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Invesco Annual Report to Shareholders

 

April 30, 2022

 

  RSP   Invesco S&P 500® Equal Weight ETF
  EWCO   Invesco S&P 500® Equal Weight Communication Services ETF
  RCD   Invesco S&P 500® Equal Weight Consumer Discretionary ETF
  RHS   Invesco S&P 500® Equal Weight Consumer Staples ETF
  RYE   Invesco S&P 500® Equal Weight Energy ETF
  RYF   Invesco S&P 500® Equal Weight Financials ETF
  RYH   Invesco S&P 500® Equal Weight Health Care ETF
  RGI   Invesco S&P 500® Equal Weight Industrials ETF
  RTM   Invesco S&P 500® Equal Weight Materials ETF
  EWRE   Invesco S&P 500® Equal Weight Real Estate ETF
  RYT   Invesco S&P 500® Equal Weight Technology ETF
  RYU   Invesco S&P 500® Equal Weight Utilities ETF
  EWMC   Invesco S&P MidCap 400® Equal Weight ETF
  EWSC   Invesco S&P SmallCap 600® Equal Weight ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      4  
Liquidity Risk Management Program      37  
Schedules of Investments   

Invesco S&P 500® Equal Weight ETF (RSP)

     38  

Invesco S&P 500® Equal Weight Communication Services ETF (EWCO)

     44  

Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD)

     45  

Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS)

     47  

Invesco S&P 500® Equal Weight Energy ETF (RYE)

     49  

Invesco S&P 500® Equal Weight Financials ETF (RYF)

     50  

Invesco S&P 500® Equal Weight Health Care ETF (RYH)

     52  

Invesco S&P 500® Equal Weight Industrials ETF (RGI)

     54  

Invesco S&P 500® Equal Weight Materials ETF (RTM)

     56  

Invesco S&P 500® Equal Weight Real Estate ETF (EWRE)

     58  

Invesco S&P 500® Equal Weight Technology ETF (RYT)

     60  

Invesco S&P 500® Equal Weight Utilities ETF (RYU)

     62  

Invesco S&P MidCap 400® Equal Weight ETF (EWMC)

     64  

Invesco S&P SmallCap 600® Equal Weight ETF (EWSC)

     69  
Statements of Assets and Liabilities      76  
Statements of Operations      80  
Statements of Changes in Net Assets      84  
Financial Highlights      90  
Notes to Financial Statements      104  
Report of Independent Registered Public Accounting Firm      117  
Fund Expenses      119  
Tax Information      121  
Trustees and Officers      122  
Approval of Investment Advisory Contracts      132  

 

 

  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.

 

 

  3  

 


 

 

RSP    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight ETF (RSP)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which consists of all of the components of the S&P 500® Index. Unlike the S&P 500® Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 0.86%. On a net asset value (“NAV”) basis, the Fund returned 0.88%. During the same time period, the Index returned 1.08%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation to and security selection within the communication services sector and to the Fund’s overweight allocation to and security selection within the energy sector.

For the fiscal year ended April 30, 2022, the energy sector contributed most significantly to the Fund’s return, followed by the real estate and consumer staples sectors, respectively. The consumer discretionary sector detracted most significantly from the Fund’s performance during the period, followed by the information technology and communication services sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Devon Energy Corp., an energy company (portfolio average weight of 0.23%) and Occidental Petroleum Corp., an energy company (portfolio average weight of 0.22%). Positions that detracted most significantly from the Fund’s return during this period included PayPal Holdings, Inc., an information technology company (portfolio average weight of 0.18%) and IPG Photonics Corp., an information technology company (portfolio average weight of 0.18%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Information Technology      14.91  
Industrials      14.28  
Health Care      12.80  
Financials      12.68  
Consumer Discretionary      11.78  
Consumer Staples      7.02  
Real Estate      6.01  
Utilities      6.00  
Materials      5.85  
Energy      4.28  
Communication Services      4.28  
Money Market Funds Plus Other Assets Less Liabilities      0.11  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Nielsen Holdings PLC      0.31  
Twitter, Inc.      0.30  
United Airlines Holdings, Inc.      0.29  
Delta Air Lines, Inc.      0.27  
American Airlines Group, Inc.      0.27  
EPAM Systems, Inc.      0.27  
Lamb Weston Holdings, Inc.      0.26  
Valero Energy Corp.      0.24  
Constellation Energy Corp.      0.24  
Kimberly-Clark Corp.      0.24  
Total      2.69  

 

*

Excluding money market fund holdings.

 

 

  4  

 


 

Invesco S&P 500® Equal Weight ETF (RSP) (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  
S&P 500® Equal Weight Index     1.08     13.08     44.58     12.24     78.10     13.29     248.21       11.85     741.11
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         10.45       561.97  
Fund                    
NAV Return     0.88       12.89       43.88       12.04       76.56       12.95       237.97         11.38       676.51  
Market Price Return     0.86       12.87       43.79       12.04       76.59       12.95       237.96         11.38       676.35  

 

Guggenheim S&P 500® Equal Weight ETF (the “Predecessor Fund”) Inception: April 24, 2003

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 0.20% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  5  

 


 

 

EWCO    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Communication Services ETF (EWCO)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the” Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Communication Services Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the communication services sector, as defined according to the Global Industry Classification Standard (“GICS”), with a 22 company minimum count. The communication services sector includes companies that facilitate communication or offer related content and information through various mediums and is comprised of companies from the following industries: diversified telecommunications services; wireless telecommunication services; media; entertainment; and interactive media & services. In the event there are fewer than 22 companies eligible for inclusion in the Index at a quarterly rebalance, the Index will be supplemented with the largest communication services companies in the S&P MidCap 400® Index based on float-adjusted market capitalization until the 22 company minimum is reached. Any supplementary companies that are added to the Index will remain in the Index until the next quarterly rebalance, at which point those companies will be reviewed.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (20.98)%. On a net asset value (“NAV”) basis, the Fund returned (20.90)%. During the same time period, the Index returned (20.60)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the media industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the media industry, as well as the Fund’s overweight allocation to the entertainment industry.

For the fiscal year ended April 30, 2022, no industry contributed to the Fund’s return. The media industry detracted most significantly from the Fund’s return, followed by the entertainment industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Live Nation Entertainment Inc., an entertainment company (portfolio average weight of 4.71%) and Interpublic Group of Cos., Inc., a media company (portfolio average weight of 4.61%). Positions that detracted most significantly from the Fund’s return included Netflix, Inc., an entertainment company (portfolio average weight of 4.36%) and Match Group, Inc., an interactive media and services company (portfolio average weight of 2.00%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Media      34.36  
Entertainment      27.24  
Interactive Media & Services      20.29  
Diversified Telecommunication Services      13.48  
Wireless Telecommunication Services      4.64  
Money Market Funds Plus Other Assets Less Liabilities      (0.01)  

 

 

  6  

 


 

Invesco S&P 500® Equal Weight Communication Services ETF (EWCO) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Twitter, Inc.      6.97  
Meta Platforms, Inc., Class A      5.01  
AT&T, Inc.      4.97  
Omnicom Group, Inc.      4.67  
T-Mobile US, Inc.      4.64  
Interpublic Group of Cos., Inc. (The)      4.63  
Live Nation Entertainment, Inc.      4.53  
Electronic Arts, Inc.      4.52  
DISH Network Corp., Class A      4.45  
Lumen Technologies, Inc.      4.42  
Total      48.81  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Communication Services Plus Index     (20.60 )%      7.62     24.65       6.61     24.95
S&P 500® Index     0.21       13.85       47.56         13.64       56.05  
Fund            
NAV Return     (20.90     7.19       23.16         6.19       23.26  
Market Price Return     (20.98     7.16       23.07         6.16       23.11  

 

 

  7  

 


 

Invesco S&P 500® Equal Weight Communication Services ETF (EWCO) (continued)

 

Fund Inception: November 7, 2018

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 0.40% 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.

 

 

  8  

 


 

 

RCD    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Consumer Discretionary Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the consumer discretionary sector, as defined according to the Global Industry Classification Standard (“GICS”). The consumer discretionary sector includes a manufacturing segment, composed of automotive, household durable goods, leisure equipment and textiles and apparel, and a services segment, composed of hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (13.44)%. On a net asset value (“NAV”) basis, the Fund returned (13.39)%. During the same time period, the Index returned (13.07)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the hotels, restaurants & leisure industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to and security selection in the hotels, restaurants & leisure industry and the Fund’s overweight allocation to the household durables industry.

