Domestic Equity

At the start of the fiscal year, volatility in the equity markets increased. US equity markets rose in August 2022 until the US Federal Reserve (the Fed) chairman Jerome Powell gave hawkish comments at an economic policy symposium held in Jackson Hole, sparking a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.¹ After a continued decline in September 2022, US equity markets rebounded in October and November, despite mixed data on the economy and corporate earnings. However, the Fed’s message of continued rate hikes until data shows inflation meaningfully declining sent markets lower in December. As energy prices declined, the rate of inflation slowed modestly in the fourth quarter of 2022. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target rate by 0.75% in November and by 0.50% in December.¹

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the risk of a deeper than expected recession. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread sent investors to safe-haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the federal funds rate by only 0.25% in February of 2023 and again in March.¹ The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil.

The US economy and equity markets remained resilient in the second quarter of 2023, as milder inflation data and better-than-expected corporate earnings supported equities, with most major indexes posting gains for the quarter and with some big tech names providing optimistic future guidance. The Consumer Price Index (CPI) rose 4% as of May 31, 2023, the smallest 12-month increase in nearly two years.² The labor market maintained momentum in the second quarter with unemployment still at historic lows despite a slight uptick at the end of May. Facing persistently strong employment data, the Fed raised the federal funds rate by 0.25% at its May meeting, but investors got a long-awaited “pause” in rate hikes as the Fed left rates unchanged at its June meeting, sending equity

markets higher. However, the Fed raised rates another 0.25% in July, bringing the rate to its highest level since June 2006.¹ After two months of gains, equity markets declined in August as a resilient economy complicated the Fed’s efforts to tame inflation. While inflation has slowed from its peak in June 2022, the highest level since 1981, the CPI rose by 0.2% in July and the 12-month headline inflation rate rose to 3.2% from 3% in June.² At its annual Jackson Hole symposium in August 2023, Fed chair Jerome Powell remarked that while progress has been made, inflation is still too high, and the Fed intends “to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

Despite higher rates and increased market volatility, US stocks for the fiscal year had strong returns of 15.94%, as measured by the S&P 500 Index.³

 

1	Source: US Federal Reserve

2	Source: US Bureau of Labor Statistics

3	Source: Lipper Inc.

As an index fund, the Invesco ESG NASDAQ 100 ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Nasdaq-100^® ESG 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 designed to measure the performance of companies included in the Nasdaq-100^® Index (the “Parent Index”) that also meet the Index Provider’s environmental, social and governance (“ESG”) criteria. The Parent Index includes securities of 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market LLC based on market capitalization. Security types generally eligible for inclusion in the Parent Index are common stocks and tracking stocks of companies located in the United States, as well as American Depositary Receipts (“ADRs”) that represent securities of non-U.S. issuers. The Parent Index reflects companies from all major sectors, except for companies that are classified as “financials” according to the Industry Classification Benchmark. Companies organized as real estate investment trusts (“REITs”) are not eligible for inclusion in the Parent Index. Companies that are included in the Parent Index are evaluated for inclusion in the Index on the basis of the Index Provider’s ESG criteria, which considers a company’s (i) business activities, (ii) business controversy levels and ESG risk ratings, and (iii) adherence to the principles of the United Nations Global Compact.

The Index employs negative screens to exclude securities of companies with business activities that do not meet the eligibility criteria for the Index. Such screens rely on information from Sustainalytics, a globally-recognized independent provider of ESG research, ratings, and data. Companies’ business activities are distinguished between categories with absolute prohibitions (which do not allow any involvement by a company in a certain business activity) and categories that permit a de minimis amount of a certain business activity (generally, permitting a company to derive less than 5% of its revenues from, or to own less than 10% of another company that engages in, such activity). The Index Provider also utilizes information from Sustainalytics to determine issuers’ business controversy levels and ESG Risk Rating Score. The ESG Risk Rating Score is designed to measure the magnitude of a company’s unmanaged ESG risk. Companies are assigned risk scores ranging from 0 (indicating that ESG risks have been fully managed) to 100 (indicating the highest level of unmanaged ESG risk), and the Index Provider excludes companies with an ESG risk rating of 40 or higher from the Index. Sustainalytics also monitors companies for controversies pertaining to ESG and assesses incidents in terms of their level of impact on the environment and society and the related risk to the company itself. Such events are scored on a scale from 1 (low impact) to 5 (severe impact), depending on the reputational risk to the company and potential

