Domestic Equity

As the war in Ukraine continued and corporate earnings in high-profile names like Netflix reported slowing growth and profits, the equity markets sold off for much of the second quarter of 2022 amid substantial inflation, rising interest rates and an increasing likelihood of a US recession. Driven by higher food and energy prices, the Consumer Price Index (CPI) rose 8.6% for the 12 months ended May 2022.¹ Oil prices peaked near $122 per barrel in early June, resulting in skyrocketing gasoline prices; the national average price reached a record high above $5 per gallon in early June.² To tame inflation, the US Federal Reserve (the Fed) raised the benchmark federal funds rate three more times, by 0.50% in May, by 0.75% in June and another 0.75% in July, which represented the largest series of increases in nearly 30 years.³ US equity markets rose in July and August until Fed chairman Jerome Powell’s hawkish comments at an economic policy symposium held in Jackson Hole, Wyoming which sparked a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.³

After experiencing a sharp drop in September 2022, US equity markets rebounded in October and November, despite mixed data on the economy and corporate earnings. However, the Fed’s message of continued rate hikes until data shows inflation meaningfully declining, sent markets lower in December. As energy prices declined, the rate of inflation slowed modestly in the fourth quarter. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target benchmark federal funds rate by 0.75% in November and by 0.50% in December.³

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff, as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the likelihood of a recession and the risk of a deeper recession than initially anticipated. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread to other sectors sent investors to safe haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the federal funds rate by just 0.25% in February and March, a slower pace than in 2022.³ The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil. Markets stabilized in April due to milder inflation data and better-than-expected corporate earnings. For the 12 months ending March 31, 2023, the CPI came in at 5%, the smallest 12-month increase since the period ending May 2021.¹

The March month-over-month CPI rose by 0.1%, a decline from an increase of 0.4% in February.¹ The labor market remained tight and the unemployment rate held at a historically low 3.5%.² As corporate earnings season got underway, a number of companies, including some big tech names provided optimistic future guidance.

In this environment, US stocks for the fiscal year ended April 30, 2023, had returns of 2.66%, as measured by the S&P 500^® Index.⁴

 

1	Source: US Bureau of Labor Statistics

2	Source: Bloomberg LP

3	Source: US Federal Reserve

4	Source: Lipper Inc.

Global Equity

Global equity markets declined at the beginning of the fiscal year as record inflation, rising interest rates, recession fears and Russia’s invasion of Ukraine led to generally weaker consumer sentiment around the globe. To tame inflation, Western central banks raised interest rates, which was in contrast to some central banks in the East, that lowered their policy rate or kept rates the same. Inflation headwinds continued into the third quarter of 2022, with several central banks continuing to raise interest rates to combat inflation.

Global equity markets posted gains for the fourth quarter of 2022, after better inflation data sparked a rally in October and November. However, investor sentiment worsened in December after central banks signaled continued interest rate hikes into 2023, as inflation remained above target levels. International stocks outperformed US stocks, led by results in the UK and the rest of Europe. Emerging market equities also posted gains for the fourth quarter, driven by China, which eased its zero-COVID-19 policy and started to reopen.

For the first quarter of 2023, global equity markets managed to deliver gains despite volatility and a banking crisis. January’s rally gave way to mixed global equity results in February, as inflation appeared more persistent than expected, boosting expectations that interest rates may stay higher for longer. The quarter’s largest shock came in March as the failure of two US regional banks, Silicon Valley Bank and Signature Bank, along with the subsequent UBS takeover of Credit Suisse, led to a selloff in US and European financial stocks. Amid the banking turmoil, some global central banks continued to raise interest rates to fight inflation. Though they lagged international developed market equities, emerging market equities also delivered gains for the quarter.

In April 2023, developed market equities posted a modest gain supported by positive economic data, while emerging market equities declined for the month. Within emerging markets, the Chinese equity market was negatively affected by renewed geopolitical tensions between the US and China. For the fiscal year ended April 30, 2023, developed market equities posted a positive return, outperforming emerging market equities, which ended the period in negative territory.