For the fiscal year ended April 30, 2022, the multiline retail industry contributed most significantly to the Fund’s return, followed by the distributors and automobiles industries, respectively. The hotels, restaurants & leisure industry detracted most significantly from the Fund’s return, followed by the household durables and textiles, apparel & luxury goods industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Dollar Tree, Inc., a multiline retail company (portfolio average weight of 1.74%) and AutoZone, Inc., a specialty retail company (portfolio average weight of 1.80%). Positions that detracted most significantly from the Fund’s return during this period included Penn National Gaming, Inc., a hotels, restaurants & leisure company (portfolio average weight of 1.41%) and Etsy, Inc., an internet & direct marketing retail company (portfolio average weight of 1.59%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Hotels, Restaurants & Leisure      30.95  
Specialty Retail      20.13  
Household Durables      13.10  
Textiles, Apparel & Luxury Goods      10.11  
Multiline Retail      5.74  
Distributors      5.31  
Automobiles      4.93  
Internet & Direct Marketing Retail      4.53  
Auto Components      3.44  
Leisure Products      1.74  
Money Market Funds Plus Other Assets Less Liabilities      0.02  

 

 

  9  

 


 

Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Dollar General Corp.      1.97  
Norwegian Cruise Line Holdings Ltd.      1.95  
Ross Stores, Inc.      1.94  
Royal Caribbean Cruises Ltd.      1.94  
Bath & Body Works, Inc.      1.93  
LKQ Corp.      1.92  
Dollar Tree, Inc.      1.88  
Target Corp.      1.88  
McDonald’s Corp.      1.87  
Marriott International, Inc., Class A      1.87  
Total      19.15  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Consumer Discretionary Index     (13.07 )%      7.46     24.11     8.25     48.65     10.66     175.36       8.79     269.10
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     (13.39     7.10       22.86       7.88       46.11       10.23       164.84         8.34       245.96  
Market Price Return     (13.44     7.06       22.72       7.84       45.83       10.24       165.12         8.33       245.64  

 

 

  10  

 


 

Invesco S&P 500® Equal Weight Consumer Discretionary ETF (RCD) (continued)

 

Guggenheim S&P 500® Equal Weight Consumer Discretionary ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  11  

 


 

 

RHS    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Consumer Staples Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the consumer staples sector, as defined according to the Global Industry Classification Standard (“GICS”). The consumer staples sector includes manufacturers and distributors of food, beverages and tobacco, producers of non-durable household goods and personal products, food and drug retailing companies as well as hypermarkets and consumer super centers.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 10.58%. On a net asset value (“NAV”) basis, the Fund returned 10.50%. During the same time period, the Index returned 10.98%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the food products industry and most underweight in the

software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the food products and beverages industries, respectively.

For the fiscal year ended April 30, 2022, the foods products industry contributed most significantly to the Fund’s return, followed by the food & staples retailing and tobacco industries, respectively. The personal products industry was the only industry to detract from the Fund’s return during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Costco Wholesale Corp., a food & staples retailing company (portfolio average weight of 3.27%) and Kroger Co., a food & staples retailing company (portfolio average weight of 3.19%). Positions that detracted most significantly from the Fund’s return during this period included Clorox Co., a personal products company (portfolio average weight of 3.01%) and Walgreens Boots Alliance, Inc., a food & staples retailing company (portfolio average weight of 2.95%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Food Products

     41.44  

Beverages

     19.18  

Household Products

     15.65  

Food & Staples Retailing

     14.42  

Tobacco

     6.37  

Personal Products

     2.86  

Money Market Funds Plus Other Assets Less Liabilities

     0.08  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Security

  

Lamb Weston Holdings, Inc.

     3.77  

Kimberly-Clark Corp.

     3.38  

Monster Beverage Corp.

     3.35  

Conagra Brands, Inc.

     3.32  

Constellation Brands, Inc., Class A

     3.31  

Kellogg Co.

     3.27  

Kraft Heinz Co. (The)

     3.26  

General Mills, Inc.

     3.25  

Philip Morris International, Inc.

     3.22  

Procter & Gamble Co. (The)

     3.21  

Total

     33.34  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

Invesco S&P 500® Equal Weight Consumer Staples ETF (RHS) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Consumer Staples Index     10.98     11.85     39.92     9.57     57.90     12.93     237.27       11.47     438.04
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     10.50       11.41       38.30       9.13       54.76       12.43       222.81         10.93       399.08  
Market Price Return     10.58       11.40       38.26       9.11       54.64       12.44       222.96         10.93       399.19  

 

Guggenheim S&P 500® Equal Weight Consumer Staples ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  13  

 


 

 

RYE    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Energy ETF (RYE)

 

Effective after the close of markets on March 18, 2022, Invesco S&P 500® Equal Weight Energy ETF’s (the “Fund”) underlying index changed from S&P 500® Equal Weight Energy Index (the “Previous Index”) to S&P 500® Equal Weight Energy Plus Index (the “Index”). At the time, the Fund also changed its investment objective and principal investment strategy.

As an index fund, the Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index and, through March 18, 2022, the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, and through March 18, 2022, the Previous Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Energy Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the energy sector, as defined according to the Global Industry Classification Standard (“GICS”), with a 22 company minimum count at each rebalance. The energy sector includes companies engaged in the exploration and production, refining and marketing, and storage and transportation of oil and gas and coal and consumable fuels, as well as companies that offer oil and gas equipment and services. All companies included in the Parent Index and the Index are domiciled in the United States and trade on U.S. exchanges. In the event there are fewer than 22 companies eligible for inclusion in the Index at a quarterly rebalance, the Index will be supplemented with the largest energy companies in the S&P MidCap 400® Index based on float-adjusted market capitalization until the 22 company minimum is reached. Any supplementary companies that are added to the Index will remain in the Index until at least the next quarterly rebalance, at which point those companies will be reviewed.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 65.68%. On a net asset value (“NAV”) basis, the Fund returned 65.91%. During the same time period, the Custom Invesco S&P 500 Equal Weight Energy ETF Benchmark (a composite of the Previous Index through March 18, 2022, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 66.93%. During the fiscal year, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to the fees and 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® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight in the oil, gas & consumable fuels industry.

For the fiscal year ended April 30, 2022, the oil, gas & consumable fuels industry contributed most significantly to the Fund’s return, followed by the energy equipment & services industry. No industry detracted from the Fund’s return during this period.

The position that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, was Devon Energy Corp., an oil, gas & consumable fuels company (portfolio average weight of 4.94%) and Marathon Oil Corp., an oil, gas & consumable fuels company (portfolio average weight of 4.90%). The only position that detracted from the Fund’s return during this period was NOV Inc., an energy equipment & services company (no longer held at fiscal year-end).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Oil, Gas & Consumable Fuels

     87.83  

Energy Equipment & Services

     12.00  

Money Market Funds Plus Other Assets Less Liabilities

     0.17  

 

 

  14  

 


 

Invesco S&P 500® Equal Weight Energy ETF (RYE) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022

       

Security

  

Valero Energy Corp.

     5.43  

Coterra Energy, Inc.

     5.02  

Marathon Petroleum Corp.

     4.96  

Hess Corp.

     4.87  

Marathon Oil Corp.

     4.80  

Williams Cos., Inc. (The)

     4.80  

Phillips 66

     4.80  

Targa Resources Corp.

     4.79  

APA Corp.

     4.68  

EOG Resources, Inc.

     4.51  

Total

     48.66  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Custom Invesco S&P 500 Equal Weight Energy ETF Benchmark     66.93     12.01     40.53     6.37     36.17     2.77     31.43       4.31     92.43
S&P 500® Equal Weight Energy Plus Index     N/A       N/A       N/A       N/A       N/A       N/A       N/A         N/A       N/A  
S&P 500® Equal Weight Energy Index     66.69       11.96       40.33       6.34       35.97       2.76       31.24         4.30       92.16  
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     65.91       11.58       38.92       5.98       33.71       2.41       26.84         3.85       79.56  
Market Price Return     65.68       11.57       38.88       5.99       33.76       2.43       27.12         3.85       79.53  

 

 

  15  

 


 

Invesco S&P 500® Equal Weight Energy ETF (RYE) (continued)

 

Guggenheim S&P 500® Equal Weight Energy ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

-

The Custom Invesco S&P 500 Equal Weight Energy ETF Benchmark is comprised of the performance of the Previous Index from Fund Inception through the conversion date, March 18, 2022, followed by the performance of the Index starting from the conversion date through April 30, 2022.

 

 

  16  

 


 

 

RYF    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Financials ETF (RYF)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Financials Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the financials sector, as defined according to the Global Industry Classification Standard (“GICS”). The financials sector includes companies involved in banking, thrifts and mortgage finance, specialized finance, consumer finance, asset management and custody banks, investment banking and brokerage and insurance, as well as financial exchanges and data and mortgage real estate investment trusts.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (2.08)%. On a net asset value (“NAV”) basis, the Fund returned (1.90)%. During the same time period, the Index returned (1.52)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the insurance industry and most underweight the software

industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to and security selection within the capital markets industry.