impact on stakeholders. The Index Provider excludes companies with a controversy rating higher than 4 from the Index. Additionally, eligible issuers must be deemed compliant with the principles of the UN Global Compact, which is an arrangement by which companies voluntarily and publicly commit to a set of principles drawn from key UN Conventions and Declarations. The Index is calculated under a “modified ESG Risk Rating Score-adjusted market capitalization-weighted” methodology, where constituents’ weightings are calculated and adjusted based on a formula that considers such constituents’ ESG Risk Rating Score and market capitalization. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 30.78%. On a net asset value (“NAV”) basis, the Fund returned 30.88%. During the same time period, the Index returned 31.07%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the Nasdaq Composite^® Total Return Index (the “Benchmark Index”) returned 19.85%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 3,400 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparisons are a useful measure for investors as broad representations of the overall U.S. stock market.

Relative to the Benchmark Index, the majority of the Fund’s outperformance during the period can be attributed to the Fund’s overweight allocation to and security selection within the information technology sector.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the communication services and health care sectors, respectively. The financials sector detracted most significantly from the Fund’s return during the period, followed by the utilities sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included NVIDIA Corp., an information technology company (portfolio average weight of 6.43%) and Microsoft Corp., an information technology company (portfolio average weight of 13.31%). Positions that detracted most significantly from the Fund’s return during the period included Tesla, Inc., a consumer discretionary company (portfolio average weight of 2.46%) and PayPal Holdings, Inc., a financials company (portfolio average weight of 0.95%).

Sector Breakdown (% of the Fund’s Net Assets) as of August 31, 2023
Information Technology			58.96
Communication Services			12.72
Consumer Discretionary			11.21
Health Care			6.16
Consumer Staples			5.78
Industrials			3.96
Sector Types Each Less Than 3%			1.16
Money Market Funds Plus Other Assets Less Liabilities			0.05

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2023
Security
Apple, Inc.			11.71
Microsoft Corp.			11.03
NVIDIA Corp.			9.94
Amazon.com, Inc.			3.28
Alphabet, Inc., Class C			3.06
Alphabet, Inc., Class A			3.04
Tesla, Inc.			2.98
Broadcom, Inc.			2.86
Adobe, Inc.			2.79
Cisco Systems, Inc.			2.61
Total			53.3

 

*	Excluding money market fund holdings.

Fund Inception: October 27, 2021

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently, 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 0.20% 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco ESG NASDAQ Next Gen 100 ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Nasdaq Next Generation 100 ESG 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 designed to measure the performance of companies included in the Nasdaq Next Generation 100 Index^® (the “Parent Index”) that also meet the Index Provider’s environmental, social and governance (“ESG”) criteria. The Parent Index is comprised of securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the Nasdaq-100 Index^® (the “Nasdaq-100”) based on market capitalization. To be eligible for inclusion in the Parent Index, a security must meet the existing eligibility criteria of the Nasdaq-100, an index that measures the performance of 100 of the largest domestic and international nonfinancial companies by market capitalization on The Nasdaq Stock Market LLC. Securities meeting the Nasdaq-100 eligibility criteria are ranked by market capitalization, with the largest 100 securities not currently in the Nasdaq-100 selected for inclusion in the Parent Index. Security types generally eligible for inclusion in the Parent Index are common stocks and tracking stocks of companies located in the United States, as well as American Depositary Receipts (“ADRs”) that represent securities of non-U.S. issuers. The Parent Index reflects companies from all major sectors, except for companies that are classified as “financials” according to the Industry Classification Benchmark. Companies organized as real estate investment trusts (“REITs”) are not eligible for inclusion in the Parent Index. Companies that are included in the Parent Index are evaluated for inclusion in the Index on the basis of the Index Provider’s ESG criteria, which considers a company’s (i) business activities, business controversy levels and ESG risk ratings, and (iii) adherence to the principles of the United Nations Global Compact.