As an index fund, the Invesco Aerospace & Defense ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the SPADE^® Defense 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, SPADE Indexes LLC (the “Index Provider”) compiles, maintains, and calculates the Index, which is composed of common stocks of companies that are systematically important to the defense sector and are involved with the development, manufacture, operation and support of U.S. defense, military, national/homeland security, and government space operations. These may include, for example, companies that provide the following products or services: military aircraft, naval vessels, armored vehicles, helicopters, drones and remotely piloted vehicles, missiles and missile defense, command and control, secure communications, battlespace awareness, intelligence and reconnaissance, and space systems, as well as national/homeland security activities including border security, biometric screening systems, and military cybersecurity efforts. 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, 2023, on a market price basis, the Fund returned 11.55%. On a net asset value (“NAV”) basis, the Fund returned 11.51%. During the same time period, the Index returned 11.89%. 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 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 Composite 1500^® Aerospace & Defense Index (the “Benchmark Index”) returned 12.00%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 22 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors due primarily to its exposure to the aerospace and defense industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that limits its constituents to companies that are involved in U.S. defense, military, homeland security and space operations, whereas the Benchmark Index includes companies that are involved in the commercial aerospace industry as well.

Relative to the Benchmark Index, the Fund was most overweight in the research & consulting services sub-industry and most underweight in the aerospace & defense sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s

underperformance relative to the Benchmark Index during that period can be attributed to security selection in the aerospace & defense sub-industry.

For the fiscal year ended April 30, 2023, the aerospace & defense sub-industry contributed most significantly to the Fund’s return, followed by the industrial conglomerates and the research & consulting services sub-industries, respectively. The metal, glass & plastic containers sub-industry was the greatest detractor during this period, followed by the IT consulting & other services sub-industry and the application software sub-industry, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included General Electric Company, an industrial conglomerates company (portfolio average weight of 2.47%) and Boeing Company, an aerospace & defense company (portfolio average weight of 6.95%). Positions that detracted most significantly from the Fund’s return during this period included L3 Harris Technologies Inc., an aerospace & defense company (portfolio average weight of 5.07%) and Spirit AeroSystems Holdings, Inc. Class A., an aerospace & defense company (portfolio average weight of 0.95%).

 

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Aerospace & Defense			70.22
Professional Services			10.20
Industrial Conglomerates			9.63
Machinery			3.17
Industry Types Each Less Than 3%			6.79
Money Market Funds Plus Other Assets Less Liabilities			(0.01)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Boeing Co. (The)			6.57
Raytheon Technologies Corp.			6.54
Northrop Grumman Corp.			6.53
Lockheed Martin Corp.			6.24
General Dynamics Corp.			4.98
Honeywell International, Inc.			4.86
General Electric Co.			4.77
L3Harris Technologies, Inc.			4.45
Axon Enterprise, Inc.			3.78
TransDigm Group, Inc.			3.62
Total			52.34

 

*	Excluding money market fund holdings.

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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of approximately 100 securities from an eligible universe of approximately 1,000 securities of the largest constituents by float-adjusted market capitalization within the NASDAQ US Benchmark IndexTM, a market capitalization-weighted index designed to track the performance of the U.S. equity market.

The Index Provider selects securities for the Index pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength or “momentum” characteristics. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period, or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price 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 index.

After giving each eligible security a momentum score, the Index Provider selects approximately 100 securities with the highest momentum scores from the universe of eligible securities 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 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, 2023, on a market price basis, the Fund returned 1.52%. On a net asset value (“NAV”) basis, the Fund returned 1.52%. During the same time period, the Index returned 2.15%. 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 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 Russell 3000^® Growth Index returned 2.25%.

For the fiscal year ended April 30, 2023, the industrials sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and information technology sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the materials and real estate sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included O’Reilly Automotive, Inc., a consumer discretionary company (portfolio average weight of 3.03%) and Cadence Design Systems, Inc., an information technology company (portfolio average weight of 2.05%). Positions that detracted most significantly from the Fund’s return during this period included R1 RCM Inc., a health care company (no longer held at fiscal year-end) and Alcoa Corporation, a materials company (no longer held at fiscal year-end).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Information Technology			24.14
Industrials			23.99
Consumer Discretionary			15.05
Financials			10.71
Health Care			10.61
Energy			6.15
Materials			4.78
Consumer Staples			3.23
Sector Types Each Less Than 3%			1.38
Money Market Funds Plus Other Assets Less Liabilities			(0.04)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
O’Reilly Automotive, Inc.			3.31
Mastercard, Inc., Class A			3.03
Copart, Inc.			2.77
ANSYS, Inc.			2.71
Cadence Design Systems, Inc.			2.62
Mettler-Toledo International, Inc.			2.29
Old Dominion Freight Line, Inc.			2.29
Danaher Corp.			2.11
TransDigm Group, Inc.			2.10
Amphenol Corp., Class A			2.05
Total			25.28

 

*	Excluding money market fund holdings.

