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Invesco Annual Report to Shareholders

 

April 30, 2022

 

   PYZ   Invesco DWA Basic Materials Momentum ETF
   PEZ   Invesco DWA Consumer Cyclicals Momentum ETF
   PSL   Invesco DWA Consumer Staples Momentum ETF
   PXI   Invesco DWA Energy Momentum ETF
   PFI   Invesco DWA Financial Momentum ETF
   PTH   Invesco DWA Healthcare Momentum ETF
   PRN   Invesco DWA Industrials Momentum ETF
   PTF   Invesco DWA Technology Momentum ETF
   PUI   Invesco DWA Utilities Momentum ETF
   PNQI   Invesco NASDAQ Internet ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      4  
Liquidity Risk Management Program      33  
Schedules of Investments   

Invesco DWA Basic Materials Momentum ETF (PYZ)

     34  

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

     36  

Invesco DWA Consumer Staples Momentum ETF (PSL)

     38  

Invesco DWA Energy Momentum ETF (PXI)

     40  

Invesco DWA Financial Momentum ETF (PFI)

     42  

Invesco DWA Healthcare Momentum ETF (PTH)

     44  

Invesco DWA Industrials Momentum ETF (PRN)

     46  

Invesco DWA Technology Momentum ETF (PTF)

     48  

Invesco DWA Utilities Momentum ETF (PUI)

     50  

Invesco NASDAQ Internet ETF (PNQI)

     52  
Statements of Assets and Liabilities      54  
Statements of Operations      56  
Statements of Changes in Net Assets      58  
Financial Highlights      62  
Notes to Financial Statements      70  
Report of Independent Registered Public Accounting Firm      82  
Fund Expenses      83  
Tax Information      85  
Trustees and Officers      86  
Approval of Investment Advisory Contracts      96  

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

The US stock market hit new highs in the second quarter of 2021, despite higher volatility stemming from inflation concerns and the potential for rising interest rates. Investors remained optimistic about the strength of the economic recovery after the US gross domestic product (GDP) grew at a 6.4% annualized rate for the first quarter of 2021.1 Corporate earnings also remained strong as the majority of S&P 500 companies beat Wall Street earnings forecasts. US equity markets continued to move higher in July 2021 despite inflation concerns and increasing COVID-19 infection rates due to the rapidly spreading Delta variant. Despite the Consumer Price Index (CPI) increasing monthly from June through September,2 the US Federal Reserve (the Fed) declined to raise interest rates at its September Federal Open Market Committee meeting. The US stock market saw continued volatility in August 2021 and a selloff through most of September due to increasing concerns of inflation due to a spike in oil prices and supply chain shortages causing rising costs.

Equity markets were volatile in the fourth quarter of 2021 amid record inflation and the emergence of a new COVID-19 variant. Pandemic-related supply chain disruptions and labor shortages intensified during the quarter, resulting in broadly higher input costs for companies and consumers alike. Additionally, the price of oil (West Texas Intermediate) rose to nearly $85 per barrel in October,3 causing higher gas prices for consumers and pushing energy stocks higher. The CPI reported for November increased 0.8%, resulting in a 6.8% increase over the last 12 months, the highest since 1982.2 To combat inflation, the Fed announced a faster pace of tapering at its December meeting, pledging to end its asset purchase program by March 2022. The Fed also announced the potential for three interest rate increases in 2022. With solid corporate earnings and optimism about the COVID-19 Omicron variant reporting milder symptoms, stocks rallied at 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 inflationary 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 2008.3 The CPI rose by 7.9% for the 12 months ended February 28, 2022, the largest 12-month increase since 1982.2 To combat inflation, the Fed raised the federal funds rate by one-quarter percentage point in March, with several more rate increases expected in 2022. As the war in Ukraine continued and corporate earnings in high-profile names, like Netflix reported slowing growth and profits, equity markets sold off for much of the month of April 2022. In this environment, US stocks had flat

returns for the fiscal year ended April 30, 2022, of 0.21%, as measured by the S&P 500 Index.4

 

1 

Source: US Bureau of Economic Analysis

2 

Source: US Bureau of Labor Statistics

3 

Source: Bloomberg L.P.

4 

Source: Lipper Inc.

Global Equity

At the beginning of the fiscal year, global equity markets were bolstered by the acceleration of vaccination rollouts and easing of COVID-19-related restrictions in most developed markets, with growth stocks outperforming value stocks in most regions.

Developed global equity markets ended the second half of 2021 in positive territory despite rising inflation and the emergence of Omicron, a new COVID-19 variant. Pandemic-related supply chain disruptions and labor shortages intensified during the fiscal year, resulting in higher costs for companies and consumers. Emerging market equities declined during the fiscal year, primarily due to weak performance of Chinese equities, which were affected by significant regulatory changes in the private tutoring industry, increased regulation in the technology sector, the potential default of a large Chinese property developer (which did, in fact, default later in 2021) and COVID-19 concerns.

Global 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 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 and value stocks outperforming growth stocks.

At the end of the fiscal year, global equity markets continued their decline, as they were impacted by the war in Ukraine, COVID-19 lockdowns in China and the increase of interest rates in the US to combat inflation. For the overall fiscal year, most regions were in negative territory, but developed market equities outperformed emerging market equities.

 

 

  3  

 


 

 

PYZ    Management’s Discussion of Fund Performance
   Invesco DWA Basic Materials Momentum ETF (PYZ)

 

As an index fund, the Invesco DWA Basic Materials Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Basic Materials Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the basic materials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the basic materials sector for inclusion in the Index. Companies in the basic materials sector are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned 7.70%. On a net asset value (“NAV”) basis, the Fund returned 7.61%. During the same time period, the Index returned 8.28%. During the fiscal year, the Fund fully replicated

the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Materials Index (the “Benchmark Index”) returned 4.36%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 28 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the materials sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the steel and aluminum sub-industries and most underweight in the industrial gases and paper packaging sub-industries during the fiscal year ended April 30, 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 the steel sub-industry, and the overweight allocation to and stock selection within the fertilizers and agricultural chemicals sub-industry.

For the fiscal year ended April 30, 2022, the steel sub-industry contributed most significantly to the Fund’s return, followed by the fertilizers and agricultural chemicals sub-industry. Specialty chemicals and paper packaging were the largest detractors.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Alcoa Corp., an aluminum company (portfolio average weight of 4.10%), and Mosaic Co. (The), a fertilizers and agricultural chemicals company (portfolio average weight of 3.70%). Positions that detracted most significantly from the Fund’s return during this period included Allegheny Technologies, Inc., a steel company (portfolio average weight of 1.70%), and Danimer Scientific, Inc., Class A, a specialty chemicals company (portfolio average weight of 0.44%).

 

 

  4  

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Steel      34.91  
Fertilizers & Agricultural Chemicals      18.91  
Commodity Chemicals      14.23  
Specialty Chemicals      10.65  
Forest Products      3.91  
Gold      3.44  
Aluminum      3.37  
Diversified Metals & Mining      2.88  
Diversified Chemicals      2.86  
Copper      2.70  
Oil & Gas Refining & Marketing      2.09  
Money Market Funds Plus Other Assets Less Liabilities      0.05  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Nucor Corp.      4.59  
FMC Corp.      4.39  
Reliance Steel & Aluminum Co.      4.02  
Louisiana-Pacific Corp.      3.91  
Intrepid Potash, Inc.      3.76  
Westlake Corp.      3.73  
Mosaic Co. (The)      3.70  
Cleveland-Cliffs, Inc.      3.58  
CF Industries Holdings, Inc.      3.58  
Celanese Corp.      3.58  
Total      38.84  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

    1 Year    

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Basic Materials Technical LeadersTM Index     8.28     16.99     60.14     10.21     62.60     11.11     186.73       10.76     389.76
S&P 500® Materials Index     4.36       16.42       57.79       12.16       77.52       11.06       185.39         8.83       272.86  
Fund                    
NAV Return     7.61       16.22       56.98       9.49       57.35       10.37       168.27         9.91       334.59  
Market Price Return     7.70       16.26       57.16       9.51       57.51       10.39       168.80         9.92       335.20  

 

 

  5  

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.82% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Basic Materials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Basic Materials Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  6  

 


 

 

PEZ    Management’s Discussion of Fund Performance
   Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

 

As an index fund, the Invesco DWA Consumer Cyclicals Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Consumer Cyclicals Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the consumer discretionary (or cyclicals) sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the consumer discretionary sector for inclusion in the Index. Companies in the consumer discretionary sector are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and home construction and furnishing.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (20.90)%. On a net asset value (“NAV”) basis,

the Fund returned (21.10)%. During the same time period, the Index returned (20.58)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Consumer Discretionary Index (the “Benchmark Index”) returned (10.82)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the consumer discretionary sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track the Index, which employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the specialty stores sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight in automobile manufacturers sub-industry and overweight in the homebuilding sub-industry.