For the fiscal year ended April 30, 2022, the insurance industry most significantly contributed to the Fund’s return, followed by the diversified financial services industry. The capital markets industry detracted most significantly from the Fund’s return during the period, followed by the banks and consumer finance industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included W.R. Berkley Corp., an insurance company (portfolio average weight of 1.55%) and Chubb Ltd., an insurance company (portfolio average weight of 1.53%). Positions that detracted most significantly from the Fund’s return during this period included MarketAxess Holdings Inc., a capital markets company (portfolio average weight of 1.42%) and Invesco, Ltd., a capital markets company (portfolio average weight of 1.45%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Insurance

     35.52  

Capital Markets

     30.84  

Banks

     25.48  

Consumer Finance

     6.52  

Diversified Financial Services

     1.56  

Money Market Funds Plus Other Assets Less Liabilities

     0.08  

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Security

  

Arthur J. Gallagher & Co.

     1.73  

Marsh & McLennan Cos., Inc.

     1.71  

Discover Financial Services

     1.70  

Assurant, Inc.

     1.69  

W.R. Berkley Corp.

     1.67  

Synchrony Financial

     1.66  

Principal Financial Group, Inc.

     1.66  

Hartford Financial Services Group, Inc. (The)

     1.65  

American Express Co.

     1.65  

Moody’s Corp.

     1.64  

Total

     16.76  

 

*

Excluding money market fund holdings.

 

 

  17  

 


 

Invesco S&P 500® Equal Weight Financials ETF (RYF) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Financials Index     (1.52 )%      12.37     41.88     11.56     72.83     14.08     273.31       6.13     151.32
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     (1.90     11.97       40.39       11.15       69.62       13.54       256.18         5.44       127.20  
Market Price Return     (2.08     11.93       40.24       11.16       69.70       13.54       256.12         5.43       126.96  

 

Guggenheim S&P 500® Equal Weight Financials ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  18  

 


 

 

RYH    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Health Care ETF (RYH)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Health Care Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the health care sector, as defined according to the Global Industry Classification Standard (“GICS”). The health care sector includes health care providers and services, companies that manufacture and distribute health care equipment and supplies, health care technology companies and companies involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 0.91%. On a net asset value (“NAV”) basis, the Fund returned 1.00%. During the same time period, the Index returned 1.42%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the health care equipment & supplies industry and most

underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the health care providers & services and pharmaceuticals industries, respectively.

For the fiscal year ended April 30, 2022, the health care providers & services industry contributed most significantly to the Fund’s return, followed by the pharmaceuticals and biotechnology industries, respectively. The health care equipment & supplies industry detracted most significantly from the Fund’s return, followed by the life sciences tools & services industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included McKesson Corp., a health care providers & services company (portfolio average weight of 1.63%) and Eli Lilly and Co., a pharmaceuticals company (portfolio average weight of 1.61%). Positions that detracted most significantly from the Fund’s return during this period included Moderna, Inc., a biotechnology company (portfolio average weight of 1.07%) and Align Technology, Inc., a health care equipment & services company (portfolio average weight of 1.46%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Health Care Equipment & Supplies

     28.19  

Health Care Providers & Services

     24.88  

Life Sciences Tools & Services

     17.96  

Pharmaceuticals

     14.42  

Biotechnology

     12.93  

Health Care Technology

     1.57  

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

  

Vertex Pharmaceuticals, Inc.

     1.81  

Merck & Co., Inc.

     1.78  

Cardinal Health, Inc.

     1.73  

McKesson Corp.

     1.73  

Eli Lilly and Co.

     1.72  

Bristol-Myers Squibb Co.

     1.71  

Cigna Corp.

     1.71  

Anthem, Inc.

     1.69  

Johnson & Johnson

     1.67  

UnitedHealth Group, Inc.

     1.65  

Total

     17.20  

 

*

Excluding money market fund holdings.

 

 

  19  

 


 

Invesco S&P 500® Equal Weight Health Care ETF (RYH) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Health Care Index     1.42     14.43     49.82     12.50     80.21     15.47     321.39       13.14     577.37
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     1.00       13.98       48.07       12.06       76.74       14.97       303.48         12.49       519.51  
Market Price Return     0.91       13.97       48.03       12.06       76.67       14.95       302.97         12.49       519.47  

 

Guggenheim S&P 500® Equal Weight Health Care ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  20  

 


 

 

RGI    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Industrials ETF (RGI)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Industrials Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the industrials sector, as defined according to the Global Industry Classification Standard (“GICS”). The industrials sector includes manufacturers and distributors of capital goods such as aerospace and defense, building products, electrical equipment and machinery, companies that offer construction and engineering services, providers of commercial and professional services including printing, environmental and facilities services, office services and supplies, security and alarm services, human resource and employment services, research and consulting services and providers of transportation services.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (3.71)%. On a net asset value (“NAV”) basis, the Fund returned (3.70)%. During the same time period, the Index returned (3.32)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the machinery industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to and security selection within the machinery industry.

For the fiscal year ended April 30, 2022, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the professional services and commercial services & supplies industries, respectively. The machinery industry detracted most significantly from the Fund’s return during this period, followed by the building products and industrial conglomerates industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Quanta Services, Inc., a construction & engineering company (portfolio average weight of 1.37%) and Republic Services Inc., a commercial services & supplies company (portfolio average weight of 1.41%). Positions that detracted most significantly from the Fund’s return during the period included Stanley Black & Decker, Inc., a machinery company (portfolio average weight of 1.31%) and Boeing Co., an aerospace & defense company (portfolio average weight of 1.32%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Machinery

     23.14  

Aerospace & Defense

     13.72  

Professional Services

     9.26  

Building Products

     9.22  

Airlines

     9.00  

Commercial Services & Supplies

     7.38  

Electrical Equipment

     6.63  

Road & Rail

     6.50  

Air Freight & Logistics

     5.41  

Trading Companies & Distributors

     4.31  

Industrial Conglomerates

     4.07  

Industry Types Each Less Than 3%

     1.32  

Money Market Funds Plus Other Assets Less Liabilities

     0.04  

 

 

  21  

 


 

Invesco S&P 500® Equal Weight Industrials ETF (RGI) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022

 

Security

  

Nielsen Holdings PLC

     2.15  

United Airlines Holdings, Inc.

     2.03  

Delta Air Lines, Inc.

     1.89  

American Airlines Group, Inc.

     1.88  

Southwest Airlines Co.

     1.63  

Verisk Analytics, Inc.

     1.57  

Alaska Air Group, Inc.

     1.57  

Jacobs Engineering Group, Inc.

     1.56  

Waste Management, Inc.

     1.53  

Cintas Corp.

     1.51  

Total

     17.32  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Industrials Index     (3.32 )%      13.67     46.87     12.75     82.24     14.02     271.32       10.90     396.96
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     (3.70     13.26       45.30       12.32       78.74       13.54       255.97         10.38       362.20  
Market Price Return     (3.71     13.25       45.25       12.33       78.82       13.52       255.47         10.38       361.90  

 

 

  22  

 


 

Invesco S&P 500® Equal Weight Industrials ETF (RGI) (continued)

 

Guggenheim S&P 500® Equal Weight Industrials ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  23  

 


 

 

RTM    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Materials ETF (RTM)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Materials Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the materials sector, as defined according to the Global Industry Classification Standard (“GICS”). The materials sector includes companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 10.11%. On a net asset value (“NAV”) basis, the Fund returned 10.18%. During the same time period, the Index returned 10.58%. 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 the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the chemicals industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority

of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to and security selection within the chemicals and metals & mining industries.