Fund Inception: March 1, 2007

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.62%. 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® Technical Leaders Index is comprised of price only returns (which reflects no dividends paid by the component companies of the Index) from Fund inception through the conversion date, December 31, 2013, and total returns (which reflects dividends paid by the component companies of the Index) following the conversion date through April 30, 2023.

 

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

As an index fund, the Invesco Global Listed Private Equity ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Red Rocks Global Listed Private Equity Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities (including American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”)) that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Red Rocks Capital LLC (the “Index Provider”) compiles and maintains the Index, which is composed of securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies, master limited partnerships and other vehicles that are listed on a nationally recognized exchange, all of whose principal businesses are to invest in, lend capital to, or provide services to privately held companies.

The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (5.73)%. On a net asset value (“NAV”) basis, the Fund returned (5.65)%. During the same time period, the Index returned (5.58)%. 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 expenses that the Fund incurred during the period, partially offset by a reversion of impacts from foreign fair valuation triggers.

During the same time period, the MSCI All Country World Index (Net) (the “Benchmark Index”) returned 2.06%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,884 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 global equity markets.

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, 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 capital markets industry and most underweight in the banks industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the capital markets and financial services industry.

For the fiscal year ended April 30, 2023, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the trading companies and distributors industry.

The capital markets industry detracted most significantly from the Fund’s return, followed by the interactive media & services and financial services industries.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included 3i Group plc., a capital markets company (portfolio average weight of 5.34%) and Melrose Industries PLC., a aerospace & defense company (portfolio average weight of 4.62%). Positions that detracted most significantly from the Fund’s return during this period included EQT AB, a capital markets company (portfolio average weight of 4.60%) and IAC/InterActiveCorp., an interactive media & services company (portfolio average weight of 4.60%).

 

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Capital Markets			53.89
Closed-End Funds			16.48
Financial Services			15.51
Aerospace & Defense			5.22
Industry Types Each Less Than 3%			6.71
Money Market Funds Plus Other Assets Less Liabilities			2.19
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
3i Group PLC			5.83
Melrose Industries PLC			5.22
Partners Group Holding AG			5.02
Blackstone, Inc., Class A			4.81
KKR & Co., Inc., Class A			4.57
EQT AB			4.56
Eurazeo SE			4.48
Sofina S.A.			4.05
Carlyle Group, Inc. (The)			3.97
TPG, Inc.			3.79
Total			46.30

 

*	Excluding money market fund holdings.

Fund Inception: October 24, 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, 2025. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 1.34%, including acquired fund fees and expenses of 0.69%. 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—Red Rocks Global Listed Private Equity Index is comprised of the Red Rocks Capital Listed Private Equity Index from Fund inception until September 30, 2009, followed by the performance of the Red Rocks Global Listed Private Equity Index from September 30, 2009 through April 30, 2023.

 

-	Net returns reflect invested dividends net of withholding taxes.

 

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

As an index fund, the Invesco Golden Dragon China ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the NASDAQ Golden Dragon China Index^SM (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 and maintains the Index, which is composed of U.S. exchange-listed companies that are headquartered or incorporated in the People’s Republic of China (excluding Hong Kong).

The Index is designed to provide access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S. exchange listed securities. Securities in the Index may include common stocks, ordinary shares, American depositary receipts (“ADRs”), shares of beneficial interest or limited partnership interests.

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, 2023, on a market price basis, the Fund returned (1.88)%. On a net asset value (“NAV”) basis, the Fund returned (1.80)%. During the same time period, the Index returned (1.55)%. 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 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 FTSE China 50 Index (the “Benchmark Index”) returned (8.70)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 50 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 equity exposure to Chinese companies.

The performance of the Fund differed from the Benchmark Index primarily because the Fund seeks to track an Index that has substantially different individual company components and sector weightings. Additionally, the Fund invests in Chinese companies, as defined by the Index methodology, listed on U.S. exchanges, whereas the Benchmark Index is composed of Chinese stocks listed on the Hong Kong stock exchange. A comparison to the Benchmark Index is still relevant as the Fund and Benchmark Index both represent exposure to Chinese companies.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2023. The

majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s security selection in the consumer discretionary sector, as well as the overweight allocation in the industrials sector.