For the fiscal year ended April 30, 2022, the department stores retail sub-industry contributed most significantly to the Fund’s return followed by the education services sub-industry. The home building sub-industry detracted most significantly from the Fund’s return, followed by the apparel retail and movies and entertainment sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Dillard’s Inc., Class A, a department store company (portfolio average weight of 2.02%), and Houghton Mifflin Harcourt Co., an education services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included AMC Entertainment Holdings, Inc., Class A, a movies and entertainment company (no longer held at fiscal year-end), and Cable One Inc., a cable & satellite company (no longer held at fiscal year-end).

 

 

  7  

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Automotive Retail      11.91  
Hotels, Resorts & Cruise Lines      11.06  
Specialty Stores      10.03  
Hypermarkets & Super Centers      7.11  
Casinos & Gaming      6.85  
Home Improvement Retail      6.38  
Leisure Facilities      6.35  
Department Stores      6.16  
Broadcasting      5.37  
Distributors      4.08  
Apparel Retail      3.77  
Movies & Entertainment      3.66  
Homebuilding      3.15  
Sub-Industry Types Each Less than 3%      14.22  
Money Market Funds Plus Other Assets Less Liabilities      (0.10
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Dillard’s, Inc., Class A      6.16  
O’Reilly Automotive, Inc.      5.41  
SeaWorld Entertainment, Inc.      4.78  
Signet Jewelers Ltd.      4.74  
Costco Wholesale Corp.      4.04  
Home Depot, Inc. (The)      3.42  
BJ’s Wholesale Club Holdings, Inc.      3.07  
Lowe’s Cos., Inc.      2.96  
Wyndham Hotels & Resorts, Inc.      2.94  
Tractor Supply Co.      2.86  
Total      40.38  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Consumer Cyclicals Technical LeadersTM Index     (20.58 )%      8.25     26.84     10.56     65.22     10.10     161.71       7.98     230.04
S&P 500® Consumer Discretionary Index     (10.82     11.14       37.29       13.39       87.47       14.94       302.44         11.56       448.25  
Fund                    
NAV Return     (21.10     7.69       24.90       10.05       61.38       9.47       147.20         7.37       202.09  
Market Price Return     (20.90     7.76       25.13       10.08       61.66       9.50       147.76         7.38       202.79  

 

 

  8  

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.80% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Consumer Cyclicals Technical LeadersTM Index performance is comprised of the performance of the Dynamic Consumer Discretionary Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  9  

 


 

 

PSL    Management’s Discussion of Fund Performance
   Invesco DWA Consumer Staples Momentum ETF (PSL)

 

As an index fund, the Invesco DWA Consumer Staples Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Consumer Staples Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the consumer staples sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the consumer staples sector for inclusion in the Index. Companies in the consumer staples sector are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverages, and non-discretionary retail goods and services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (9.41)%. On a net asset value (“NAV”) basis, the Fund returned (9.27)%. During the same time period, the

Index returned (9.01)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Consumer Staples Index (the “Benchmark Index”) returned 16.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 32 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the consumer staples sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the personal products sub-industry and most underweight in the hypermarkets & super centers sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s stock selection in the soft drinks sub-industry and the overweight allocation to and security selection in the personal products sub-industry.

For the fiscal year ended April 30, 2022, the agricultural products sub-industry contributed most significantly to the Fund’s return, followed by the household products and food retail sub-industries, respectively. The personal products sub-industry detracted most significantly from the Fund’s return, followed by the education services and soft drinks sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Kroger Co. (The), a food retail company (portfolio average weight of 2.89), and Bunge Ltd., an agricultural products company (portfolio average weight of 3.22%). Positions that detracted most significantly from the Fund’s return during this period included Chegg Inc., an education services company (portfolio average weight of 0.73), and Celsius Holdings, Inc., a soft drinks company (portfolio average weight of 1.96).

 

 

  10  

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Packaged Foods & Meats      16.58  
Food Retail      12.99  
Food Distributors      12.06  
Soft Drinks      11.23  
Household Products      9.16  
Agricultural Products      7.15  
Specialized Consumer Services      7.12  
Distillers & Vintners      6.62  
Personal Products      5.57  
Include in Sub-Industry Types Each Less than 3%      11.52  
Money Market Funds Plus Other Assets Less Liabilities      0.00  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Procter & Gamble Co. (The)      3.73  
Keurig Dr Pepper, Inc.      3.70  
Archer-Daniels-Midland Co.      3.65  
Church & Dwight Co., Inc.      3.60  
Bunge Ltd.      3.50  
Hershey Co. (The)      3.34  
Performance Food Group Co.      3.31  
PepsiCo, Inc.      3.28  
Estee Lauder Cos., Inc. (The), Class A      3.14  
Tyson Foods, Inc., Class A      3.09  
Total      34.34  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Consumer Staples Technical LeadersTM Index     (9.01 )%      6.67     21.37     8.73     51.97     11.92     208.24       10.19     352.16
S&P 500® Consumer Staples Index     16.50       14.02       48.23       10.50       64.71       11.77       204.32         10.64       381.78  
Fund                    
NAV Return     (9.27     6.16       19.64       8.16       48.03       11.27       190.87         9.50       310.30  
Market Price Return     (9.41     6.14       19.57       8.14       47.89       11.26       190.72         9.49       309.84  

 

 

 

  11  

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.75% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Consumer Staples Technical LeadersTM Index performance is comprised of the performance of the Dynamic Consumer Staples Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  12  

 


 

 

PXI    Management’s Discussion of Fund Performance
   Invesco DWA Energy Momentum ETF (PXI)

 

As an index fund, the Invesco DWA Energy Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Energy Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the energy sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the energy sector for inclusion in the Index. Companies in the energy sector are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned 72.89%. On a net asset value (“NAV”) basis, the Fund returned 72.99%. During the same time period, the

Index returned 73.90%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns.

During this same time period, the S&P 500® Energy Index (the “Benchmark Index”) returned 60.82%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 21 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the energy sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas exploration & production sub-industry and most underweight in the integrated oil & gas sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to an overweight allocation to and security selection in the oil & gas exploration & production sub-industry and an overweight allocation to the oil and gas drilling sub-industry.

For the fiscal year ended April 30, 2022, the oil & gas exploration & production sub-industry contributed most significantly to the Fund’s return. The semiconductors sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Antero Resources Corp., an oil & gas exploration & production company (portfolio average weight of 3.52%), and Ovintiv Inc., an oil & gas exploration & production company (portfolio average weight of 4.56%). Positions that detracted most significantly from the Fund’s return during this period included Meta Materials Inc., a semiconductors and semiconductor equipment company (no longer held at fiscal year-end), and Continental Resources, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end).