For the fiscal year ended April 30, 2022, the chemicals industry contributed most significantly to the Fund’s return followed by the metals & mining industry. No industry detracted from the Fund’s return during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included CF Industries Holdings, Inc., a chemicals company (portfolio average weight of 3.95%) and Mosaic Co. (The), a chemicals company (portfolio average weight of 3.88%). Positions that detracted most significantly from the Fund’s return during the period included PPG Industries, Inc., a chemicals company (portfolio average weight of 3.54%) and Ecolab Inc., a chemicals company (portfolio average weight of 3.44%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Chemicals      57.59  
Containers & Packaging      25.56  
Metals & Mining      10.14  
Construction Materials      6.65  
Money Market Funds Plus Other Assets Less Liabilities      0.06  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Sherwin-Williams Co. (The)      4.04  
Nucor Corp.      3.93  
WestRock Co.      3.92  
Avery Dennison Corp.      3.82  
Linde PLC      3.81  
Dow, Inc.      3.74  
International Paper Co.      3.74  
Amcor PLC      3.73  
Packaging Corp. of America      3.69  
Corteva, Inc.      3.69  
Total      38.11  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco S&P 500® Equal Weight Materials ETF (RTM) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  

S&P 500® Equal Weight Materials Index

    10.58     21.03     77.30     15.63     106.67     13.42     252.30       11.36     429.97
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    

NAV Return

    10.18       20.64       75.56       15.20       102.93       12.94       237.73         10.76       386.99  
Market Price Return     10.11       20.61       75.47       15.22       103.09       12.94       237.78         10.75       386.83  

 

Guggenheim S&P 500® Equal Weight Materials ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  25  

 


 

 

EWRE    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Real Estate ETF (EWRE)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Real Estate Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the real estate sector, as defined according to the Global Industry Classification Standard (“GICS”). The real estate sector includes companies operating in real estate development and operation, offering real estate related services and equity real estate investment trusts.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 13.37%. On a net asset value (“NAV”) basis, the Fund returned 13.20%. During the same time period, the Index returned 13.63%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the equity REITs industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index

during that period can be attributed to the Fund being overweight in the equity REITs industry. For the fiscal year ended April 30, 2022, the equity REITs industry contributed most significantly to the Fund’s return, followed by the real estate management & development industry. No industry detracted from the Fund’s return during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Iron Mountain, Inc., an equity REITs company (portfolio average weight of 3.41%) and Prologis, Inc, an equity REITs company (portfolio average weight of 3.54%). Positions that detracted most significantly from the Fund’s return during the period included Camden Property Trust, an equity REITs company (portfolio average weight of 0.22%) and Vornado Realty Trust, an equity REITs company (portfolio average weight of 3.31%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Equity REITs      96.79  
Real Estate Management & Development      3.17  
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   
Host Hotels & Resorts, Inc.      3.77  
Prologis, Inc.      3.62  
SBA Communications Corp., Class A      3.61  
Digital Realty Trust, Inc.      3.59  
Kimco Realty Corp.      3.57  
Crown Castle International Corp.      3.56  
Iron Mountain, Inc.      3.55  
Realty Income Corp.      3.54  
Weyerhaeuser Co.      3.47  
Equinix, Inc.      3.46  
Total      35.74  

 

*

Excluding money market fund holdings.

 

 

  26  

 


 

Invesco S&P 500® Equal Weight Real Estate ETF (EWRE) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Real Estate Index     13.63     13.72     47.07     11.88     75.28       10.29     93.07
S&P 500® Index     0.21       13.85       47.56       13.66       89.68         12.85       125.12  
Fund                
NAV Return     13.20       13.37       45.71       11.49       72.29         9.92       88.75  
Market Price Return     13.37       13.41       45.87       11.58       72.96         10.03       89.96  

 

Guggenheim S&P 500® Equal Weight Real Estate ETF (the “Predecessor Fund”) Inception: August 13, 2015

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  27  

 


 

 

RYT    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Technology ETF (RYT)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Information Technology Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the information technology sector, as defined according to the Global Industry Classification Standard (“GICS”). The information technology sector includes companies that offer software and information technology services, manufacturers and distributors of technology hardware and equipment such as communications equipment, cellular phones, computers and peripherals, electronic equipment and related instruments and semiconductors.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (6.08)%. On a net asset value (“NAV”) basis, the Fund returned (6.10)%. During the same time period, the Index returned (5.73)%. 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 incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the IT services industry and most underweight in the interactive media & services industry during the fiscal year ended April 30,

2022. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the IT services industry. For the fiscal year ended April 30, 2022, the communications equipment industry was the only industry to contribute to the Fund’s return. The IT services industry detracted most significantly from the Fund’s return during this period, followed by the electronic equipment, instruments and components and software industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Arista Networks, Inc., a communications equipment company (portfolio average weight of 1.46%) and Gartner, Inc., an IT Services company (portfolio average weight of 1.41%). Positions that detracted most significantly from the Fund’s return during this period included PayPal Holdings, Inc., an IT services company (portfolio average weight of 1.22%) and IPG Photonics Corp., an electronic equipment, instruments & components company (portfolio average weight of 1.23%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022

 
IT Services      26.56  
Semiconductors & Semiconductor Equipment      23.88  
Software      23.64  
Electronic Equipment, Instruments & Components      11.71  
Technology Hardware, Storage & Peripherals      8.00  
Communications Equipment      6.24  
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   
EPAM Systems, Inc.      1.78  
Western Digital Corp.      1.58  
Mastercard, Inc., Class A      1.51  
Fidelity National Information Services, Inc.      1.49  
PTC, Inc.      1.48  
FleetCor Technologies, Inc.      1.46  
Roper Technologies, Inc.      1.46  
Visa, Inc., Class A      1.46  
Global Payments, Inc.      1.45  
International Business Machines Corp.      1.44  
Total      15.11  

 

*

Excluding money market fund holdings.

 

 

  28  

 


 

Invesco S&P 500® Equal Weight Technology ETF (RYT) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Information Technology Index     (5.73 )%      14.40     49.72     17.73     126.14     18.18     431.53       12.94     558.86
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     (6.10     13.95       47.94       17.25       121.59       17.67       408.96         12.41       512.47  
Market Price Return     (6.08     13.95       47.96       17.24       121.48       17.67       408.86         12.41       512.42  

 

Guggenheim S&P 500® Equal Weight Technology ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  29  

 


 

 

RYU    Management’s Discussion of Fund Performance
   Invesco S&P 500® Equal Weight Utilities ETF (RYU)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which is composed of all of the components of the S&P 500® Utilities Index (the “Parent Index”), an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the utilities sector, as defined according to the Global Industry Classification Standard (“GICS”), with a 22 company minimum count. The utilities sector includes utility companies such as electric, gas and water utilities, independent power producers and energy traders and companies that engage in generation and distribution of electricity using renewable sources. In the event there are fewer than 22 companies eligible for inclusion in the Index at a quarterly rebalance, the Index will be supplemented with the largest utilities companies in the S&P MidCap 400® Index based on float-adjusted market capitalization until the 22 company minimum is reached. Any supplementary companies that are added to the Index will remain in the Index until at least the next quarterly rebalance, at which point those companies will be reviewed.

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 11.15%. On a net asset value (“NAV”) basis, the Fund returned 10.90%. During the same time period, the Index returned 11.39%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 0.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 equity 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 U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index

weights stocks based primarily on market capitalization. Furthermore, the Fund seeks to track an index that focuses on a particular sector, whereas the Benchmark Index is a broad-based index.

Relative to the Benchmark Index, the Fund was most overweight in the electric utilities industry and most underweight in the software industry during the fiscal year ended April 30, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight to and security selection in the electric utilities industry.

For the fiscal year ended April 30, 2022, the electric utilities industry contributed most significantly to the Fund’s return, followed by the multi-utilities and gas utilities industries, respectively. The independent power and renewable electricity producers industry was the only industry to detract from the Fund’s return during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Exelon Corp., an electric utilities company (portfolio average weight of 3.54%) and CenterPoint Energy, Inc., a multi-utilities company (portfolio average weight of 3.59%). Positions that detracted most significantly from the Fund’s return during this period included AES Corp. (The), an independent power and renewable electricity producers company (portfolio average weight of 3.41%) and Pinnacle West Capital Corp., an electric utilities company (portfolio average weight of 3.47%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Electric Utilities      55.30  
Multi-Utilities      34.74  
Water Utilities      3.39  
Gas Utilities      3.33  
Independent Power and Renewable Electricity Producers      3.08  
Money Market Funds Plus Other Assets Less Liabilities      0.16  

 

 

  30  

 


 

Invesco S&P 500® Equal Weight Utilities ETF (RYU) (continued)

 

Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Constellation Energy Corp.      4.01  
Entergy Corp.      3.65  
PPL Corp.      3.60  
CenterPoint Energy, Inc.      3.60  
Exelon Corp.      3.58  
Southern Co. (The)      3.57  
WEC Energy Group, Inc.      3.56  
Edison International      3.55  
Ameren Corp.      3.55  
Public Service Enterprise Group, Inc.      3.54  
Total      36.21  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
S&P 500® Equal Weight Utilities Plus Index     11.39     9.79     32.33     10.19     62.42     11.78     204.45       9.06     283.69
S&P 500® Index     0.21       13.85       47.56       13.66       89.68       13.67       260.05         9.60       314.05  
Fund                    
NAV Return     10.90       9.39       30.91       9.77       59.40       11.32       192.11         8.56       257.11  
Market Price Return     11.15       9.40       30.95       9.75       59.23       11.32       192.33         8.56       257.04  

 

 

  31  

 


 

Invesco S&P 500® Equal Weight Utilities ETF (RYU) (continued)

 

Guggenheim S&P 500® Equal Weight Utilities ETF (the “Predecessor Fund”) Inception: November 1, 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 0.40% 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  32  

 


 

 

EWMC    Management’s Discussion of Fund Performance
   Invesco S&P MidCap 400® Equal Weight ETF (EWMC)

 

As an index fund, the Invesco S&P MidCap 400® Equal Weight ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P MidCap 400® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which consists of all of the components of the S&P MidCap 400® Index (the “Parent Index”), a broad-based index of approximately 400 securities that measures the mid-cap segment of the U.S. equity market. Such components include common stock of companies listed on certain U.S. exchanges and also may include equity interests in real estate investment trusts (“REITs”).