For the fiscal year ended April 30, 2023, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the energy sector. The information technology sector detracted most significantly from the Fund’s return, followed by the financials and health care sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included PDD Holdings Incl, ADR, a consumer discretionary company (portfolio average weight of 8.71%) and Vipshop Holdings Ltd, ADR, a consumer discretionary company (portfolio average weight of 3.29%). Positions that detracted most significantly from the Fund’s return during this period included NIO, Inc., ADR, a consumer discretionary company (portfolio average weight of 6.93%) and JD.com, Inc., ADR, a consumer discretionary company (portfolio average weight of 7.84%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Consumer Discretionary			53.23
Communication Services			25.11
Information Technology			7.24
Industrials			5.29
Real Estate			3.69
Financials			3.06
Sector Types Each Less Than 3%			2.31
Money Market Funds Plus Other Assets Less Liabilities			0.07
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Alibaba Group Holding Ltd., ADR			8.28
Trip.com Group Ltd., ADR			7.77
Baidu, Inc., ADR			7.52
JD.com, Inc., ADR			6.90
PDD Holdings, Inc., ADR			6.66
ZTO Express (Cayman), Inc., ADR			4.94
NetEase, Inc., ADR			4.92
Vipshop Holdings Ltd., ADR			4.52
H World Group Ltd., ADR			4.25
KE Holdings, Inc., ADR			3.69
Total			59.45

 

*	Excluding money market fund holdings.

Fund Inception: December 9, 2004

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, 2025. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.71%, and the net annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

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

As an index fund, the Invesco MSCI Sustainable Future ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI Global Environment Select Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, MSCI Inc. (the “Index Provider”) compiles, maintains and calculates the Index, which is a custom index comprised of companies that the index methodology has determined focus on offering products or services that contribute to a more environmentally sustainable economy by making a more efficient use of limited global natural resources. The Index is designed to maximize exposure to the following six themes that impact the environment (“Environmental Impact Themes”): alternative energy, energy efficiency, green building, sustainable water, pollution prevention and control, and sustainable agriculture. The Index is composed of securities that are also components of the MSCI ACWI Investable Market Index (the “Parent Index”), an equity index composed of more than 9,200 securities of large-, mid- and small-capitalization companies located in both developed and emerging market countries around the world. Securities eligible for inclusion in the Index include American depositary receipts (“ADRs”), global depositary receipts (“GDRs”), and real estate investment trusts (“REITs”). Companies that derive 75% or more of their revenue cumulatively from the six Environmental Impact Themes are eligible for inclusion in the Index. Such companies are evaluated for their level of involvement in, and strategic commitment to, the six Environmental Impact Themes, based on the Index Provider’s internal environmental, social and governance (“ESG”) rating and score data. Once included in the Index, securities will remain constituents as long as the revenue they derive cumulatively from the six Environmental Impact Themes does not fall below 60%. The Index weights its constituents by their free-float adjusted market capitalization. The Index Provider constrains the weight of any single security in the Index to 5%.

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, 2023, on a market price basis, the Fund returned (13.95)%. On a net asset value (“NAV”) basis, the Fund returned (14.22)%. During the same time period, the Index returned (15.99)%. 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 foreign fair valuation triggers, partially offset by fees and expenses that the Fund incurred during the period.

During the same time period, the MSCI All Country World Index (Net) (the “Benchmark Index”) returned 2.06%. The Benchmark

Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,884 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 global equity markets.

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 and focuses on providing exposure to Environmental Impact Themes, 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 electrical equipment industry and most underweight in the banks industry during the fiscal year ended April 30, 2023. 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 and overweight allocation to the automobiles industry.