 

 

  13  

 


 

Invesco DWA Energy Momentum ETF (PXI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Oil & Gas Exploration & Production      59.44  
Oil & Gas Equipment & Services      11.35  
Oil & Gas Storage & Transportation      8.01  
Coal & Consumable Fuels      5.79  
Integrated Oil & Gas      4.82  
Oil & Gas Drilling      4.77  
Oil & Gas Refining & Marketing      4.31  
Steel      1.50  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Antero Resources Corp.      4.29  
Cheniere Energy, Inc.      4.24  
Range Resources Corp.      4.00  
Ovintiv, Inc.      3.94  
Targa Resources Corp.      3.77  
Matador Resources Co.      3.65  
PDC Energy, Inc.      3.61  
SM Energy Co.      3.42  
Devon Energy Corp.      3.16  
APA Corp.      3.14  
Total      37.22  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Energy Technical LeadersTM Index     73.90     12.23     41.35     5.07     28.08     2.32     25.83       4.88     109.75
S&P 500® Energy Index     60.82       10.45       34.73       7.03       40.44       4.13       49.95         5.10       116.90  
Fund                    
NAV Return     72.99       11.66       39.20       4.51       24.67       1.72       18.64         4.26       91.45  
Market Price Return     72.89       11.67       39.25       4.52       24.74       1.72       18.62         4.27       91.66  

 

 

 

  14  

 


 

Invesco DWA Energy Momentum ETF (PXI) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.85% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Energy Technical LeadersTM Index performance is comprised of the performance of the Dynamic Energy Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  15  

 


 

 

PFI    Management’s Discussion of Fund Performance
   Invesco DWA Financial Momentum ETF (PFI)

 

As an index fund, the Invesco DWA Financial Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Financials Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the financials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the financials sector for inclusion in the Index. Companies in the financials sector are principally engaged in the business of providing financial services and products, including banking, investment services, insurance and real estate finance services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (9.85)%. On a net asset value (“NAV”) basis, the Fund returned (9.63)%. During the same time period, the

Index returned (9.07)%. 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 fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Financials Index (the “Benchmark Index”) returned (3.00)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 66 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the financials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an index that employs a proprietary stock selection and weighting methodology of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large- capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the regional banks sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to an overweight allocation to and security selection in the consumer finance sub-industry and an overweight allocation to and security selection in the regional banks sub-industry.

For the fiscal year ended April 30, 2022, the asset management and custody banks sub-industry contributed most significantly to the Fund’s return, followed by the paper packaging sub-industry. The regional banks sub-industry detracted most significantly from the Fund’s return, followed by the consumer finance sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Blackstone Inc., a custody banks company (no longer held at fiscal year-end), and LendingClub Corp., a consumer finance company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Upstart Holdings, Inc., a consumer finance company (no longer held at fiscal year-end), and B. Riley Financial, Inc., an investment banking and brokerage company (portfolio average weight of 1.16%).

 

 

  16  

 


 

Invesco DWA Financial Momentum ETF (PFI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Regional Banks      14.01  
Investment Banking & Brokerage      11.78  
Specialized REITs      10.62  
Industrial REITs      10.26  
Residential REITs      10.18  
Insurance Brokers      8.40  
Asset Management & Custody Banks      6.54  
Property & Casualty Insurance      5.20  
Financial Exchanges & Data      5.13  
Thrifts & Mortgage Finance      3.65  
Sub-Industry Types Each Less than 3%      14.20  
Money Market Funds Plus Other Assets Less Liabilities      0.03  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Sun Communities, Inc.      6.09  
CubeSmart      5.54  
LPL Financial Holdings, Inc.      5.36  
Ameriprise Financial, Inc.      4.83  
Prologis, Inc.      4.37  
Rexford Industrial Realty, Inc.      3.59  
Independence Realty Trust, Inc.      3.25  
Nasdaq, Inc.      3.00  
Marsh & McLennan Cos., Inc.      2.93  
American Express Co.      2.78  
Total      41.74  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Financials Technical LeadersTM Index     (9.07 )%      11.11     37.18     10.47     64.55     10.88     180.82       6.08     150.40
S&P 500® Financials Index     (3.00     9.59       31.61       10.24       62.79       12.95       238.03         3.37       67.38  
Fund                    
NAV Return     (9.63     10.45       34.73       9.80       59.59       10.15       162.89         5.33       124.12  
Market Price Return     (9.85     10.42       34.64       9.78       59.45       10.14       162.62         5.32       123.87  

 

 

 

  17  

 


 

Invesco DWA Financial Momentum ETF (PFI) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.82% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Financials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Financial Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  18  

 


 

 

PTH    Management’s Discussion of Fund Performance
   Invesco DWA Healthcare Momentum ETF (PTH)

 

As an index fund, the Invesco DWA Healthcare Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Healthcare Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the healthcare sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the healthcare sector for inclusion in the Index. Companies in the healthcare sector are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (22.18)%. On a net asset value (“NAV”) basis, the Fund returned (22.24)%. During the same time period, the

Index returned (21.72)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Health Care Index (the “Benchmark Index”) returned 9.16%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 65 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the healthcare sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection in the pharmaceuticals sub-industry.

For the fiscal year ended April 30, 2022, the healthcare supplies sub-industry contributed most significantly to the Fund’s return. The pharmaceuticals sub-industry detracted most significantly from the Fund’s return, followed by the biotechnology and life sciences tools & services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Moderna, Inc., a biotechnology company (no longer held at fiscal year-end), and Lantheus Holdings Inc., a healthcare supplies company (portfolio average weight of 0.62%). Positions that detracted most significantly from the Fund’s return during this period included Seelos Therapeutics, Inc., a pharmaceuticals company (no longer held at fiscal year-end), and Fulcrum Therapeutics, Inc., a pharmaceuticals company (portfolio average weight of 0.63%).

 

 

  19  

 


 

Invesco DWA Healthcare Momentum ETF (PTH) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Biotechnology      17.88  
Pharmaceuticals      15.04  
Life Sciences Tools & Services      14.62  
Health Care Facilities      13.59  
Managed Health Care      13.03  
Health Care Equipment      11.83  
Health Care Services      6.79  
Health Care Technology      4.27  
Health Care Supplies      2.95  
Money Market Funds Plus Other Assets Less Liabilities      0.00  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
UnitedHealth Group, Inc.      4.69  
Thermo Fisher Scientific, Inc.      4.59  
Danaher Corp.      4.35  
Edwards Lifesciences Corp.      4.18  
Anthem, Inc.      3.60  
Tenet Healthcare Corp.      3.53  
Eli Lilly and Co.      3.47  
Zoetis, Inc.      3.39  
Mettler-Toledo International, Inc.      2.98  
Lantheus Holdings, Inc.      2.95  
Total      37.73  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Healthcare Technical LeadersTM Index     (21.72 )%      16.68     58.85     17.81     126.96     15.06     306.54       11.58     449.29
S&P 500® Health Care Index     9.16       15.64       54.65       13.65       89.57       15.34       316.75         11.28       427.12  
Fund                    
NAV Return     (22.24     16.05       56.30       17.18       120.95       14.34       281.96         10.83       395.03  
Market Price Return     (22.18     16.08       56.41       17.17       120.84       14.33       281.60         10.83       394.70  

 

 

 

  20  

 


 

Invesco DWA Healthcare Momentum ETF (PTH) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.67% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Healthcare Technical LeadersTM Index performance is comprised of the performance of the Dynamic Healthcare Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  21  

 


 

 

PRN    Management’s Discussion of Fund Performance
   Invesco DWA Industrials Momentum ETF (PRN)

 

As an index fund, the Invesco DWA Industrials Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Industrials Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the industrials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the industrials sector for inclusion in the Index. Companies in the industrials sector are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing products and services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (11.64)%. On a net asset value (“NAV”) basis, the Fund returned (11.56)%. During the same time period, the

Index returned (11.03)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Industrials Index (the “Benchmark Index”) returned (5.25)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 71 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the industrials sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the trading companies & distributors sub-industry and most underweight in the aerospace & defense sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection and the Fund being underweight in the railroad sub-industry.

For the fiscal year ended April 30, 2022, the trading companies & distributors sub-industry contributed most significantly to the Fund’s return, followed by the trucking and aerospace & defense, respectively. The building products sub-industry detracted most significantly from the Fund’s return, followed by the industrial machinery sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Avis Budget Group, Inc., a trucking company (no longer held at fiscal year-end), and Veritiv Corp., a trading companies & distributors company (portfolio average weight of 1.18%). Positions that detracted most significantly from the Fund’s return during this period included Trex Company, Inc., a building products company (no longer held at fiscal year-end), and Sherwin-Williams Co., a specialty chemicals company (no longer held at fiscal year-end).