The Index employs negative screens to exclude securities of companies with business activities that do not meet the eligibility criteria for the Index. Such screens rely on information from Sustainalytics, a globally-recognized independent provider of ESG research, ratings, and data. Companies’ business activities are distinguished between categories with absolute prohibitions (which do not allow any involvement by a company in a certain business activity) and categories that permit a de minimis amount of a certain business activity (generally, permitting a company to derive less than 5% of its revenues from, or to own less than 10% of another company that engages in, such activity). The Index Provider also utilizes information from Sustainalytics to determine issuers’ business controversy levels and ESG Risk Rating Score. The ESG Risk Rating Score is designed to measure the magnitude of a company’s unmanaged ESG risk. Companies are assigned risk scores ranging from 0 (indicating that ESG risks have been fully

managed) to 100 (indicating the highest level of unmanaged ESG risk), and the Index Provider excludes companies with an ESG risk rating of 40 or higher from the Index. Sustainalytics also monitors companies for controversies pertaining to ESG and assesses incidents in terms of their level of impact on the environment and society and the related risk to the company itself. Such events are scored on a scale from 1 (low impact) to 5 (severe impact), depending on the reputational risk to the company and potential impact on stakeholders. The Index Provider excludes companies with a controversy rating higher than 4 from the Index. Additionally, eligible issuers must be deemed compliant with the principles of the UN Global Compact, which is an arrangement by which companies voluntarily and publicly commit to a set of principles drawn from key UN Conventions and Declarations. The Index is calculated under a “modified ESG Risk Rating Score-adjusted market capitalization-weighted” methodology, where constituents’ weightings are calculated and adjusted based on a formula that considers such constituents’ ESG Risk Rating Score and market capitalization. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 7.10%. On a net asset value (“NAV”) basis, the Fund returned 7.16%. During the same time period, the Index returned 7.35%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the Nasdaq Composite^® Total Return Index (the “Benchmark Index”) returned 19.85%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 3,400 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparisons are a useful measure for investors as broad representations of the overall U.S. stock market.

Relative to the Benchmark Index, the majority of the Fund’s underperformance during the period can be attributed to security selection within the information technology and communication services sectors, respectively.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the consumer staples and consumer discretionary sectors, respectively. The communication services sector detracted most significantly from the Fund’s return during the period, followed by the financials sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Coca-Cola Europacific Partners PLC, a consumer staples company (portfolio

average weight of 2.86%) and CDW Corp., an information technology company (portfolio average weight of 3.26%). Positions that detracted most significantly from the Fund’s return during the period included ZoomInfo Technologies, Inc., Class A, a communication services company (portfolio average weight of 0.85%) and Paramount Global, Class B, a communication services company (portfolio average weight of 1.22%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of August 31, 2023
Information Technology			41.25
Health Care			19.16
Consumer Discretionary			12.01
Industrials			11.93
Communication Services			10.85
Consumer Staples			3.06
Sector Types Each Less Than 3%			1.64
Money Market Funds Plus Other Assets Less Liabilities			0.10

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2023
Security
CDW Corp.			3.50
Coca-Cola Europacific Partners PLC			3.06
ICON PLC			2.52
Take-Two Interactive Software, Inc.			2.49
Tractor Supply Co.			2.30
MongoDB, Inc.			2.02
Ulta Beauty, Inc.			2.02
J.B. Hunt Transport Services, Inc.			1.98
Monolithic Power Systems, Inc.			1.90
Expeditors International of Washington, Inc.			1.74
Total			23.53

 

*	Excluding money market fund holdings.

Fund Inception: October 27, 2021

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently, 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 0.20% 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco NASDAQ 100 ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the NASDAQ-100 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 includes securities of 100 of the largest domestic and international nonfinancial companies listed on The Nasdaq Stock Market LLC based on market capitalization. Security types generally eligible for inclusion in the Index are common stocks and tracking stocks, as well as American Depositary Receipts (“ADRs”) that represent securities of non-U.S. issuers. Companies organized as real estate investment trusts (“REITs”) are not eligible for inclusion in the Index.

The Index reflects companies from all major sectors, except for companies that are classified as “financials” according to the Industry Classification Benchmark. The Index weights its component securities using a “modified market capitalization- weighted” methodology, which is a hybrid between equal weighting and conventional capitalization weighting. Under this methodology, no component security may exceed 24% of the weight of the Index. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 27.11%. On a net asset value (“NAV”) basis, the Fund returned 27.26%. During the same time period, the Index returned 27.44%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the Nasdaq Composite^® Total Return Index returned 19.85% and the Russell 3000^® Index returned 14.76% (each, a “Benchmark Index” and, collectively the “Benchmark Indices”). The Benchmark Indices are unmanaged indices weighted by market capitalization and based on the average performance of approximately 3,400 securities and 3,000 securities, respectively. These Benchmark Indices were selected for their recognition in the marketplace, and their performance comparisons are a useful measure for investors as broad representations of the overall U.S. stock market.