For the fiscal year ended April 30, 2023, the semiconductors & semiconductor equipment industry contributed most significantly to the Fund’s return, followed by the household durables industry and electronic equipment instruments & components industry. The automobiles industry was the largest detracting industry, followed by the diversified REITS and electrical equipment industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included First Solar, Inc., a semiconductor and semiconductor equipment company (portfolio average weight of 2.88%), and Enphase Energy, Inc., a semiconductor and semiconductor equipment company (portfolio average weight of 5.48%). Positions that detracted most significantly from the Fund’s return during this period included Tesla, Inc., an automobiles company (portfolio average weight of 4.90%) and NIO Inc, ADR, an automobiles company (portfolio average weight of 4.90%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Semiconductors & Semiconductor Equipment			15.38
Electrical Equipment			14.94
Automobiles			13.55
Independent Power and Renewable Electricity Producers			9.86
Diversified REITs			6.94
Ground Transportation			6.23
Retail REITs			5.30
Building Products			4.39
Food Products			3.40
Industry Types Each Less Than 3%			19.93
Money Market Funds Plus Other Assets Less Liabilities			0.08

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Vestas Wind Systems A/S			5.15
Digital Realty Trust, Inc.			4.93
Tesla, Inc.			4.48
Enphase Energy, Inc.			4.44
First Solar, Inc.			4.14
Central Japan Railway Co.			4.10
SolarEdge Technologies, Inc.			3.77
Li Auto, Inc., A Shares			3.09
NIO, Inc., ADR			2.55
Kingspan Group PLC			2.52
Total			39.17

 

*	Excluding money market fund holdings.

Fund Inception: October 24, 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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.56%. 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-MSCI Global Environment Select Index performance is comprised of the performance of The Cleantech IndexTM, the Fund’s previous underlying index, from Fund inception through March 24, 2021, followed by the performance of the Index for the period March 25, 2021 through April 30, 2023.

 

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

 

-	Effective August 26, 2022, the Fund changed its designated broad-based securities market benchmark index from the S&P 500® Index to the Benchmark Index, as the Benchmark Index more closely reflects the performance of the types of securities in which the Fund invests.

As an index fund, the Invesco Raymond James SB-1 Equity ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Raymond James SB-1 Equity 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, Raymond James Research Services, LLC (the “Index Provider”) compiles, maintains, and calculates the Index, which is comprised of U.S.-listed equity securities that are rated Strong Buy 1 (“SB-1”) by an affiliate of the Index Provider (together, the affiliate and the Index Provider are referred to as “Raymond James”). SB-1 is Raymond James’ highest rating for a security and generally indicates Raymond James’ expectation that the security will achieve certain total return targets in the short-term. The Index includes equity securities of all market capitalizations, including common stocks, sponsored American depositary receipts (“ADRs”), real estate investment trusts (“REITs”), master limited partnerships (“MLPs”) and business development companies (“BDCs”) that are rated SB-1 by Raymond James. The Fund generally will invest in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (1.19)%. On a net asset value (“NAV”) basis, the Fund returned (1.30)%. During the same time period, the Index returned (0.57)%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and expenses that the Fund incurred during the period.

During this same time period, the S&P MidCap 400^® Index (the “Benchmark Index”) returned 1.33%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 401 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. mid-cap equity market.

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

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the industrials sector during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s security selection within the financials and information technology sectors.

For the fiscal year ended April 30, 2023, the industrials sector contributed most significantly to the Fund’s return, followed by the healthcare sector. The financials sector was the largest detractor, followed by the real estate sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included CymaBay Therapeutics, Inc., a health care company (portfolio average weight of 0.57%) and 89bio Inc., a health care company (portfolio average weight of 0.51%). Positions that detracted most significantly from the Fund’s return during this period included DISH Network Corporation, a communication services company (portfolio average weight of 0.51%) and Edgio Inc., a information technology company (portfolio average weight of 0.51%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Financials			19.96
Industrials			14.11
Health Care			13.70
Energy			13.62
Information Technology			12.49
Real Estate			10.15
Consumer Discretionary			8.17
Communication Services			3.37
Sector Types Each Less Than 3%			4.38
Money Market Funds Plus Other Assets Less Liabilities			0.05
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
New York Community Bancorp, Inc.			0.65
Wabash National Corp.			0.62
Tenet Healthcare Corp.			0.61
Shyft Group, Inc. (The)			0.61
Frontier Communications Parent, Inc.			0.60
Ocular Therapeutix, Inc.			0.60
Valley National Bancorp			0.60
Planet Fitness, Inc., Class A			0.59
Coastal Financial Corp.			0.59
Medical Properties Trust, Inc.			0.59
Total			6.06

 

*	Excluding money market fund holdings.