 

 

  22  

 


 

Invesco DWA Industrials Momentum ETF (PRN) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Trading Companies & Distributors      19.31  
Building Products      11.97  
Railroads      9.35  
Electrical Components & Equipment      8.81  
Construction & Engineering      7.84  
IT Consulting & Other Services      4.98  
Environmental & Facilities Services      4.81  
Diversified Support Services      4.80  
Industrial Machinery      3.92  
Research & Consulting Services      3.49  
Marine      3.03  
Sub-Industry Types Each Less than 3%      17.66  
Money Market Funds Plus Other Assets Less Liabilities      0.03  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
AMETEK, Inc.      5.61  
W.W. Grainger, Inc.      5.15  
Accenture PLC, Class A      4.98  
Union Pacific Corp.      4.92  
Cintas Corp.      4.80  
A.O. Smith Corp.      3.74  
Builders FirstSource, Inc.      3.47  
Quanta Services, Inc.      2.96  
Deere & Co.      2.91  
Carlisle Cos., Inc.      2.81  
Total      41.35  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Industrials Technical LeadersTM Index     (11.03 )%      13.41     45.86     12.67     81.58     13.08     241.86       9.96     337.54
S&P 500® Industrials Index     (5.25     8.79       28.77       9.16       54.97       11.95       209.18         8.52       256.75  
Fund                    
NAV Return     (11.56     12.75       43.33       11.99       76.12       12.31       219.26         9.13       289.20  
Market Price Return     (11.64     12.69       43.10       11.95       75.85       12.30       218.91         9.12       288.70  

 

 

 

  23  

 


 

Invesco DWA Industrials Momentum ETF (PRN) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Industrials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Industrials Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  24  

 


 

 

PTF    Management’s Discussion of Fund Performance
   Invesco DWA Technology Momentum ETF (PTF)

 

As an index fund, the Invesco DWA Technology Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Technology Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the technology sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the technology sector for inclusion in the Index. Companies in the technology sector are principally engaged in the business of providing technology-related products and services, including computer hardware and software, internet, electronics and semiconductors, and wireless communication technologies.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (17.33)%. On a net asset value (“NAV”) basis, the Fund returned (17.37)%. During the same time period, the Index returned (16.91)%. During the fiscal year, the Fund fully

replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Information Technology Index (the “Benchmark Index”) returned 1.89%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 76 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the technology sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the technology hardware storage & peripherals sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection and the Fund being overweight in the application software sub-industry.

For the fiscal year ended April 30, 2022, the systems software sub-industry contributed most significantly to the Fund’s return, followed by the internet services & infrastructure and IT consulting & other services sub-industries, respectively. The semiconductors sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included 3D Systems Corp., a technology hardware storage & peripherals company (no longer held at fiscal year-end) and EPam Systems, Inc., an application software company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Calix, Inc., a communications equipment (no longer held at fiscal year-end), and Lattice Semiconductor Corp., a semiconductors company (portfolio average weight of 3.56%).

 

 

  25  

 


 

Invesco DWA Technology Momentum ETF (PTF) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Semiconductors      29.24  
Technology Hardware, Storage & Peripherals      18.66  
Systems Software      10.62  
Semiconductor Equipment      6.35  
Application Software      6.33  
Technology Distributors      5.97  
Data Processing & Outsourced Services      4.75  
Sub-Industry Types Each Less than 3%      18.12  
Money Market Funds Plus Other Assets Less Liabilities      (0.04)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Apple, Inc.      6.49  
Monolithic Power Systems, Inc.      4.71  
Microsoft Corp.      3.62  
Palo Alto Networks, Inc.      3.60  
Lattice Semiconductor Corp.      3.56  
Fortinet, Inc.      3.40  
CDW Corp.      3.39  
HP, Inc.      3.34  
Synopsys, Inc.      3.32  
ON Semiconductor Corp.      3.29  
Total      38.72  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Technology Technical LeadersTM Index     (16.91 )%      18.71     67.28     21.88     168.91     16.73     369.59       11.21     421.85
S&P 500® Information Technology Index     1.89       22.85       85.41       23.19       183.70       19.36       486.83         14.90       766.46  
Fund                    
NAV Return     (17.37     18.02       64.40       21.17       161.21       16.00       341.25         10.49       371.74  
Market Price Return     (17.33     17.98       64.23       21.19       161.45       16.01       341.54         10.49       371.87  

 

 

 

  26  

 


 

Invesco DWA Technology Momentum ETF (PTF) (continued)

 

Fund Inception: October 12, 2006

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Technology Technical LeadersTM Index performance is comprised of the performance of the Dynamic Technology Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  27  

 


 

 

PUI    Management’s Discussion of Fund Performance
   Invesco DWA Utilities Momentum ETF (PUI)

 

As an index fund, the Invesco DWA Utilities Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Utilities Technical LeadersTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the utilities sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “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 intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the utilities sector for inclusion in the Index. Companies in the utilities sector are principally engaged in providing energy, water, natural gas or telecommunications services. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater; and provide land line telephone services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned 5.20%. On a net asset value (“NAV”) basis, the Fund returned 5.11%. During the same time period, the Index returned 5.72%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Utilities Index (the “Benchmark Index”) returned 10.12%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 29 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the utilities sector.

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

Relative to the Benchmark Index, the Fund was most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight in the water utilities sub-industry and the Fund’s stock selection in the multi-utilities sub-industry.

For the fiscal year ended April 30, 2022, the electric utilities sub-industry contributed most significantly to the Fund’s return. The electrical components & equipment sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included ONEOK, Inc., an oil & gas storage & transportation company (portfolio average weight of 3.87%), and Sempra Energy, a multi-utilities company (portfolio average weight of 3.78%). Positions that detracted most significantly from the Fund’s return during this period included Beam Global, an electrical components & equipment company (no longer held at fiscal year-end), and AES Corp. (The), an independent power producers & energy traders company (portfolio average weight of 2.51%).

 

 

  28  

 


 

Invesco DWA Utilities Momentum ETF (PUI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Electric Utilities      40.07  
Multi-Utilities      26.69  
Gas Utilities      9.85  
Water Utilities      9.13  
Oil & Gas Exploration & Production      4.71  
Independent Power Producers & Energy Traders      4.47  
Oil & Gas Storage & Transportation      3.30  
Construction & Engineering      1.69  
Money Market Funds Plus Other Assets Less Liabilities      0.09  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
EQT Corp.      4.71  
Xcel Energy, Inc.      4.13  
WEC Energy Group, Inc.      3.85  
Duke Energy Corp.      3.76  
DTE Energy Co.      3.75  
Evergy, Inc.      3.67  
NiSource, Inc.      3.63  
American Water Works Co., Inc.      3.63  
Sempra Energy      3.51  
Atmos Energy Corp.      3.48  
Total      38.12  

 

*

Excluding money market fund holdings.

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

    1 Year    

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Utilities Technical LeadersTM Index     5.72     6.25     19.93     8.23     48.53     11.26     190.64       8.84     305.02
S&P 500® Utilities Index     10.12       10.24       33.97       10.28       63.13       11.07       185.78         9.21       328.70  
Fund                    
NAV Return     5.11       5.63       17.84       7.60       44.21       10.58       173.44         8.10       261.92  
Market Price Return     5.20       5.61       17.79       7.58       44.09       10.60       173.82         8.11       262.21  

 

 

 

  29  

 


 

Invesco DWA Utilities Momentum ETF (PUI) (continued)

 

Fund Inception: October 26, 2005

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 current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.81% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Utilities Technical LeadersTM Index performance is comprised of the performance of the Dynamic Utilities IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2022.

 

-

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

 

 

  30  

 


 

 

PNQI    Management’s Discussion of Fund Performance
   Invesco NASDAQ Internet ETF (PNQI)

 

As an index fund, the Invesco NASDAQ Internet ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the NASDAQ CTA Internet IndexSM (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. (the “Index Provider”) compiles the Index, which is designed to track the performance of companies engaged in internet-related businesses that are listed on one of the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. Companies in the Index include companies whose primary business includes Internet-related services including, but not limited to, Internet software, Internet search engines, web hosting, website design or Internet retail commerce as determined by the Consumer Technology Association (CTA). The Fund employs a “full replication” methodology in seeking to track the Index, meaning that 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 April 30, 2022, on a market price basis, the Fund returned (42.81)%. On a net asset value (“NAV”) basis, the Fund returned (42.68)%. During the same time period, the Index returned (42.36)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the NASDAQ-100® Index (the “Benchmark Index”) returned (6.61)%. The Benchmark Index is an unmanaged, modified market-capitalization weighted index based on the average performance of approximately 100 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the overall U.S. stock market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that consists of companies engaged in internet-related businesses, whereas the Benchmark Index consists of approximately 100 of the largest non-financial companies listed on the NASDAQ Stock Market, which may include companies that are not engaged in internet related businesses.