Relative to the Nasdaq Composite^® Total Return Index, the majority of the Fund’s outperformance during the period can be attributed to the Fund’s overweight allocation to and security selection within the information technology sector as well as to the Fund’s underweight allocation to and security selection within the health care sector.

Relative to the Russell 3000^® Index, the majority of the Fund’s outperformance during the period can be attributed to the Fund’s overweight allocation to and security selection within the information technology sector.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the communication services and health care sectors, respectively. The financials sector detracted most significantly from the Fund’s return during the period, followed by the utilities sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included NVIDIA Corp., an information technology company (portfolio average weight of 4.41%) and Microsoft Corp., an information technology company (portfolio average weight of 11.54%). Positions that detracted most significantly from the Fund’s return during the period included Tesla, Inc., a consumer discretionary company (portfolio average weight of 3.63%) and PayPal Holdings, Inc., a financials company (portfolio average weight of 0.72%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of August 31, 2023
Information Technology			49.35
Communication Services			15.71
Consumer Discretionary			14.05
Health Care			6.97
Consumer Staples			6.42
Industrials			4.82
Sector Types Each Less Than 3%			2.56
Money Market Funds Plus Other Assets Less Liabilities			0.12
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2023
Security
Apple, Inc.			11.30
Microsoft Corp.			9.32
Amazon.com, Inc.			5.42
NVIDIA Corp.			4.66
Meta Platforms, Inc., Class A			3.51
Broadcom, Inc.			3.16
Tesla, Inc.			3.13
Alphabet, Inc., Class A			3.09
Alphabet, Inc., Class C			3.09
Adobe, Inc.			2.10
Total			48.78

 

*	Excluding money market fund holdings.

Fund Inception: October 13, 2020

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.15% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

As an index fund, the Invesco NASDAQ Future Gen 200 ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the NASDAQ Innovators Completion Cap 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, Nasdaq, Inc. (“Nasdaq” or the “Index Provider”) compiles, maintains and calculates the Index, which is comprised of securities of approximately 200 Nasdaq-listed, non-financial companies outside of the Nasdaq-100 Index^® and Nasdaq Next Generation 100 Index^® that have the most valuable portfolios of patents relative to their total market values, as estimated by a third-party data provider.

Securities are selected for inclusion in the Index based on the estimated value of their issuers’ patent portfolios, as determined by IPR Strategies, an independent data provider. IPR Strategies seeks to determine the potential value of an issuer by quantifying such issuer’s intangible assets, such as its intellectual property and research and development activities, as represented by patents held by such issuer. To value a company’s patent portfolio, IPR Strategies utilizes a proprietary valuation model that takes into account patent data collected from multiple sources, including patent offices and corporate filings, as well as a variety of other economic data, including actual values from previously traded patents. The model then determines a “patent value estimate,” which represents the estimated dollar value of the portfolio of patents held by an issuer.

To be eligible for inclusion in the Index, a security must be a member of the Nasdaq Composite (a broad-based, capitalization-weighted index of all stocks listed on the Nasdaq Stock Market LLC) and must, among other criteria at the time of screening, have (i) traded for at least three calendar months, (ii) a minimum full market capitalization of $100 million, and (iii) a minimum average daily trading volume of $1 million. The Index excludes securities of issuers included in the Nasdaq-100 Index^® (an index that measures the performance of 100 of the largest Nasdaq-listed non-financial companies by market capitalization) and the Nasdaq Next Generation 100 Index^® (an index that measures the performance of the 100 largest Nasdaq-listed companies outside of the Nasdaq-100 Index^® based on market capitalization). Securities eligible for inclusion in the Index may be of any capitalization (subject to the minimum $100 million threshold noted above), including small- and mid-cap companies. The Index may include companies from all major sectors, except for companies that are classified as “financials” according to the Industry Classification Benchmark.

All eligible issuers are ranked by the ratio of the company’s patent value estimate (as determined by IPR Strategies) to its market capitalization, and the securities of the 200 issuers with the largest ratios (i.e., those with larger patent portfolio values relative

to their market capitalization) are included in the Index. The Index is an equally weighted index. “Equal weighting” means that the Index assigns each component security the same weight.