Guggenheim Raymond James SB-1 Equity ETF (the “Predecessor Fund”) Inception: May 19, 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. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.81% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See

invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-	Effective after the close of business on May 18, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund.

 

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

As an index fund, the Invesco S&P 500 BuyWrite ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the CBOE S&P 500 BuyWrite Index^SM (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and will write (sell) call options thereon.

Strictly in accordance with its guidelines and mandated procedures, the Chicago Board Options Exchange, Incorporated (the “Index Provider”) compiles, calculates and maintains the Index, which is a total return benchmark index that is designed to track the performance of a hypothetical “buy-write” strategy on the S&P 500^® Index.

The Index is based on (1) buying an S&P 500 stock index portfolio, and (2) “writing” (or selling) the near-term S&P 500^® Index “covered” call option, generally on the third Friday of each month. A “buy-write,” also called a covered call, generally is considered an investment strategy in which an investor buys a stock or basket of stocks, and sells call options that correspond to the stock or basket of stocks. In return for a premium, the Fund gives the right to the purchaser of the option written by the Fund to receive a cash payment equal to the difference between the value of the S&P 500^® Index and the exercise price, if the value on the expiration date is above the exercise price. In addition, covered call options partially hedge against a decline in the price of the securities on which they are written to the extent of the premium the Fund receives. The Fund will write options that are traded on national securities exchanges. 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, 2023, on a market price basis, the Fund returned (1.21)%. On a net asset value (“NAV”) basis, the Fund returned (1.47)%. During the same time period, the Index returned (1.12)%. 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 expenses that the Fund incurred during the period. During this same time period, the S&P 500^® Index returned 2.66%.

For the fiscal year ended April 30, 2023, several of the Fund’s covered call options contributed most significantly to the Fund’s return, followed by the information technology and health care sectors, respectively. Several of the Fund’s covered call options also detracted most significantly from the Fund’s return, followed by the consumer discretionary and real estate sectors.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included the SPX 10/21/2022 covered call contract, a short S&P 500 Index call contract (no longer held at fiscal year-end), and the SPX 06/17/2022 covered call contract, a short S&P 500 Index call

contract (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included the SPX 08/19/2022 covered call contract, a short S&P 500 Index call contract (no longer held at fiscal year-end), and the SPX 11/18/2022 covered call contract, a short S&P 500 Index call contract (no longer held at fiscal year-end).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Information Technology			26.30
Health Care			14.71
Financials			13.38
Consumer Discretionary			10.11
Industrials			8.68
Communication Services			8.45
Consumer Staples			7.53
Energy			4.78
Sector Types Each Less Than 3%			8.17
Money Market Funds Plus Other Assets Less Liabilities			(2.11)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Apple, Inc.			7.40
Microsoft Corp.			6.71
Amazon.com, Inc.			2.76
NVIDIA Corp.			2.00
Alphabet, Inc., Class A			1.87
Berkshire Hathaway, Inc., Class B			1.74
Alphabet, Inc., Class C			1.65
Meta Platforms, Inc., Class A			1.57
Exxon Mobil Corp.			1.43
UnitedHealth Group, Inc.			1.35
Total			28.48

 

*	Excluding money market fund holdings.

Fund Inception: December 20, 2007

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.49% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

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

As an index fund, the Invesco S&P 500^® Quality ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P 500^® Quality Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is composed of a subset of securities from the S&P 500^® Index that have high “quality”—that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances. The Index Provider assesses a security’s quality based on the following three fundamental measures: return on equity, accruals ratio and financial leverage ratio. Return-on-equity is calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share. Accruals ratio is computed using the change of the company’s total assets over the last year divided by the company’s average net operating assets over the last two years. Financial leverage is calculated as the company’s latest total debt divided by the company’s book value. The Index Provider assesses the quality of companies in the financials or real estate sectors (according to the Global Industry Classification Standard (“GICS”)) based only on the return of equity and financial leverage ratio measures.

In selecting constituent securities for the Index, the Index Provider calculates the quality score of each security in the S&P 500^® Index and then selects the 100 stocks with the highest quality score for inclusion in the Index. The Index Provider weights each component stock of the Index by the total of its quality score multiplied by its market capitalization in the eligible universe, subject to security and sector constraints and optimization procedures. Stock with higher scores receive relatively greater weights. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned 5.80%. On a net asset value (“NAV”) basis, the Fund returned 5.78%. During the same time period, the Index returned 5.94%. 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 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^® Index returned 2.66%.