Relative to the Benchmark Index, the Fund was most overweight in the interactive media & services sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight in and its security selection in the internet & direct marketing retail sub-

industry, followed by the Fund being overweight in the movies & entertainment sub-industry.

For the fiscal year ended April 30, 2022, the advertising sub-industry contributed most significantly to the Fund’s return. The internet & direct marketing retail sub-industry detracted most significantly from the Fund’s return, followed by the movies & entertainment sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Anaplan, Inc., an application software company (portfolio average weight of 0.28%), and Box, Inc., Class A, an application software company (portfolio average weight of 0.14%). Positions that detracted most significantly from the Fund’s return during this period included Netflix, Inc., a movies & entertainment company (portfolio average weight of 4.81%), and PayPal Holdings, Inc., a data processing & outsourced services company (portfolio average weight of 6.24%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Interactive Media & Services      22.87  
Internet & Direct Marketing Retail      17.84  
Application Software      12.85  
Movies & Entertainment      10.93  
Systems Software      9.08  
Hotels, Resorts & Cruise Lines      8.20  
Internet Services & Infrastructure      5.44  
Data Processing & Outsourced Services      3.94  
Trucking      3.18  
Interactive Home Entertainment      2.33  
Sub-Industry Types Each Less than 3%      3.32  
Money Market Funds Plus Other Assets Less Liabilities      0.02  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Meta Platforms, Inc., Class A      9.18  
Microsoft Corp.      8.97  
Alphabet, Inc., Class C      8.23  
Amazon.com, Inc.      7.82  
Walt Disney Co. (The)      7.26  
Adobe, Inc.      4.09  
salesforce.com, inc.      4.04  
Booking Holdings, Inc.      3.95  
Alibaba Group Holding Ltd., ADR      3.94  
PayPal Holdings, Inc.      3.80  
Total      61.28  

 

*

Excluding money market fund holdings.

 

 

  31  

 


 

Invesco NASDAQ Internet ETF (PNQI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

   

1 Year

   

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index         Average
Annualized
    Cumulative  
Nasdaq CTA Internet IndexSM     (42.36 )%      (0.02 )%      (0.05 )%      7.75     45.24     13.65     259.40       14.18     529.98
NASDAQ-100® Index     (6.61     19.22       69.46       19.27       141.37       18.11       428.15         15.84       670.22  
Fund                    
NAV Return     (42.68     (0.59     (1.77     7.14       41.18       13.05       240.90         13.56       484.50  
Market Price Return     (42.81     (0.62     (1.85     7.11       40.97       13.03       240.51         13.42       474.72  

 

Fund Inception: June 12, 2008

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 current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.60% 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.

 

 

  32  

 


 

Liquidity Risk Management Program

 

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Funds have adopted and implemented a liquidity risk management program (the “Program”). The Program is reasonably designed to assess and manage the Funds’ liquidity risk, which is the risk that the Funds could not meet redemption requests without significant dilution of remaining investors’ interests in the Funds. The Board of Trustees of the Funds (the “Board”) has appointed Invesco Capital Management LLC (“Invesco”), the Funds’ investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco and its affiliates.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Funds’ liquidity risk that takes into account, as relevant to the Funds’ liquidity risk: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements; (4) the relationship between the Funds’ portfolio liquidity and the way in which, and the prices and spreads at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants; and (5) the effect of the composition of baskets on the overall liquidity of each Fund’s portfolio. The Liquidity Rule also requires the classification of each Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. Each Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, a Fund may not acquire an investment if, immediately after the acquisition, over 15% of such Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of such Fund’s assets.

At a meeting held on March 15, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Funds and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

The Report stated, in relevant part, that during the Program Reporting Period:

 

   

The Program, as adopted and implemented, remained reasonably designed to assess and manage the Funds’ liquidity risk and was operated effectively to achieve that goal;

 

   

Each Fund’s investment strategy remained appropriate for an open-end fund;

 

   

Each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund;

 

   

The Funds did not breach the 15% limit on Illiquid Investments; and

 

   

The Funds primarily held Highly Liquid Investments and therefore have not adopted an HLIM.

 

  33  

 

 

 

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ)

April 30, 2022

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-99.95%

 

Aluminum-3.37%

   

Alcoa Corp.(b)

    93,117     $ 6,313,333  
   

 

 

 

Commodity Chemicals-14.23%

   

AdvanSix, Inc.(b)

    93,376       4,158,967  

Cabot Corp.(b)

    69,673       4,587,967  

LyondellBasell Industries N.V., Class A

    58,999       6,255,664  

Valvoline, Inc.

    154,034       4,656,448  

Westlake Corp.

    55,216       6,987,585  
   

 

 

 
      26,646,631  
   

 

 

 

Copper-2.70%

   

Freeport-McMoRan, Inc.

    124,586       5,051,962  
   

 

 

 

Diversified Chemicals-2.86%

   

Huntsman Corp.

    158,326       5,362,502  
   

 

 

 

Diversified Metals & Mining-2.88%

   

MP Materials Corp.(c)

    141,925       5,398,827  
   

 

 

 

Fertilizers & Agricultural Chemicals-18.91%

 

 

CF Industries Holdings, Inc.

    69,245       6,704,993  

Corteva, Inc.

    113,126       6,526,239  

FMC Corp.

    62,029       8,221,324  

Intrepid Potash, Inc.(c)

    91,976       7,043,522  

Mosaic Co. (The)

    110,973       6,926,935  
   

 

 

 
      35,423,013  
   

 

 

 

Forest Products-3.91%

   

Louisiana-Pacific Corp.

    113,508       7,323,536  
   

 

 

 

Gold-3.44%

   

Newmont Corp.

    88,498       6,447,079  
   

 

 

 

Oil & Gas Refining & Marketing-2.09%

 

 

Alto Ingredients, Inc.(b)(c)

    676,825       3,905,280  
   

 

 

 

Specialty Chemicals-10.65%

   

Avient Corp.

    110,739       5,452,788  

Celanese Corp.

    45,567       6,695,615  

Danimer Scientific, Inc.(b)(c)

    829,756       3,252,644  

Element Solutions, Inc.

    220,231       4,541,163  
   

 

 

 
      19,942,210  
   

 

 

 

Steel-34.91%

   

Allegheny Technologies, Inc.(b)(c)

    203,053       5,518,981  
        Shares         Value  

Steel-(continued)

   

Carpenter Technology Corp.

    124,057     $ 4,736,496  

Cleveland-Cliffs, Inc.(c)

    263,437       6,715,009  

Commercial Metals Co.(b)

    124,570       5,107,370  

Nucor Corp.(b)

    55,499       8,590,135  

Reliance Steel & Aluminum Co.

    37,947       7,522,993  

Ryerson Holding Corp.(b)

    123,171       4,533,924  

Steel Dynamics, Inc.

    77,392       6,636,364  

SunCoke Energy, Inc.

    465,613       3,873,900  

TimkenSteel Corp.(b)(c)

    312,285       6,454,931  

United States Steel Corp.

    186,451       5,684,891  
   

 

 

 
      65,374,994  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $177,214,774)

      187,189,367  
   

 

 

 

Money Market Funds-0.14%

   

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $273,111)

    273,111       273,111  

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.09%
(Cost $177,487,885)

      187,462,478  
   

 

 

 
Investments Purchased with Cash Collateral from from Securities on Loan

 

Money Market Funds-17.27%

 

Invesco Private Government Fund, 0.40%(d)(e)(f)

    9,705,723       9,705,723  

Invesco Private Prime Fund,
0.35%(d)(e)(f)

    22,636,353       22,636,353  
   

 

 

 

Total Investments Purchased with Cash Collateral
from Securities on Loan
(Cost $32,342,076)

 

    32,342,076  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-117.36%
(Cost $209,829,961)

 

    219,804,554  

OTHER ASSETS LESS LIABILITIES-(17.36)%

 

    (32,516,768
   

 

 

 

NET ASSETS-100.00%

    $ 187,287,786  
   

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at April 30, 2022.