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (6.81)%. On a net asset value (“NAV”) basis, the Fund returned (6.72)%. During the same time period, the Index returned (6.37)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P MidCap 400® Index (the “Benchmark Index”) returned (7.03)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 400 equity 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 U.S. midcap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the industrials sector during the fiscal year ended April 30, 2022. 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 and industrials sectors, respectively.

For the fiscal year ended April 30, 2022, the energy sector contributed most significantly to the Fund’s return, followed by the real estate and materials sectors, respectively. The consumer discretionary sector detracted most significantly from the Fund’s return during this period, followed by the information technology and health care sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Avis Budget Group, Inc., an industrials company (portfolio average weight of 0.33%) and Murphy Oil Corp., an energy company (portfolio average weight of 0.28%). Positions that detracted most significantly from the Fund’s return during this period included Cerence, Inc., an information technology company (no longer held at fiscal year-end) and Boston Beer Co., Inc. (The), Class A, a consumer staples company (portfolio average weight of 0.22%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Industrials      16.86  
Consumer Discretionary      15.80  
Financials      14.60  
Information Technology      13.92  
Health Care      9.27  
Real Estate      8.54  
Materials      6.81  
Consumer Staples      4.83  
Utilities      3.62  
Energy      3.47  
Communication Services      2.21  
Money Market Funds Plus Other Assets Less Liabilities      0.07  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
EQT Corp.      0.38  
SailPoint Technologies Holding, Inc.      0.37  
GameStop Corp., Class A      0.35  
Murphy USA, Inc.      0.34  
Alleghany Corp.      0.34  
Avis Budget Group, Inc.      0.33  
Chemours Co. (The)      0.32  
FirstCash Holdings, Inc.      0.32  
Pilgrim’s Pride Corp.      0.32  
Ollie’s Bargain Outlet Holdings, Inc.      0.31  
Total      3.38  

 

*

Excluding money market fund holdings.

 

 

  33  

 


 

Invesco S&P MidCap 400® Equal Weight ETF (EWMC) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended—S&P MidCap 400® Equal Weight Index     (6.37 )%      10.79     36.00     9.36     56.39     11.58     199.05       11.47     245.30
S&P MidCap 400® Index     (7.03     9.91       32.78       9.29       55.94       11.40       194.47         11.20       235.65  
Fund                    
NAV Return     (6.72     10.40       34.57       8.96       53.60       11.12       187.01         11.03       229.75  
Market Price Return     (6.81     10.36       34.43       8.93       53.40       11.13       187.40         11.02       229.45  

 

Guggenheim S&P MidCap 400® Equal Weight ETF (the “Predecessor Fund”) Inception: December 3, 2010

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 0.40% 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:

 

-

The Blended—S&P MidCap 400® Equal Weight Index performance is comprised of the performance of the Russell MidCap Equal Weight Index, the Fund’s previous underlying index, prior to the conversion date, January 26, 2016, 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  34  

 


 

 

EWSC    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap 600® Equal Weight ETF (EWSC)

 

As an index fund, the Invesco S&P SmallCap 600® Equal Weight ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (“S&P DJI” or the “Index Provider”) compiles, maintains and calculates the Index, which consists of all of the components of the S&P SmallCap 600® Index (the Parent Index”), a broad-based index of approximately 600 securities that measures the small-cap segment of the U.S. equity market. Such components include common stock of companies listed on certain U.S. exchanges and also may include equity interests in real estate investment trusts (“REITs”).

The Index is an equal-weighted version of the Parent Index. Unlike the Parent Index, which employs a float-adjusted market capitalization weighted methodology, the Index assigns each component security the same weight. 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 (8.54)%. On a net asset value (“NAV”) basis, the Fund returned (8.27)%. During the same time period, the Index returned (7.97)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P SmallCap 600® Index (the “Benchmark Index”) returned (8.54)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 equity 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 U.S. small cap market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an equal weighted methodology, whereas the Benchmark Index weights stocks based primarily on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the health care sector and most underweight in the information technology sector during the fiscal year ended April 30, 2022. 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 materials and industrials sectors, respectively.

For the fiscal year ended April 30, 2022, the energy sector contributed most significantly to the Fund’s return, followed by the materials sector. The consumer discretionary sector detracted most significantly from the Fund’s return during this period, followed by the health care and financials sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included CONSOL Energy, Inc., an energy company (portfolio average weight of 0.20%) and Lantheus Holdings, Inc., a health care company (portfolio average weight of 0.19%). Positions that detracted most significantly from the Fund’s return during this period included Tabula Rasa Healthcare, Inc., a health care company (no longer held at fiscal year-end) and SelectQuote, Inc., a financials company (portfolio average weight of 0.12%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Financials      17.45  
Industrials      14.55  
Consumer Discretionary      14.48  
Health Care      13.51  
Information Technology      11.17  
Real Estate      8.05  
Materials      6.22  
Consumer Staples      5.53  
Energy      4.95  
Sector Types Each Less Than 3%      4.04  
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   
Plantronics, Inc.      0.27  
CONSOL Energy, Inc.      0.25  
CoreCivic, Inc.      0.25  
Southwestern Energy Co.      0.24  
Natus Medical, Inc.      0.24  
Sylvamo Corp.      0.23  
Chico’s FAS, Inc.      0.23  
Guess?, Inc.      0.23  
Cutera, Inc.      0.23  
Chefs’ Warehouse, Inc. (The)      0.23  
Total      2.40  

 

*

Excluding money market fund holdings.

 

 

  35  

 


 

Invesco S&P SmallCap 600® Equal Weight ETF (EWSC) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2022

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended—S&P SmallCap 600® Equal Weight Index     (7.97 )%      11.59     38.97     9.80     59.59     10.41     169.14       9.80     190.51
S&P SmallCap 600® Index     (8.54     9.15       30.06       8.91       53.22       11.79       204.75         11.68       252.60  
Fund                    
NAV Return     (8.27     11.21       37.55       9.43       56.93       9.99       159.02         9.35       177.26  
Market Price Return     (8.54     11.24       37.65       9.29       55.93       9.97       158.65         9.32       176.51  

 

Guggenheim S&P SmallCap 600® Equal Weight ETF (the “Predecessor Fund”) Inception: December 3, 2010

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 0.40% 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:

 

-

The Blended—S&P SmallCap 600® Equal Weight Index performance is comprised of the performance of the Russell 2000® Equal Weight Index, the Fund’s previous underlying index, prior to the conversion date, January 26, 2016, 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 indexes are based on the inception date of the Predecessor Fund.

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  36  

 


 

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.

 

  37  

 

 

 

 


 

Invesco S&P 500® Equal Weight ETF (RSP)

April 30, 2022

Schedule of Investments(a)

 

        Shares       Value  
Common Stocks & Other Equity Interests-99.89%

 

Communication Services-4.28%

 

Activision Blizzard, Inc.

    808,627     $ 61,132,201  

Alphabet, Inc., Class A(b)

    12,635       28,835,471  

Alphabet, Inc., Class C(b)

    11,743       27,001,032  

AT&T, Inc.

    3,616,418       68,205,644  

Charter Communications, Inc., Class A(b)(c)

    115,972       49,692,842  

Comcast Corp., Class A

    1,442,486       57,353,243  

DISH Network Corp.,
Class A(b)(c)

    2,161,144       61,614,215  

Electronic Arts, Inc.

    530,735       62,653,267  

Fox Corp., Class A

    1,160,888       41,606,226  

Fox Corp., Class B

    532,744       17,708,411  

Interpublic Group of Cos., Inc. (The)

    1,931,765       63,014,174  

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

    598,089       62,727,574  

Lumen Technologies, Inc.(c)

    6,029,363       60,655,392  

Match Group, Inc.(b)(c)

    734,392       58,127,127  

Meta Platforms, Inc., Class A(b)

    346,221       69,406,924  

Netflix, Inc.(b)

    190,944       36,348,100  

News Corp., Class A

    2,353,152       46,733,599  

News Corp., Class B

    729,013       14,514,649  

Omnicom Group, Inc.

    852,257       64,882,325  

Paramount Global, Class B(c)

    1,990,786       57,971,688  

Take-Two Interactive Software,
Inc.(b)(c)

    422,933       50,544,723  

T-Mobile US, Inc.(b)

    521,386       64,203,472  

Twitter, Inc.(b)(c)

    1,967,883       96,465,625  

Verizon Communications, Inc.