Security types generally eligible for inclusion in the Index include common stocks and American Depositary Receipts (“ADRs”) that represent securities of non-U.S. issuers. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal period from the Fund’s inception (October 13, 2022, the first day of trading on the exchange) through August 31, 2023, on a market price basis, the Fund returned 4.01%. On a net asset value (“NAV”) basis, the Fund returned 4.09%. During the same time period, the Index returned 4.10%. During the fiscal period, 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 that the Fund incurred during the period, which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Nasdaq Composite^® Total Return Index returned 32.87% and the Russell 2000^® Index returned 11.44% (each, a “Benchmark Index” and, collectively the “Benchmark Indices”). The Benchmark Indices are unmanaged indices weighted by market capitalization and based on the average performance of approximately 3,400 securities and 2,000 securities, respectively. These Benchmark Indices were selected for their recognition in the marketplace, and their performance comparisons are a useful measure for investors as broad representations of the overall U.S. stock market.

Relative to the Nasdaq Composite^® Total Return Index, the majority of the Fund’s underperformance during the period can be attributed to the overweight allocation to and security selection within the health care sector and to security selection within the information technology sector.

Relative to the Russell 2000^® Index, the majority of the Fund’s underperformance during the period can be attributed to the overweight allocation to and security selection within the health care sector.

For the fiscal period ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and energy sectors, respectively. The materials sector detracted most significantly from the Fund’s return during the period, followed by the consumer discretionary and consumer staples sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal period ended August 31, 2023, included ImmunoGen, Inc., a health care company (portfolio average

weight of 0.73%) and Madrigal Pharmaceuticals, Inc., a health care company (no longer held at fiscal period-end). Positions that detracted most significantly from the Fund’s return during the period included Amyris, Inc., a materials company (no longer held at fiscal period-end) and NGM Biopharmaceuticals, Inc., a health care company (portfolio average weight of 0.37%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of August 31, 2023
Health Care			53.44
Information Technology			28.81
Consumer Discretionary			8.35
Industrials			5.12
Sector Types Each Less Than 3%			4.23
Money Market Funds Plus Other Assets Less Liabilities			0.05

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2023
Security
SurModics, Inc.			1.07
Aehr Test Systems			0.83
Interface, Inc.			0.80
Twist Bioscience Corp.			0.78
Heron Therapeutics, Inc.			0.77
Sleep Number Corp.			0.75
MillerKnoll, Inc.			0.75
Corcept Therapeutics, Inc.			0.75
Roku, Inc., Class A			0.74
Quanterix Corp.			0.72
Total			7.96

 

*	Excluding money market fund holdings.

Fund Inception: October 13, 2022

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 0.20% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-	Cumulative Inception returns for the Fund, Index and Benchmark Indices are based on the inception date of the Fund.

As an index fund, the Invesco NASDAQ Next Gen 100 ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the NASDAQ Next Generation 100 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 securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index^® (the “NASDAQ-100”) based on market capitalization.

To be eligible for inclusion in the Index, a security must meet the existing eligibility criteria of the NASDAQ-100, an index that measures the performance of 100 of the largest domestic and international nonfinancial companies by market capitalization on The Nasdaq Stock Market LLC. Securities meeting the NASDAQ-100 eligibility criteria are ranked by market capitalization, with approximately the largest 100 securities not currently in the NASDAQ-100 selected for inclusion in the Index.

Security types generally eligible for inclusion in the Index are common stocks and tracking stocks, as well as American Depositary Receipts (“ADRs”) that represent securities of non-U.S. issuers. The Index may include companies from all major sectors, except for companies that are classified as “financials” according to the Industry Classification Benchmark. The Index may include Nasdaq-listed securities of both U.S. and foreign companies, including foreign companies located in emerging market countries. Companies organized as real estate investment trusts (“REITs”) are not eligible for inclusion in the Index.

The Index weights its component securities using a “modified market capitalization-weighted” methodology, which is a hybrid between equal weighting and conventional capitalization weighting. Under this methodology, no issuer may exceed 4% of the weight of the Index. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 6.57%. On a net asset value (“NAV”) basis, the Fund returned 6.70%. During the same time period, the Index returned 6.83%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the Nasdaq Composite^® Total Return Index returned 19.85% and the Russell 3000^® Index returned 14.76% (each, a “Benchmark Index” and, collectively the “Benchmark Indices”). The Benchmark Indices are unmanaged

indices weighted by market capitalization and based on the average performance of approximately 3,400 securities and 3,000 securities, respectively. These Benchmark Indices were selected for their recognition in the marketplace, and their performance comparisons are a useful measure for investors as broad representations of the overall U.S. stock market.