(c) 

Non-income producing security.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

    Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from
Sales
 

Change in
Unrealized
Appreciation

  

Realized
Gain
(Loss)

   Value
April 30, 2022
   Dividend
Income
Investments in Affiliated Money Market Funds:                             
Invesco Government & Agency Portfolio, Institutional Class     $     127,943      $     1,916,236      $       (1,771,068)   $-    $          -      $     273,111      $     165

 

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

 

  34  

 

 

 

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ)–(continued)

April 30, 2022

    

 

 

     Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
  Value
April 30, 2022
   Dividend
Income
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund      $ 6,678,994      $ 108,437,733      $ (105,411,004 )     $ -      $ -     $ 9,705,723      $ 3,810 *
Invesco Private Prime Fund        10,018,491        195,733,654        (183,109,057 )       -        (6,735 )       22,636,353        19,633 *
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 
Total      $ 16,825,428      $ 306,087,623      $ (290,291,129 )     $ -      $ (6,735 )     $ 32,615,187      $ 23,608
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f)

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

 

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

 

  35  

 

 

 

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

April 30, 2022

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-100.10%

 

Apparel Retail-3.77%

   

Boot Barn Holdings, Inc.(b)

    9,760     $ 878,986  

Genesco, Inc.(b)(c)

    9,350       579,980  
   

 

 

 
      1,458,966  
   

 

 

 

Apparel, Accessories & Luxury Goods-1.20%

 

 

G-III Apparel Group Ltd.(b)(c)

    17,496       463,294  
   

 

 

 

Automotive Retail-11.91%

   

AutoZone, Inc.(b)

    485       948,403  

Group 1 Automotive, Inc.(c)

    4,520       787,113  

O’Reilly Automotive, Inc.(b)

    3,452       2,093,810  

Penske Automotive Group, Inc.(c)

    7,452       781,119  
   

 

 

 
      4,610,445  
   

 

 

 

Broadcasting-5.37%

   

Gray Television, Inc.(c)

    18,440       341,509  

Nexstar Media Group, Inc., Class A

    6,042       957,174  

Paramount Global, Class B

    26,771       779,571  
   

 

 

 
      2,078,254  
   

 

 

 

Casinos & Gaming-6.85%

   

Boyd Gaming Corp.

    12,513       758,038  

Churchill Downs, Inc.

    2,830       574,320  

Golden Entertainment, Inc.(b)

    17,783       852,873  

Monarch Casino & Resort, Inc.(b)(c)

    6,683       468,812  
   

 

 

 
      2,654,043  
   

 

 

 

Department Stores-6.16%

   

Dillard’s, Inc., Class A

    7,857       2,387,035  
   

 

 

 

Distributors-4.08%

   

Funko, Inc., Class A(b)

    33,149       539,997  

LKQ Corp.

    20,983       1,041,387  
   

 

 

 
      1,581,384  
   

 

 

 

Diversified Support Services-1.23%

   

KAR Auction Services, Inc.(b)(c)

    32,520       476,743  
   

 

 

 

Health Care Distributors-2.68%

   

McKesson Corp.

    3,348       1,036,574  
   

 

 

 

Health Care Services-2.19%

   

CVS Health Corp.

    8,808       846,713  
   

 

 

 

Home Improvement Retail-6.38%

   

Home Depot, Inc. (The)

    4,406       1,323,562  

Lowe’s Cos., Inc.

    5,794       1,145,648  
   

 

 

 
      2,469,210  
   

 

 

 

Homebuilding-3.15%

   

Skyline Champion Corp.(b)

    12,531       639,582  

Tri Pointe Homes, Inc.(b)

    28,101       580,848  
   

 

 

 
      1,220,430  
   

 

 

 

Homefurnishing Retail-1.70%

   

Bed Bath & Beyond, Inc.(b)(c)

    48,258       656,791  
   

 

 

 

Hotels, Resorts & Cruise Lines-11.06%

 

Hilton Grand Vacations, Inc.(b)

    13,634       638,480  

Hyatt Hotels Corp., Class A

    9,563       908,102  

Marriott International, Inc., Class A(b)

    5,381       955,235  
        Shares          Value  

Hotels, Resorts & Cruise Lines-(continued)

 

Playa Hotels & Resorts N.V.(b)

    67,772      $ 639,768  

Wyndham Hotels & Resorts, Inc.

    12,960        1,139,962  
    

 

 

 
       4,281,547  
    

 

 

 

Hypermarkets & Super Centers-7.11%

 

BJ’s Wholesale Club Holdings, Inc.(b)

    18,496        1,190,218  

Costco Wholesale Corp.

    2,942        1,564,320  
    

 

 

 
       2,754,538  
    

 

 

 

Leisure Facilities-6.35%

 

SeaWorld Entertainment, Inc.(b)

    27,457        1,851,700  

Six Flags Entertainment Corp.(b)

    15,844        606,350  
    

 

 

 
       2,458,050  
    

 

 

 

Movies & Entertainment-3.66%

 

Liberty Media Corp.-Liberty Formula One, Class A(b)(c)

    7,451        427,837  

Live Nation Entertainment, Inc.(b)(c)

    9,439        989,962  
    

 

 

 
       1,417,799  
    

 

 

 

Restaurants-1.61%

 

Dave & Buster’s Entertainment, Inc.(b)

    13,683        622,577  
    

 

 

 

Specialized REITs-1.62%

 

Lamar Advertising Co., Class A

    5,692        628,454  
    

 

 

 

Specialty Stores-10.03%

 

Signet Jewelers Ltd.

    26,158        1,836,292  

Tractor Supply Co.

    5,492        1,106,363  

Ulta Beauty, Inc.(b)

    2,368        939,622  
    

 

 

 
       3,882,277  
    

 

 

 

Trading Companies & Distributors-1.99%

 

Beacon Roofing Supply, Inc.(b)(c)

    12,922        770,539  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $42,995,367)

 

     38,755,663  
    

 

 

 
Money Market Funds-0.36%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $140,012)

    140,012        140,012  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.46%
(Cost $43,135,379)

 

     38,895,675  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-11.69%

 

Invesco Private Government Fund,
0.40%(d)(e)(f)

    1,359,112        1,359,112  

Invesco Private Prime Fund, 0.35%(d)(e)(f)

    3,168,189        3,168,189  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $4,527,301)

       4,527,301  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-112.15%
(Cost $47,662,680)

 

     43,422,976  

OTHER ASSETS LESS LIABILITIES-(12.15)%

 

     (4,705,345
    

 

 

 

NET ASSETS-100.00%

 

   $ 38,717,631  
    

 

 

 

 

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

 

  36  

 

 

 

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)–(continued)

April 30, 2022

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

     Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2022
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 161,516      $ 1,453,860      $ (1,475,364 )     $ -     $ -     $ 140,012      $ 101
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        8,926,332        67,481,561        (75,048,781 )       -       -       1,359,112        1,370 *
Invesco Private Prime Fund        13,869,648        135,997,542        (146,694,624 )       (1 )       (4,376 )       3,168,189        12,144 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 22,957,496      $ 204,932,963      $ (223,218,769 )     $ (1 )     $ (4,376 )     $ 4,667,313      $ 13,615
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f)

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

 

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

 

  37  

 

 

 

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL)

April 30, 2022

Schedule of Investments(a)

 

        Shares          Value  
Common Stocks & Other Equity Interests-100.00%

 

Agricultural Products-7.15%

    

Archer-Daniels-Midland Co.

    40,592      $ 3,635,420  

Bunge Ltd.

    30,787        3,482,625  
    

 

 

 
       7,118,045  
    

 

 

 

Brewers-1.98%

    

Molson Coors Beverage Co., Class B

    36,351        1,968,043  
    

 

 

 

Distillers & Vintners-6.62%

    

Brown-Forman Corp., Class B

    42,810        2,887,106  

Constellation Brands, Inc., Class A

    8,473        2,085,121  

MGP Ingredients, Inc.(b)

    17,723        1,618,642  
    

 

 

 
       6,590,869  
    

 

 

 

Education Services-2.73%

    

Adtalem Global Education, Inc.(b)(c)

    45,196        1,324,695  

Chegg, Inc.(b)(c)

    56,138        1,388,854  
    

 

 

 
       2,713,549  
    

 

 

 

Food Distributors-12.06%

    

Andersons, Inc. (The)

    36,552        1,836,007  

Performance Food Group Co.(c)

    66,826        3,291,180  

SpartanNash Co.