    1,224,364       56,688,053  

Walt Disney Co. (The)(b)

    492,633       54,992,622  

Warner Bros Discovery, Inc.(b)

    2,705,833       49,110,877  
   

 

 

 
          1,382,189,476  
   

 

 

 

Consumer Discretionary-11.78%

 

Advance Auto Parts, Inc.

    318,410       63,564,188  

Amazon.com, Inc.(b)

    22,303       55,437,006  

Aptiv PLC(b)

    611,786       65,094,030  

AutoZone, Inc.(b)

    35,011       68,462,960  

Bath & Body Works, Inc.(c)

    1,387,085       73,362,926  

Best Buy Co., Inc.

    686,364       61,724,715  

Booking Holdings, Inc.(b)

    31,833       70,360,798  

BorgWarner, Inc.(c)

    1,788,102       65,855,797  

Caesars Entertainment, Inc.(b)(c)

    868,202       57,544,429  

CarMax, Inc.(b)(c)

    654,601       56,151,674  

Carnival Corp.(b)(c)

    3,710,712       64,195,318  

Chipotle Mexican Grill, Inc.(b)

    44,009       64,059,940  

D.R. Horton, Inc.

    802,268       55,829,830  

Darden Restaurants, Inc.

    503,402       66,313,145  

Dollar General Corp.

    315,731       74,995,584  

Dollar Tree, Inc.(b)

    442,404       71,868,530  

Domino’s Pizza, Inc.(c)

    168,218       56,857,684  

eBay, Inc.

    1,297,098       67,345,328  

Etsy, Inc.(b)(c)

    535,426       49,896,349  

Expedia Group, Inc.(b)(c)

    362,461       63,340,060  

Ford Motor Co.

    4,048,537       57,327,284  

Garmin Ltd.

    591,418       64,902,211  

General Motors Co.(b)

    1,564,172       59,297,761  

Genuine Parts Co.(c)

    533,469       69,377,643  

Hasbro, Inc.

    750,857       66,120,467  

Hilton Worldwide Holdings,
Inc.(b)(c)

    458,090       71,136,796  

Home Depot, Inc. (The)

    204,825       61,529,430  

        Shares       Value  

Consumer Discretionary-(continued)

 

Las Vegas Sands Corp.(b)(c)

    1,782,816     $ 63,165,171  

Lennar Corp., Class A

    750,008       57,368,112  

LKQ Corp.

    1,474,020       73,155,613  

Lowe’s Cos., Inc.

    292,082       57,753,374  

Marriott International, Inc., Class A(b)

    401,590       71,290,257  

McDonald’s Corp.

    286,203       71,310,339  

MGM Resorts International

    1,619,030       66,444,991  

Mohawk Industries, Inc.(b)

    495,467       69,890,575  

Newell Brands, Inc.(c)

    3,008,965       69,657,540  

NIKE, Inc., Class B

    529,463       66,024,036  

Norwegian Cruise Line Holdings
Ltd.(b)(c)

    3,712,595       74,363,278  

NVR, Inc.(b)

    13,356       58,448,661  

O’Reilly Automotive, Inc.(b)

    96,012       58,236,079  

Penn National Gaming, Inc.(b)(c)

    1,521,617       55,645,534  

Pool Corp.

    147,017       59,574,229  

PulteGroup, Inc.

    1,399,864       58,458,321  

PVH Corp.

    895,500       65,174,490  

Ralph Lauren Corp.(c)

    604,042       63,025,742  

Ross Stores, Inc.

    740,045       73,834,290  

Royal Caribbean Cruises
Ltd.(b)(c)

    948,820       73,751,779  

Starbucks Corp.

    785,010       58,593,146  

Tapestry, Inc.

    1,890,307       62,228,906  

Target Corp.

    313,609       71,706,698  

Tesla, Inc.(b)

    81,769       71,201,174  

TJX Cos., Inc. (The)

    1,056,984       64,771,979  

Tractor Supply Co.

    286,636       57,742,822  

Ulta Beauty, Inc.(b)

    176,197       69,914,970  

Under Armour, Inc., Class A(b)

    2,072,823       31,838,561  

Under Armour, Inc., Class C(b)(c)

    2,362,988       33,530,800  

VF Corp.(c)

    1,213,576       63,105,952  

Whirlpool Corp.(c)

    350,262       63,579,558  

Wynn Resorts Ltd.(b)

    897,925       63,285,754  

Yum! Brands, Inc.

    558,304       65,327,151  
   

 

 

 
          3,805,351,765  
   

 

 

 

Consumer Staples-7.02%

   

Altria Group, Inc.

    1,286,527       71,492,305  

Archer-Daniels-Midland Co.

    777,191       69,605,226  

Brown-Forman Corp., Class B

    1,027,020       69,262,229  

Campbell Soup Co.(c)

    1,539,741       72,706,570  

Church & Dwight Co., Inc.

    682,407       66,575,627  

Clorox Co. (The)

    499,007       71,592,534  

Coca-Cola Co. (The)

    1,121,079       72,432,914  

Colgate-Palmolive Co.

    880,188       67,818,485  

Conagra Brands, Inc.

    2,157,151       75,349,285  

Constellation Brands, Inc., Class A

    305,766       75,245,955  

Costco Wholesale Corp.

    123,294       65,557,886  

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

    245,663       64,869,772  

General Mills, Inc.

    1,043,017       73,772,592  

Hershey Co. (The)

    317,210       71,616,502  

Hormel Foods Corp.(c)

    1,286,527       67,401,150  

JM Smucker Co. (The)

    504,014       69,014,637  

Kellogg Co.

    1,085,218       74,337,433  

Kimberly-Clark Corp.

    552,419       76,692,330  

Kraft Heinz Co. (The)

    1,737,976       74,089,917  

Kroger Co. (The)

    1,162,071       62,705,351  

Lamb Weston Holdings, Inc.

    1,282,484       84,772,192  

 

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

 

  38  

 

 

 

 


 

Invesco S&P 500® Equal Weight ETF (RSP)–(continued)

April 30, 2022

    

 

        Shares       Value  

Consumer Staples-(continued)

   

McCormick & Co., Inc.

    672,919     $ 67,675,464  

Molson Coors Beverage Co., Class B(c)

    1,277,621       69,170,401  

Mondelez International, Inc., Class A

    1,098,340       70,820,963  

Monster Beverage Corp.(b)

    886,638       75,967,144  

PepsiCo, Inc.

    422,286       72,510,729  

Philip Morris International, Inc.

    730,543       73,054,300  

Procter & Gamble Co. (The)

    453,548       72,817,131  

Sysco Corp.

    834,417       71,325,965  

Tyson Foods, Inc., Class A

    741,038       69,035,100  

Walgreens Boots Alliance, Inc.

    1,368,591       58,028,258  

Walmart, Inc.

    457,142       69,938,155  
   

 

 

 
      2,267,254,502  
   

 

 

 

Energy-4.28%

   

APA Corp.

    1,663,778       68,098,434  

Baker Hughes Co., Class A

    1,725,605       53,528,267  

Chevron Corp.

    379,979       59,531,310  

ConocoPhillips

    660,248       63,066,889  

Coterra Energy, Inc.

    2,534,639       72,972,257  

Devon Energy Corp.

    1,107,788       64,440,028  

Diamondback Energy, Inc.

    501,230       63,270,263  

EOG Resources, Inc.

    562,181       65,640,254  

Exxon Mobil Corp.

    765,079       65,222,985  

Halliburton Co.

    1,736,054       61,838,243  

Hess Corp.(c)

    686,409       70,748,176  

Kinder Morgan, Inc.

    3,587,813       65,118,806  

Marathon Oil Corp.

    2,802,881       69,847,794  

Marathon Petroleum Corp.

    828,132       72,262,798  

Occidental Petroleum Corp.

    1,121,365       61,775,998  

ONEOK, Inc.

    983,242       62,268,716  

Phillips 66

    804,116       69,765,104  

Pioneer Natural Resources
Co.(c)

    279,972       65,085,091  

Schlumberger N.V.(c)

    1,514,575       59,083,571  

Valero Energy Corp.

    708,359       78,967,861  

Williams Cos., Inc. (The)(c)

    2,036,119       69,818,520  
   

 

 

 
          1,382,351,365  
   

 

 

 

Financials-12.68%

   

Aflac, Inc.

    1,082,791       62,022,268  

Allstate Corp. (The)

    526,776       66,658,235  

American Express Co.

    386,919       67,598,618  

American International Group, Inc.

    1,139,253       66,657,693  

Ameriprise Financial, Inc.

    238,899       63,425,296  

Aon PLC, Class A

    216,125       62,241,839  

Arthur J. Gallagher & Co.

    422,582       71,200,841  

Assurant, Inc.