Relative to the Nasdaq Composite^® Total Return Index, the majority of the Fund’s underperformance during the period can be attributed to security selection within the information technology and communication services sectors, respectively.

Relative to the Russell 3000^® Index, the majority of the Fund’s underperformance during the period can be attributed to security selection within the information technology and communication services sectors, respectively.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and consumer staples sectors, respectively. The communication services sector detracted most significantly from the Fund’s return during the period, followed by the financials and utilities sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Horizon Therapeutics PLC, a health care company (portfolio average weight of 1.68%) and ON Semiconductor Corp., an information technology company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during the period included ZoomInfo Technologies, Inc., Class A, a communication services company (portfolio average weight of 0.89%) and SolarEdge Technologies, Inc., an information technology company (portfolio average weight of 1.17%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of August 31, 2023
Information Technology			33.73
Health Care			24.02
Industrials			13.13
Consumer Discretionary			10.64
Communication Services			10.14
Sector Types Each Less Than 3%			8.25
Money Market Funds Plus Other Assets Less Liabilities			0.09

Fund Inception: October 13, 2020

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.15% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

		Shares				Value
Common Stocks & Other Equity Interests-99.95%
Communication Services-12.72%
Alphabet, Inc., Class A(b)			4,044			$	550,671
Alphabet, Inc., Class C(b)			4,028				553,246
Charter Communications, Inc., Class A(b)			174				76,233
Comcast Corp., Class A.			5,158				241,188
Electronic Arts, Inc.			585				70,188
Meta Platforms, Inc., Class A(b)			893				264,230
Netflix, Inc.(b)(c)			768				333,066
Sirius XM Holdings, Inc.(c)			6,735				29,634
T-Mobile US, Inc.(b)			1,350				183,938
							2,302,394
Consumer Discretionary-11.21%
Airbnb, Inc., Class A(b)			514				67,617
Amazon.com, Inc.(b)			4,296				592,891
Booking Holdings, Inc.(b)			49				152,146
eBay, Inc.			871				39,003
JD.com, Inc., ADR (China)			480				15,941
Lucid Group, Inc.(b)(c)			2,535				15,920
lululemon athletica, inc.(b)			206				78,540
Marriott International, Inc., Class A			414				84,253
MercadoLibre, Inc. (Brazil)(b)			62				85,086
O’Reilly Automotive, Inc.(b)(c)			125				117,462
PDD Holdings, Inc., ADR (China)(b)			478				47,308
Ross Stores, Inc.			543				66,143
Starbucks Corp.			1,305				127,159
Tesla, Inc.(b)(c)			2,087				538,613
							2,028,082
Consumer Staples-5.78%
Costco Wholesale Corp.			534				293,316
Dollar Tree, Inc.(b)(c)			401				49,066
Keurig Dr Pepper, Inc.			1,717				57,777
Kraft Heinz Co. (The)			523				17,306
Mondelez International, Inc., Class A			1,798				128,125
Monster Beverage Corp.(b)			817				46,904
PepsiCo, Inc.			2,337				415,799
Walgreens Boots Alliance, Inc.(c)			1,493				37,788
							1,046,081
Financials-0.66%
PayPal Holdings, Inc.(b)			1,913				119,582
Health Care-6.16%
Align Technology, Inc.(b)(c)			118				43,677
Amgen, Inc.			709				181,745
AstraZeneca PLC, ADR (United Kingdom)			755				51,204
Biogen, Inc.(b)			190				50,798
DexCom, Inc.(b)			460				46,451
Gilead Sciences, Inc.			1,571				120,150
IDEXX Laboratories, Inc.(b)			130				66,483
Illumina, Inc.(b)			334				55,183
Intuitive Surgical, Inc.(b)			487				152,275
Moderna, Inc.(b)(c)			471				53,256
Regeneron Pharmaceuticals, Inc.(b)			172				142,156
Seagen, Inc.(b)			181				37,299
Vertex Pharmaceuticals, Inc.(b)			325				113,211
							1,113,888