    49,968        1,712,903  

Sysco Corp.

    28,287        2,417,973  

US Foods Holding Corp.(c)

    73,000        2,746,260  
    

 

 

 
       12,004,323  
    

 

 

 

Food Retail-12.99%

    

Albertsons Cos., Inc., Class A(b)

    89,596        2,802,563  

Casey’s General Stores, Inc.

    9,925        1,997,903  

Grocery Outlet Holding Corp.(b)(c)

    46,808        1,576,025  

Ingles Markets, Inc., Class A

    18,314        1,705,400  

Kroger Co. (The)

    52,621        2,839,429  

Sprouts Farmers Market, Inc.(c)

    67,553        2,013,079  
    

 

 

 
       12,934,399  
    

 

 

 

Home Furnishings-2.83%

    

Tempur Sealy International, Inc.

    103,820        2,814,560  
    

 

 

 

Household Products-9.16%

    

Church & Dwight Co., Inc.

    36,703        3,580,745  

Procter & Gamble Co. (The)

    23,144        3,715,769  

Spectrum Brands Holdings, Inc.(b)

    21,444        1,824,241  
    

 

 

 
       9,120,755  
    

 

 

 

Industrial Machinery-2.11%

    

Snap-on, Inc.

    9,892        2,101,951  
    

 

 

 

Packaged Foods & Meats-16.58%

    

B&G Foods, Inc.(b)

    61,512        1,656,518  

Cal-Maine Foods, Inc.

    30,080        1,616,198  

Freshpet, Inc.(b)(c)

    23,792        2,220,983  

Hershey Co. (The)

    14,716        3,322,431  

Mondelez International, Inc., Class A

    39,422        2,541,931  

Simply Good Foods Co. (The)(c)

    49,586        2,065,257  

Tyson Foods, Inc., Class A

    33,035        3,077,541  
    

 

 

 
       16,500,859  
    

 

 

 
    Shares      Value  

Personal Products-5.57%

    

Beauty Health Co. (The)(b)(c)

    85,209      $ 1,116,238  

Estee Lauder Cos., Inc. (The), Class A

    11,844        3,127,527  

Inter Parfums, Inc.(b)

    15,884        1,298,199  
    

 

 

 
       5,541,964  
    

 

 

 

Soft Drinks-11.23%

    

Celsius Holdings, Inc.(b)(c)

    25,951        1,349,452  

Coca-Cola Consolidated, Inc.

    3,381        1,492,711  

Keurig Dr Pepper, Inc.

    98,568        3,686,443  

National Beverage Corp.(b)

    31,308        1,380,057  

PepsiCo, Inc.

    19,021        3,266,096  
    

 

 

 
       11,174,759  
    

 

 

 

Specialized Consumer Services-7.12%

    

Carriage Services, Inc.

    28,007        1,201,220  

European Wax Center, Inc., Class A(b)

    48,809        1,339,807  

H&R Block, Inc.(b)

    82,429        2,148,924  

Service Corp. International

    36,529        2,396,668  
    

 

 

 
       7,086,619  
    

 

 

 

Tobacco-1.87%

    

Vector Group Ltd.

    146,770        1,866,915  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $100,202,358)

 

     99,537,610  
    

 

 

 
Money Market Funds-0.02%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $24,532)

    24,532        24,532  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral
from securities on loan)-100.02%
(Cost $100,226,890)

 

     99,562,142  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-17.56%

 

Invesco Private Government Fund, 0.40%(d)(e)(f)

    5,383,930        5,383,930  

Invesco Private Prime Fund,
0.35%(d)(e)(f)

    12,091,655        12,091,655  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $17,474,102)

 

     17,475,585  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-117.58%
(Cost $117,700,992)

 

     117,037,727  

OTHER ASSETS LESS LIABILITIES-(17.58)%

 

     (17,497,515
    

 

 

 

NET ASSETS-100.00%

     $ 99,540,212  
    

 

 

 

 

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

 

  38  

 

 

 

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL)–(continued)

April 30, 2022

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at April 30, 2022.

(c) 

Non-income producing security.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

     Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
  Value
April 30, 2022
   Dividend
Income
Investments in Affiliated Money
Market Funds:
                                
Invesco Government & Agency
Portfolio, Institutional Class
     $ 118,265      $ 2,876,869      $ (2,970,602 )     $ -      $ -     $ 24,532      $ 118
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund        5,502,892        51,442,665        (51,561,627 )       -        -       5,383,930        3,924 *
Invesco Private Prime Fund        8,254,338        103,338,130        (99,495,142 )       1,483        (7,154 )       12,091,655        14,194 *
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 
Total      $ 13,875,495      $ 157,657,664      $ (154,027,371 )     $ 1,483      $ (7,154 )     $ 17,500,117      $ 18,236
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f)

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

 

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

 

  39  

 

 

 

 


 

Invesco DWA Energy Momentum ETF (PXI)

April 30, 2022

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-99.99%

 

Coal & Consumable Fuels-5.79%

   

Arch Resources, Inc.(b)

    41,677     $ 6,934,219  

CONSOL Energy, Inc.(c)

    147,095       6,994,367  
   

 

 

 
      13,928,586  
   

 

 

 

Integrated Oil & Gas-4.82%

   

Chevron Corp.

    38,274       5,996,388  

Occidental Petroleum Corp.

    101,536       5,593,618  
   

 

 

 
      11,590,006  
   

 

 

 

Oil & Gas Drilling-4.77%

   

Noble Corp.(b)(c)

    100,653       3,213,850  

Patterson-UTI Energy, Inc.

    259,686       4,269,238  

Valaris Ltd.(c)

    78,866       4,002,450  
   

 

 

 
      11,485,538  
   

 

 

 

Oil & Gas Equipment & Services-11.35%

 

 

Archrock, Inc.

    373,975       3,257,322  

Halliburton Co.

    165,800       5,905,796  

NexTier Oilfield Solutions, Inc.(c)

    463,019       5,107,100  

ProPetro Holding Corp.(c)

    270,285       3,821,830  

US Silica Holdings, Inc.(c)

    231,587       4,302,887  

Weatherford International PLC(c)

    152,673       4,928,284  
   

 

 

 
      27,323,219  
   

 

 

 

Oil & Gas Exploration & Production-59.44%

 

 

Antero Resources Corp.(b)(c)

    293,304       10,324,301  

APA Corp.

    184,861       7,566,361  

ConocoPhillips

    67,249       6,423,624  

Denbury, Inc.(b)(c)

    53,520       3,424,210  

Devon Energy Corp.

    130,604       7,597,235  

Diamondback Energy, Inc.

    47,643       6,013,976  

Earthstone Energy, Inc., Class A(b)(c)

    305,568       4,122,112  

EOG Resources, Inc.

    39,804       4,647,515  

Hess Corp.

    53,286       5,492,188  

Kosmos Energy Ltd. (Ghana)(c)

    863,780       5,839,153  

Magnolia Oil & Gas Corp., Class A(b)

    187,829       4,365,146  

Marathon Oil Corp.

    272,422       6,788,756  

Matador Resources Co.(b)

    179,786       8,777,153  

Murphy Oil Corp.(b)

    158,483       6,035,033  

Northern Oil and Gas, Inc.

    178,405       4,456,557  

Oasis Petroleum, Inc.

    30,269       4,015,486  

Ovintiv, Inc.

    185,244       9,482,640  

PDC Energy, Inc.

    124,579       8,688,139  

Pioneer Natural Resources Co.(b)

    20,551       4,777,491  

Range Resources Corp.(c)

    321,716       9,632,177  
        Shares          Value  

Oil & Gas Exploration & Production-(continued)

 

  

SM Energy Co.