    382,847       69,632,212  

Bank of America Corp.

    1,609,903       57,441,339  

Bank of New York Mellon Corp. (The)

    1,288,701       54,202,764  

Berkshire Hathaway, Inc., Class B(b)

    195,291       63,045,794  

BlackRock, Inc.

    94,376       58,954,800  

Brown & Brown, Inc.

    1,035,400       64,174,092  

Capital One Financial Corp.(c)

    499,270       62,219,027  

Cboe Global Markets, Inc.

    569,627       64,356,458  

Charles Schwab Corp. (The)

    809,318       53,682,063  

Chubb Ltd.

    322,326       66,544,203  

Cincinnati Financial Corp.

    533,645       65,456,896  

Citigroup, Inc.

    1,176,350       56,711,833  

Citizens Financial Group, Inc.

    1,385,083       54,572,270  

CME Group, Inc., Class A

    287,332       63,023,401  

Comerica, Inc.

    737,740       60,420,906  

Discover Financial Services

    611,978       68,823,046  
        Shares       Value  

Financials-(continued)

   

Everest Re Group Ltd.

    239,295     $ 65,736,729  

FactSet Research Systems, Inc.

    157,346       63,487,538  

Fifth Third Bancorp

    1,475,660       55,381,520  

First Republic Bank

    404,629       60,378,739  

Franklin Resources, Inc.(c)

    2,382,272       58,580,068  

Globe Life, Inc.

    670,673       65,779,608  

Goldman Sachs Group, Inc. (The)

    199,214       60,857,885  

Hartford Financial Services Group, Inc. (The)

    969,817       67,819,303  

Huntington Bancshares, Inc.

    4,411,323       58,008,897  

Intercontinental Exchange, Inc.

    513,676       59,488,818  

Invesco Ltd.(d)

    3,240,408       59,558,699  

JPMorgan Chase & Co.

    503,822       60,136,194  

KeyCorp

    2,833,051       54,706,215  

Lincoln National Corp.

    1,051,728       63,261,439  

Loews Corp.

    1,067,519       67,082,894  

M&T Bank Corp.

    376,998       62,822,947  

MarketAxess Holdings, Inc.

    188,862       49,785,912  

Marsh & McLennan Cos., Inc.

    434,186       70,207,876  

MetLife, Inc.

    1,011,411       66,429,474  

Moody’s Corp.

    213,400       67,536,832  

Morgan Stanley

    763,077       61,496,375  

MSCI, Inc.

    141,962       59,801,492  

Nasdaq, Inc.

    393,881       61,985,053  

Northern Trust Corp.

    618,034       63,688,404  

PNC Financial Services Group, Inc. (The)

    356,383       59,195,216  

Principal Financial Group, Inc.(c)

    998,315       68,025,184  

Progressive Corp. (The)

    615,656       66,096,828  

Prudential Financial, Inc.

    612,351       66,446,207  

Raymond James Financial, Inc.

    675,592       65,843,196  

Regions Financial Corp.

    2,963,673       61,407,305  

S&P Global, Inc.(c)

    171,119       64,426,346  

Signature Bank

    224,392       54,358,962  

State Street Corp.

    781,914       52,364,781  

SVB Financial Group(b)

    122,573       59,771,498  

Synchrony Financial

    1,853,422       68,224,464  

T. Rowe Price Group, Inc.(c)

    476,442       58,621,424  

Travelers Cos., Inc. (The)

    373,870       63,954,202  

Truist Financial Corp.

    1,136,519       54,950,694  

U.S. Bancorp

    1,233,219       59,885,115  

W.R. Berkley Corp.

    1,032,225       68,632,640  

Wells Fargo & Co.

    1,339,677       58,450,108  

Willis Towers Watson PLC

    294,001       63,169,055  

Zions Bancorporation N.A.

    1,011,257       57,146,133  
   

 

 

 
          4,098,054,163  
   

 

 

 

Health Care-12.80%

   

Abbott Laboratories

    569,529       64,641,542  

AbbVie, Inc.

    436,695       64,141,762  

ABIOMED, Inc.(b)(c)

    226,278       64,846,749  

Agilent Technologies, Inc.

    498,445       59,449,535  

Align Technology, Inc.(b)

    161,893       46,934,400  

AmerisourceBergen Corp.

    449,586       68,017,866  

Amgen, Inc.

    283,777       66,173,959  

Anthem, Inc.

    137,068       68,798,541  

Baxter International, Inc.(c)

    845,184       60,058,775  

Becton, Dickinson and Co.

    261,385       64,611,758  

Biogen, Inc.(b)

    328,517       68,147,566  

Bio-Rad Laboratories, Inc., Class A(b)

    122,732       62,846,148  

Bio-Techne Corp.

    161,826       61,443,714  

 

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

 

  39  

 

 

 

 


 

Invesco S&P 500® Equal Weight ETF (RSP)–(continued)

April 30, 2022

    

 

        Shares       Value  

Health Care-(continued)

   

Boston Scientific Corp.(b)

    1,557,217     $ 65,574,408  

Bristol-Myers Squibb Co.

    943,843       71,043,063  

Cardinal Health, Inc.

    1,235,058       71,695,117  

Catalent, Inc.(b)

    675,661       61,187,860  

Centene Corp.(b)

    779,011       62,749,336  

Cerner Corp.

    695,534       65,129,804  

Charles River Laboratories International, Inc.(b)

    250,013       60,380,640  

Cigna Corp.

    286,215       70,632,138  

Cooper Cos., Inc. (The)

    170,996       61,736,396  

CVS Health Corp.

    628,617       60,428,952  

Danaher Corp.

    247,231       62,087,121  

DaVita, Inc.(b)

    590,523       63,994,978  

DENTSPLY SIRONA, Inc.

    1,331,605       53,250,884  

DexCom, Inc.(b)

    166,578       68,060,439  

Edwards Lifesciences Corp.(b)

    627,875       66,416,617  

Eli Lilly and Co.

    244,293       71,365,314  

Gilead Sciences, Inc.

    1,119,565       66,434,987  

HCA Healthcare, Inc.

    238,219       51,109,886  

Henry Schein, Inc.(b)

    771,545       62,572,300  

Hologic, Inc.(b)

    935,301       67,332,319  

Humana, Inc.

    152,412       67,756,279  

IDEXX Laboratories, Inc.(b)

    130,398       56,133,731  

Illumina, Inc.(b)

    213,812       63,427,330  

Incyte Corp.(b)

    878,206       65,830,322  

Intuitive Surgical, Inc.(b)

    237,343       56,796,180  

IQVIA Holdings, Inc.(b)

    304,056       66,281,167  

Johnson & Johnson

    383,208       69,153,716  

Laboratory Corp. of America Holdings(b)

    244,521       58,753,506  

McKesson Corp.

    231,587       71,701,651  

Medtronic PLC

    625,684       65,296,382  

Merck & Co., Inc.

    829,822       73,596,913  

Mettler-Toledo International,
Inc.(b)

    49,407       63,118,925  

Moderna, Inc.(b)

    469,652       63,125,925  

Molina Healthcare, Inc.(b)

    207,158       64,933,675  

Organon & Co.(c)

    1,812,501       58,598,157  

PerkinElmer, Inc.

    389,626       57,123,068  

Pfizer, Inc.

    1,291,791       63,388,184  

Quest Diagnostics, Inc.

    476,408       63,762,447  

Regeneron Pharmaceuticals, Inc.(b)

    99,200       65,383,712  

ResMed, Inc.

    272,537       54,499,224  

STERIS PLC(c)

    297,046       66,553,156  

Stryker Corp.

    262,104       63,235,211  

Teleflex, Inc.

    193,352       55,225,198  

Thermo Fisher Scientific, Inc.

    122,750       67,870,930  

UnitedHealth Group, Inc.

    134,420       68,359,291  

Universal Health Services, Inc., Class B(c)

    431,478       52,868,999  

Vertex Pharmaceuticals, Inc.(b)

    275,225       75,196,974  

Viatris, Inc.

    6,480,842       66,947,098  

Waters Corp.(b)

    207,249       62,800,592  

West Pharmaceutical Services, Inc.

    178,715       56,305,948  

Zimmer Biomet Holdings, Inc.

    546,544       65,995,188  

Zoetis, Inc.

    350,465       62,119,921  
   

 

 

 
          4,135,433,874  
   

 

 

 

Industrials-14.28%

   

3M Co.

    460,668       66,437,539  

A.O. Smith Corp.

    988,047       57,731,586  

Alaska Air Group, Inc.(b)(c)

    1,330,269       72,353,331  

        Shares       Value  

Industrials-(continued)

   

Allegion PLC

    583,560     $      66,665,894  

American Airlines Group, Inc.(b)(c)

    4,631,560       86,934,381  

AMETEK, Inc.