		Shares				Value
Industrials-3.96%
Automatic Data Processing, Inc.			795			$	202,415
Cintas Corp.			164				82,684
Copart, Inc.(b)			1,554				69,666
CSX Corp.			2,744				82,869
Fastenal Co.			576				33,166
Old Dominion Freight Line, Inc.			188				80,346
PACCAR, Inc.			465				38,265
Paychex, Inc.			614				75,049
Verisk Analytics, Inc.			219				53,046
							717,506
Information Technology-58.96%
Adobe, Inc.(b)			903				505,084
Advanced Micro Devices, Inc.(b)			2,291				242,205
ANSYS, Inc.(b)			170				54,208
Apple, Inc.(c)			11,283				2,119,737
Applied Materials, Inc.			1,679				256,484
ASML Holding N.V., New York Shares (Netherlands)			197				130,124
Atlassian Corp., Class A(b)			219				44,689
Autodesk, Inc.(b)			375				83,228
Broadcom, Inc.			561				517,741
Cadence Design Systems, Inc.(b)			559				134,406
Cisco Systems, Inc.			8,247				472,965
Cognizant Technology Solutions Corp., Class A			962				68,889
Crowdstrike Holdings, Inc., Class A(b)			269				43,855
Datadog, Inc., Class A(b)			397				38,303
Enphase Energy, Inc.(b)			182				23,029
Fortinet, Inc.(b)			1,221				73,516
GLOBALFOUNDRIES, Inc.(b)(c)			971				53,648
Intel Corp.			6,464				227,145
Intuit, Inc.			485				262,778
KLA Corp.			229				114,928
Lam Research Corp.			263				184,731
Marvell Technology, Inc.			1,434				83,531
Microchip Technology, Inc.			324				26,516
Micron Technology, Inc.			1,726				120,716
Microsoft Corp.			6,090				1,996,058
NVIDIA Corp.			3,645				1,798,990
NXP Semiconductors N.V. (China)			361				74,265
ON Semiconductor Corp.(b)			548				53,956
Palo Alto Networks, Inc.(b)			586				142,574
QUALCOMM, Inc.			2,032				232,725
Synopsys, Inc.(b)			296				135,831
Texas Instruments, Inc.			1,255				210,915
Workday, Inc., Class A(b)			347				84,842
Zoom Video Communications, Inc., Class A(b)			378				26,849
Zscaler, Inc.(b)(c)			199				31,054
							10,670,515
Real Estate-0.24%
CoStar Group, Inc.(b)			537				44,029
Utilities-0.26%
Exelon Corp.			1,192				47,823
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.95% (Cost $17,260,518)							18,089,900

		Shares				Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds-18.02%
Invesco Private Government Fund, 5.30%(d)(e)(f)			857,889			$	857,889
Invesco Private Prime Fund, 5.51%(d)(e)(f)			2,404,298				2,404,298
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,262,197)							3,262,187
TOTAL INVESTMENTS IN SECURITIES-117.97% (Cost $20,522,715)							21,352,087
OTHER ASSETS LESS LIABILITIES-(17.97)%							(3,253,157	)
NET ASSETS-100.00%						$	18,098,930