    232,014      $ 8,243,457  

Texas Pacific Land Corp.(b)

    4,649        6,353,323  
    

 

 

 
       143,066,033  
    

 

 

 

Oil & Gas Refining & Marketing-4.31%

 

  

Marathon Petroleum Corp.

    64,575        5,634,815  

Vertex Energy, Inc.(b)(c)

    499,030        4,745,775  
    

 

 

 
       10,380,590  
    

 

 

 

Oil & Gas Storage & Transportation-8.01%

 

  

Cheniere Energy, Inc.

    75,176        10,209,653  

Targa Resources Corp.

    123,684        9,079,642  
    

 

 

 
       19,289,295  
    

 

 

 

Steel-1.50%

    

Warrior Met Coal, Inc.

    106,235        3,619,426  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $201,878,562)

 

     240,682,693  
    

 

 

 
Money Market Funds-0.10%

 

Invesco Government & Agency Portfolio, Institutional Class,
0.35%(d)(e)
(Cost $249,928)

    249,928        249,928  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.09%
(Cost $202,128,490)

 

     240,932,621  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-18.59%

 

Invesco Private Government Fund, 0.40%(d)(e)(f)

    13,426,783        13,426,783  

Invesco Private Prime Fund,
0.35%(d)(e)(f)

    31,312,864        31,312,864  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $44,739,242)

 

     44,739,647  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-118.68%
(Cost $246,867,732)

 

     285,672,268  

OTHER ASSETS LESS LIABILITIES-(18.68)%

 

     (44,969,661
    

 

 

 

NET ASSETS-100.00%

     $ 240,702,607  
    

 

 

 

 

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

 

  40  

 

 

 

 


 

Invesco DWA Energy Momentum ETF (PXI)–(continued)

April 30, 2022

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at April 30, 2022.

(c) 

Non-income producing security.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

     Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
  Value
April 30, 2022
   Dividend
Income
Investments in Affiliated Money
Market Funds:
                                
Invesco Government & Agency
Portfolio, Institutional Class
     $ 199,021      $ 3,579,307      $ (3,528,400 )     $ -      $ -     $ 249,928      $ 153
Investments Purchased with Cash
Collateral from Securities on Loan:
                                
Invesco Private Government Fund        9,115,654        117,492,758        (113,181,629 )       -        -       13,426,783        7,089 *
Invesco Private Prime Fund        13,673,482        224,102,982        (206,455,830 )       405        (8,175 )       31,312,864        25,715 *
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 
Total      $ 22,988,157      $ 345,175,047      $ (323,165,859 )     $ 405      $ (8,175 )     $ 44,989,575      $ 32,957
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2022.

(f)

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

 

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

 

  41  

 

 

 

 


 

Invesco DWA Financial Momentum ETF (PFI)

April 30, 2022

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-99.97%

 

Asset Management & Custody Banks-6.54%

 

 

Ameriprise Financial, Inc.

    15,291     $ 4,059,608  

Ares Management Corp., Class A

    21,773       1,441,808  
   

 

 

 
      5,501,416  
   

 

 

 

Consumer Finance-2.78%

   

American Express Co.

    13,385       2,338,493  
   

 

 

 

Diversified Banks-2.16%

   

Bank of America Corp.

    50,896       1,815,969  
   

 

 

 

Diversified Real Estate Activities-0.88%

 

 

St. Joe Co. (The)

    13,896       739,406  
   

 

 

 

Diversified REITs-1.45%

   

DigitalBridge Group, Inc.(b)

    175,655       1,222,559  
   

 

 

 

Financial Exchanges & Data-5.13%

   

Intercontinental Exchange, Inc.

    15,490       1,793,897  

Nasdaq, Inc.

    16,012       2,519,808  
   

 

 

 
      4,313,705  
   

 

 

 

Hotel & Resort REITs-1.97%

   

Ryman Hospitality Properties, Inc.(b)

    17,768       1,660,953  
   

 

 

 

Industrial REITs-10.26%

   

First Industrial Realty Trust, Inc.

    33,411       1,937,838  

Prologis, Inc.

    22,941       3,677,213  

Rexford Industrial Realty, Inc.

    38,718       3,021,553  
   

 

 

 
      8,636,604  
   

 

 

 

Insurance Brokers-8.40%

   

Aon PLC, Class A

    8,088       2,329,263  

Brown & Brown, Inc.

    36,688       2,273,922  

Marsh & McLennan Cos., Inc.

    15,229       2,462,530  
   

 

 

 
      7,065,715  
   

 

 

 

Investment Banking & Brokerage-11.78%

 

 

B. Riley Financial, Inc.(c)

    25,962       1,172,444  

LPL Financial Holdings, Inc.

    24,027       4,513,952  

Morgan Stanley

    23,902       1,926,262  

Raymond James Financial, Inc.

    23,604       2,300,446  
   

 

 

 
      9,913,104  
   

 

 

 

Mortgage REITs-2.83%

   

Arbor Realty Trust, Inc.(c)

    75,109       1,284,364  

Ready Capital Corp.

    75,477       1,099,700  
   

 

 

 
      2,384,064  
   

 

 

 

Property & Casualty Insurance-5.20%

   

American Financial Group, Inc.

    9,710       1,344,641  

Assured Guaranty Ltd.

    18,258       1,006,928  

Kinsale Capital Group, Inc.

    9,146       2,027,577  
   

 

 

 
      4,379,146  
   

 

 

 

Regional Banks-14.01%

   

Bancorp, Inc. (The)(b)

    30,707       696,742  

Fifth Third Bancorp

    45,125       1,693,541  

First Bancorp

    99,716       1,357,135  

Lakeland Financial Corp.(c)

    9,796       713,345  

Meta Financial Group, Inc.

    12,366       539,776  

Metropolitan Bank Holding Corp.(b)

    8,221       732,080  
        Shares          Value  

Regional Banks-(continued)

    

Pinnacle Financial Partners, Inc.

    17,017      $ 1,319,668  

ServisFirst Bancshares, Inc.

    10,248        823,119  

Signature Bank

    8,558        2,073,176  

Synovus Financial Corp.

    20,556        853,896  

Wintrust Financial Corp.

    11,351        991,169  
    

 

 

 
       11,793,647  
    

 

 

 

Residential REITs-10.18%

    

Independence Realty Trust, Inc.

    100,378        2,736,305  

NexPoint Residential Trust, Inc.

    7,912        705,434  

Sun Communities, Inc.

    29,211        5,128,575  
    

 

 

 
       8,570,314  
    

 

 

 

Retail REITs-1.17%

    

SITE Centers Corp.

    62,129        987,851  
    

 

 

 

Specialized Finance-0.96%

    

A-Mark Precious Metals, Inc.

    10,213        804,784  
    

 

 

 

Specialized REITs-10.62%

    

CubeSmart

    98,192        4,665,102  

Gladstone Land Corp.(c)

    21,795        793,338  

Life Storage, Inc.

    15,518        2,055,980  

National Storage Affiliates Trust

    25,182        1,425,301  
    

 

 

 
       8,939,721  
    

 

 

 

Thrifts & Mortgage Finance-3.65%

    

Mr. Cooper Group, Inc.(b)

    39,782        1,788,997  

Walker & Dunlop, Inc.

    10,724        1,284,306  
    

 

 

 
       3,073,303  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $89,508,272)

 

     84,140,754  
    

 

 

 
Money Market Funds-0.23%

 

Invesco Government & Agency Portfolio, Institutional Class,
0.35%(d)(e)
(Cost $196,176)

    196,176        196,176  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.20%
(Cost $89,704,448)

 

     84,336,930  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-3.76%

 

Invesco Private Government Fund, 0.40%(d)(e)(f) .

    949,782        949,782  

Invesco Private Prime Fund,
0.35%(d)(e)(f)

    2,214,095        2,214,095  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,163,877)

 

     3,163,877  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-103.96%
(Cost $92,868,325)

 

     87,500,807  

OTHER ASSETS LESS LIABILITIES-(3.96)%

 

     (3,331,134
    

 

 

 

NET ASSETS-100.00%

     $ 84,169,673  
    

 

 

 

 

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

 

  42  

 

 

 

 


 

Invesco DWA Financial Momentum ETF (PFI)–(continued)

April 30, 2022

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

     Value
April 30, 2021
   Purchases
at Cost