For the fiscal year ended April 30, 2023, the energy sector contributed most significantly to the Fund’s return, followed by the information technology and communication services sectors, respectively. The financials sector detracted most significantly from the Fund’s return during this period, followed by the consumer discretionary and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included ExxonMobil Corporation, an energy company (portfolio average weight of 4.38%) and Meta Platforms Inc., Class A, a communication services company (portfolio average weight of 3.46%). Positions that detracted most significantly from the Fund’s return during this period included Walmart Inc., a consumer staples company (no longer held at fiscal year-end) and Target Corporation, a consumer staples company (no longer held at fiscal year-end).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Information Technology			27.70
Health Care			13.64
Energy			13.18
Consumer Staples			11.56
Financials			11.32
Industrials			8.83
Communication Services			5.57
Materials			3.95
Consumer Discretionary			3.29
Sector Types Each Less Than 3%			0.86
Money Market Funds Plus Other Assets Less Liabilities			0.10
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Microsoft Corp.			5.82
Apple, Inc.			5.58
Meta Platforms, Inc., Class A			5.43
Exxon Mobil Corp.			5.29
Mastercard, Inc., Class A			4.94
Visa, Inc., Class A			4.56
Procter & Gamble Co. (The)			3.55
Chevron Corp.			3.36
Eli Lilly and Co.			3.03
Broadcom, Inc.			2.95
Total			44.51

 

*	Excluding money market fund holdings.

Fund Inception: December 6, 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, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.19% and the net annual operating expense ratio was indicated as 0.15%. 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—S&P 500® Quality Index is comprised of the performance of the Value Line Timeliness Select Index, the Fund’s underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the S&P 500® High Quality Rankings Index, the Fund’s underlying index for the period June 29, 2010 through March 18, 2016, followed by the performance of the Index for the period March 18, 2016 through April 30, 2023.

 

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

As an index fund, the Invesco S&P Spin-Off ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P U.S. Spin-Off Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (the “Index Provider”) compiles and maintains the Index, which is designed to measure the performance of U.S. companies that have been spun off from a parent company within the past four years. The Index is comprised of equity securities of U.S. companies added to the S&P U.S. BMI, a country sub-index of the S&P Global BMI, that have been spun off and have a float-adjusted market capitalization of at least $1 billion at the time they are added to the Index. The Index Provider defines a spin-off company as any company resulting from one of the following events: spin-off, carve-out or split-off. 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, 2023, on a market price basis, the Fund returned (1.65)%. On a net asset value (“NAV”) basis, the Fund returned (1.53)%. During the same time period, the Index returned (0.89)%. 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 expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Index (the “Benchmark Index”) returned (1.69)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 849 equity 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 U.S. midcap equity market.

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, 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 industrials sector and most underweight the financials sector during the fiscal year ended April 30, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s security selection in the utilities sector along with its underweight exposure to and security selection in the information technology sector.

For the fiscal year ended April 30, 2023, the utilities sector contributed most significantly to the Fund’s return, followed by the

information technology sector. The communication services sector was the largest detractor followed by the real estate sector.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Constellation Energy Corp., a utilities company (portfolio average weight of 7.34%) and Otis Worldwide Corporation, an industrials company (portfolio average weight of 7.37%). Positions that detracted most significantly from the Fund’s return during this period included Concentrix Corporation, an industrials company (portfolio average weight of 4.46%) and Vimeo, Inc., a communication services company (portfolio average weight of 0.97%).

 

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2023
Industrials			40.22
Health Care			16.17
Information Technology			9.52
Utilities			7.47
Materials			6.81
Consumer Discretionary			6.28
Real Estate			5.39
Energy			4.58
Communication Services			3.63
Money Market Funds Plus Other Assets Less Liabilities			(0.07)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2023
Security
Otis Worldwide Corp.			7.62
Constellation Energy Corp.			7.47
GE HealthCare Technologies, Inc.			7.27
Carrier Global Corp.			6.86
Corteva, Inc.			6.81
GXO Logistics, Inc.			5.01
Organon & Co.			4.96
Apartment Income REIT Corp.			4.77
U-Haul Holding Co., Series N			4.60
DT Midstream, Inc.			4.58
Total			59.95

 

*	Excluding money market fund holdings.