		Shares				Value
Common Stocks & Other Equity Interests-99.90%
Communication Services-10.85%
Fox Corp., Class A			873			$	28,861
Fox Corp., Class B			765				23,348
Liberty Broadband Corp., Class A(b)			38				3,558
Liberty Broadband Corp., Class C(b)			269				25,168
Liberty Global PLC, Class A (United Kingdom)(b)			330				6,085
Liberty Global PLC, Class C (United Kingdom)(b)(c)			517				10,257
Liberty Media Corp.-Liberty Formula One(b)			518				35,633
Liberty Media Corp.-Liberty Live, Series C(b)			21				707
Match Group, Inc.(b)			699				32,762
News Corp., Class A			1,298				27,894
News Corp., Class B			656				14,432
Paramount Global, Class B(c)			1,809				27,298
Take-Two Interactive Software, Inc.(b)			524				74,513
ZoomInfo Technologies, Inc., Class A(b)			825				14,867
							325,383
Consumer Discretionary-12.01%
Etsy, Inc.(b)			271				19,938
Expedia Group, Inc.(b)			211				22,870
Five Below, Inc.(b)(c)			143				24,590
Hasbro, Inc.			546				39,312
LKQ Corp.			927				48,695
Pool Corp.(c)			127				46,431
Tractor Supply Co.			315				68,828
Trip.com Group Ltd., ADR (China)(b)			734				28,854
Ulta Beauty, Inc.(b)			146				60,594
							360,112
Consumer Staples-3.06%
Coca-Cola Europacific Partners PLC (United Kingdom)			1,433				91,869
Financials-1.13%
Jack Henry & Associates, Inc.			215				33,708
Health Care-19.16%
Acadia Healthcare Co., Inc.(b)			126				9,715
Alnylam Pharmaceuticals, Inc.(b)(c)			155				30,662
Argenx SE, ADR (Netherlands)(b)			27				13,567
BeiGene Ltd., ADR (China)(b)(c)			64				13,283
BioMarin Pharmaceutical, Inc.(b)			321				29,333
BioNTech SE, ADR (Germany)(b)			178				21,526
Bio-Techne Corp.			412				32,301
Bruker Corp.			339				22,238
Henry Schein, Inc.(b)			420				32,147
Hologic, Inc.(b)			442				33,035
Horizon Therapeutics PLC(b)			131				14,769
ICON PLC(b)(c)			291				75,642
Incyte Corp.(b)			435				28,071
Insulet Corp.(b)			126				24,155
Jazz Pharmaceuticals PLC(b)			105				15,053
Karuna Therapeutics, Inc.(b)			30				5,633
Neurocrine Biosciences, Inc.(b)(c)			177				19,273
Novocure Ltd.(b)(c)			125				2,757
R1 RCM, Inc.(b)(c)			806				13,895
Repligen Corp.(b)(c)			160				27,826
Royalty Pharma PLC, Class A			580				17,296
Sanofi, ADR			663				35,258
Sarepta Therapeutics, Inc.(b)			81				9,802

		Shares				Value
Health Care-(continued)
Shockwave Medical, Inc.(b)			45			$	9,918
United Therapeutics Corp.(b)			99				22,212
Viatris, Inc.			1,404				15,093
							574,460
Industrials-11.93%
American Airlines Group, Inc.(b)			1,067				15,717
Avis Budget Group, Inc.(b)(c)			93				19,845
C.H. Robinson Worldwide, Inc.			287				25,953
Expeditors International of Washington, Inc.(c)			446				52,053
Grab Holdings Ltd., Class A (Singapore)(b)			7,456				28,109
J.B. Hunt Transport Services, Inc.(c)			316				59,370
Lincoln Electric Holdings, Inc.			125				24,057
Middleby Corp. (The)(b)(c)			62				9,027
Nordson Corp.			99				24,170
Paylocity Holding Corp.(b)			124				24,862
SS&C Technologies Holdings, Inc.			534				30,662
Tetra Tech, Inc.			138				21,714
United Airlines Holdings, Inc.(b)			444				22,116
							357,655
Information Technology-41.25%
Akamai Technologies, Inc.(b)			426				44,768
Amdocs Ltd.			394				35,145
Bentley Systems, Inc., Class B			802				40,028
CDW Corp.			497				104,941
Check Point Software Technologies Ltd. (Israel)(b)			244				32,840
Cognex Corp.(c)			567				26,694
DocuSign, Inc.(b)			516				25,955
Entegris, Inc.			356				36,052
F5, Inc.(b)			151				24,713
First Solar, Inc.(b)			274				51,819
Flex Ltd.(b)			1,791				49,414
Gen Digital, Inc.			1,770				35,842
Logitech International S.A., Class R (Switzerland)(c)			515				35,442
Manhattan Associates, Inc.(b)			166				33,635
MongoDB, Inc.(b)			159				60,627
Monolithic Power Systems, Inc.			109				56,812
NetApp, Inc.			631				48,398
Okta, Inc.(b)(c)			414				34,573
Open Text Corp. (Canada)			726				29,229
PTC, Inc.(b)			299				44,004
Qorvo, Inc.(b)			135				14,498
Seagate Technology Holdings PLC(c)			663				46,934
Skyworks Solutions, Inc.			230				25,010
SolarEdge Technologies, Inc.(b)			109				17,720
Splunk, Inc.(b)			359				43,532
Teradyne, Inc.(c)			448				48,326
Trimble, Inc.(b)			815				44,654
VeriSign, Inc.(b)			231				47,999
Western Digital Corp.(b)			1,095				49,275
Zebra Technologies Corp., Class A(b)			174				47,852
							1,236,731
Materials-0.51%
Steel Dynamics, Inc.			142				15,136
Total Common Stocks & Other Equity Interests (Cost $3,193,145)							2,995,054