    511,590       64,593,353  

Boeing Co. (The)(b)

    368,563       54,856,917  

C.H. Robinson Worldwide, Inc.(c)

    635,151       67,421,279  

Carrier Global Corp.

    1,502,675       57,507,372  

Caterpillar, Inc.

    302,365       63,659,927  

Cintas Corp

    175,828       69,849,431  

Copart, Inc.(b)

    562,286       63,903,804  

CSX Corp.

    1,871,709       64,274,487  

Cummins, Inc.

    326,660       61,800,805  

Deere & Co.

    167,015       63,056,513  

Delta Air Lines, Inc.(b)

    2,024,648       87,120,603  

Dover Corp.

    428,263       57,087,458  

Eaton Corp. PLC

    441,913       64,086,223  

Emerson Electric Co.

    698,310       62,973,596  

Equifax, Inc.

    289,922       59,004,925  

Expeditors International of Washington, Inc.

    652,347       64,628,017  

Fastenal Co.

    1,203,250       66,551,757  

FedEx Corp.

    304,657       60,547,532  

Fortive Corp.

    1,154,783       66,400,023  

Fortune Brands Home & Security, Inc.

    774,019       55,148,854  

Generac Holdings, Inc.(b)(c)

    230,783       50,629,175  

General Dynamics Corp.

    279,601       66,134,025  

General Electric Co.

    703,646       52,456,809  

Honeywell International, Inc.

    356,210       68,930,197  

Howmet Aerospace, Inc.(c)

    1,925,907       65,711,947  

Huntington Ingalls Industries, Inc.

    314,951       67,002,676  

IDEX Corp.

    342,592       65,030,813  

Illinois Tool Works, Inc.

    318,747       62,828,221  

Ingersoll Rand, Inc.

    1,364,365       59,977,485  

J.B. Hunt Transport Services, Inc.

    321,233       54,882,658  

Jacobs Engineering Group, Inc.

    519,507       71,977,695  

Johnson Controls International PLC

    1,073,698       64,282,299  

L3Harris Technologies, Inc.

    260,477       60,498,388  

Leidos Holdings, Inc.

    636,799       65,915,064  

Lockheed Martin Corp.

    148,422       64,136,115  

Masco Corp.

    1,208,514       63,676,603  

Nielsen Holdings PLC

    3,708,441       99,423,303  

Nordson Corp.

    299,726       64,647,901  

Norfolk Southern Corp.

    242,863       62,629,510  

Northrop Grumman Corp.

    149,185       65,551,889  

Old Dominion Freight Line, Inc.

    210,421       58,943,131  

Otis Worldwide Corp.

    896,953       65,334,057  

PACCAR, Inc.

    759,131       63,045,830  

Parker-Hannifin Corp.

    239,667       64,906,617  

Pentair PLC

    1,206,974       61,253,931  

Quanta Services, Inc.

    526,923       61,112,530  

Raytheon Technologies Corp.

    671,188       63,702,453  

Republic Services, Inc.

    512,960       68,875,139  

Robert Half International, Inc.

    596,689       58,660,496  

Rockwell Automation, Inc.

    252,875       63,893,926  

Rollins, Inc.(c)

    2,016,668       67,639,045  

Snap-on, Inc.

    315,506       67,041,870  

Southwest Airlines Co.(b)

    1,613,907       75,401,735  

Stanley Black & Decker, Inc.

    443,273       53,259,251  

Textron, Inc.

    938,611       64,998,812  

Trane Technologies PLC(c)

    436,358       61,042,121  

TransDigm Group, Inc.(b)

    104,181       61,967,901  

 

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

 

  40  

 

 

 

 


 

Invesco S&P 500® Equal Weight ETF (RSP)–(continued)

April 30, 2022

    

 

        Shares       Value  

Industrials-(continued)

   

Union Pacific Corp.

    243,292     $ 57,000,883  

United Airlines Holdings, Inc.(b)(c)

    1,862,272       94,044,736  

United Parcel Service, Inc., Class B

    318,685       57,356,926  

United Rentals, Inc.(b)

    201,118       63,657,869  

Verisk Analytics, Inc.

    356,594       72,763,006  

W.W. Grainger, Inc.

    137,379       68,693,621  

Wabtec Corp.

    729,177       65,560,304  

Waste Management, Inc.

    428,909       70,529,796  

Xylem, Inc.

    776,350       62,496,175  
   

 

 

 
          4,614,100,541  
   

 

 

 

Information Technology-14.91%

 

Accenture PLC, Class A

    208,633       62,665,008  

Adobe, Inc.(b)

    155,904       61,730,189  

Advanced Micro Devices, Inc.(b)

    622,446       53,231,582  

Akamai Technologies, Inc.(b)

    598,683       67,220,127  

Amphenol Corp., Class A

    882,063       63,067,505  

Analog Devices, Inc.

    439,919       67,914,695  

ANSYS, Inc.(b)

    221,119       60,960,297  

Apple, Inc.

    414,949       65,416,710  

Applied Materials, Inc.

    525,226       57,958,689  

Arista Networks, Inc.(b)

    541,678       62,601,726  

Autodesk, Inc.(b)

    337,485       63,879,161  

Automatic Data Processing, Inc.

    306,249       66,817,407  

Broadcom, Inc.

    112,319       62,268,530  

Broadridge Financial Solutions, Inc.

    448,832       64,690,156  

Cadence Design Systems, Inc.(b)

    447,891       67,564,357  

CDW Corp.

    381,762       62,295,923  

Ceridian HCM Holding, Inc.(b)

    1,057,828       59,375,886  

Cisco Systems, Inc.

    1,187,285       58,153,219  

Citrix Systems, Inc.

    642,664       64,330,666  

Cognizant Technology Solutions Corp., Class A

    738,252       59,724,587  

Corning, Inc.

    1,781,858       62,703,583  

DXC Technology Co.(b)

    2,124,921       60,985,233  

Enphase Energy, Inc.(b)

    379,449       61,243,069  

EPAM Systems, Inc.(b)

    324,546       86,001,445  

F5, Inc.(b)

    333,879       55,894,683  

Fidelity National Information Services, Inc.

    726,778       72,060,039  

Fiserv, Inc.(b)

    689,479       67,513,784  

FleetCor Technologies, Inc.(b)

    282,942       70,599,688  

Fortinet, Inc.(b)

    232,814       67,285,574  

Gartner, Inc.(b)

    232,244       67,478,494  

Global Payments, Inc.

    511,206       70,024,998  

Hewlett Packard Enterprise Co.

    3,923,643       60,463,339  

HP, Inc.(c)

    1,789,549       65,551,180  

Intel Corp.

    1,417,067       61,769,951  

International Business Machines Corp.

    523,898       69,264,555  

Intuit, Inc.

    147,927       61,944,431  

IPG Photonics Corp.(b)(c)

    586,190       55,383,231  

Jack Henry & Associates, Inc.(c)

    346,818       65,749,756  

Juniper Networks, Inc.

    1,959,264       61,756,001  

Keysight Technologies, Inc.(b)

    445,030       62,424,358  

KLA Corp.

    200,801       64,107,727  

Lam Research Corp.

    134,278       62,541,321  

Mastercard, Inc., Class A

    199,880       72,632,394  

Microchip Technology, Inc.(c)

    940,608       61,327,642  

Micron Technology, Inc.

    891,886       60,817,706  

Microsoft Corp.

    232,049       64,398,238  

        Shares       Value  

Information Technology-(continued)

 

Monolithic Power Systems, Inc.

    163,844     $ 64,266,171  

Motorola Solutions, Inc.

    292,650       62,536,379  

NetApp, Inc.

    772,036       56,551,637  

NortonLifeLock, Inc.(c)

    2,350,934       58,867,387  

NVIDIA Corp.

    293,649       54,463,080  

NXP Semiconductors N.V. (China)

    363,853       62,182,478  

Oracle Corp.

    834,417       61,246,208  

Paychex, Inc.

    538,687       68,267,804  

Paycom Software, Inc.(b)

    214,261       60,308,044  

PayPal Holdings, Inc.(b)

    672,577       59,139,696  

PTC, Inc.(b)

    624,977       71,378,623  

Qorvo, Inc.(b)

    525,268       59,764,993  

QUALCOMM, Inc.

    426,034       59,512,689  

Roper Technologies, Inc.

    150,275       70,617,228  

salesforce.com, inc.(b)

    328,143       57,733,479  

Seagate Technology Holdings PLC

    743,614       61,006,093  

ServiceNow, Inc.(b)(c)

    126,889       60,665,631  

Skyworks Solutions, Inc.

    509,046       57,674,912  

SolarEdge Technologies,
Inc.(b)(c)

    204,447       51,195,573  

Synopsys, Inc.(b)

    221,067       63,399,805