LOGO       

 

Invesco Annual Report to Shareholders

  April 30, 2022
  PBE   Invesco Dynamic Biotechnology & Genome ETF
  PKB   Invesco Dynamic Building & Construction ETF
  PXE   Invesco Dynamic Energy Exploration & Production ETF
  PBJ   Invesco Dynamic Food & Beverage ETF
  PEJ   Invesco Dynamic Leisure and Entertainment ETF
  PBS   Invesco Dynamic Media ETF
  PXQ   Invesco Dynamic Networking ETF
  PXJ   Invesco Dynamic Oil & Gas Services ETF
  PJP   Invesco Dynamic Pharmaceuticals ETF
  PSI   Invesco Dynamic Semiconductors ETF
  PSJ   Invesco Dynamic Software ETF


 

Table of Contents

 

The Market Environment    3
Management’s Discussion of Fund Performance    4
Liquidity Risk Management Program    26
Schedules of Investments   

Invesco Dynamic Biotechnology & Genome ETF (PBE)

   27

Invesco Dynamic Building & Construction ETF (PKB)

   29

Invesco Dynamic Energy Exploration & Production ETF (PXE)

   31

Invesco Dynamic Food & Beverage ETF (PBJ)

   33

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

   35

Invesco Dynamic Media ETF (PBS)

   37

Invesco Dynamic Networking ETF (PXQ)

   39

Invesco Dynamic Oil & Gas Services ETF (PXJ)

   41

Invesco Dynamic Pharmaceuticals ETF (PJP)

   43

Invesco Dynamic Semiconductors ETF (PSI)

   45

Invesco Dynamic Software ETF (PSJ)

   47
Statements of Assets and Liabilities    50
Statements of Operations    52
Statements of Changes in Net Assets    54
Financial Highlights    58
Notes to Financial Statements    66
Report of Independent Registered Public Accounting Firm    78
Fund Expenses    79
Tax Information    81
Trustees and Officers    82
Approval of Investment Advisory Contracts    92

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

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

Equity markets were volatile in the fourth quarter of 2021 amid record inflation and the emergence of a new COVID-19 variant. Pandemic-related supply chain disruptions and labor shortages intensified during the quarter, resulting in broadly higher input costs for companies and consumers alike. Additionally, the price of oil (West Texas Intermediate) rose to nearly $85 per barrel in October,3 causing higher gas prices for consumers and pushing energy stocks higher. The CPI reported for November increased 0.8%, resulting in a 6.8% increase over the last 12 months, the highest since 1982.2 To combat inflation, the Fed announced a faster pace of tapering at its December meeting, pledging to end its asset purchase program by March 2022. The Fed also announced the potential for three interest rate increases in 2022. With solid corporate earnings and optimism about the COVID-19 Omicron variant reporting milder symptoms, stocks rallied at 2021 year-end.

Equity markets declined in the first quarter of 2022 amid volatility sparked by Russia’s invasion of Ukraine, rising commodity prices, rampant global inflation and the Fed’s shift toward tighter monetary policy. Russia’s invasion exacerbated inflationary pressures, disrupting already strained supply chains and increasing shortages of oil, gas and raw materials. The price of oil rose sharply, with crude prices reaching their highest price per barrel since 2008.3 The CPI rose by 7.9% for the 12 months ended February 28, 2022, the largest 12-month increase since 1982.2 To combat inflation, the Fed raised the federal funds rate by one-quarter percentage point in March, with several more rate increases expected in 2022. As the war in Ukraine continued and corporate earnings in high-profile names, like Netflix reported slowing growth and profits, equity markets sold off for much of the month of April 2022. In this environment, US stocks had flat returns for the fiscal year ended April 30, 2022, of 0.21%, as measured by the S&P 500 Index.4

 

1 

Source: US Bureau of Economic Analysis

2 

Source: US Bureau of Labor Statistics

3 

Source: Bloomberg L.P.

4 

Source: Lipper Inc.

Global Equity

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

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

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

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

 

 

  3  

 


 

 

PBE    Management’s Discussion of Fund Performance
   Invesco Dynamic Biotechnology & Genome ETF (PBE)

 

As an index fund, the Invesco Dynamic Biotechnology & Genome ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Biotech & Genome Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index which is composed of common stocks of U.S. biotechnology and genome companies. These companies are engaged principally in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research. These companies may include, for example, biopharmaceutical companies that actively participate in the research and development, animal testing and partial human testing phases of drug development, typically using biotechnological techniques that required the use of living organisms, cells and/or components of cells; outsourced services companies that utilize drug delivery technologies in the development of therapeutics for the biopharmaceutical industry or provide biopharmaceutical companies with novel biological targets and drug leads, and scientific products such as bio-analytical instruments, reagents, and chemicals. 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 (25.32)%. On a net asset value (“NAV”) basis, the Fund returned (25.32)%. During the same time period, the Index returned (24.84)%. 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, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500® Biotechnology Index (the “Benchmark Index”) returned 2.24%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 26 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the biotech industry. It is important to note, however, that the Index includes stocks from its proprietary “Biotechnology & Genome Group Universe” of which approximately 95% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 5% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology

companies. This Benchmark Index is relevant as a comparison, but the disparity compared to pure biotechnology exposure may produce potentially significant differences in performance when compared to the Fund.

Relative to the Benchmark Index, the Fund was most overweight in the life sciences tools & services sub-industry and most underweight in the biotechnology sub-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 stock selection within the biotechnology sub-industry.

For the fiscal year ended April 30, 2022, no sub-industry contributed to the Fund’s return. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the life sciences tools & services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Dicerna Pharmaceuticals, Inc., a pharmaceuticals company (no longer held at fiscal year-end), and Alkermes PLC, a biotechnology company (portfolio average weight of 3.05%). Positions that detracted most significantly from the Fund’s return during this period included Novavax, Inc., a biotechnology company (no longer held at fiscal year-end), and FibroGen, Inc., a biotechnology company (portfolio average weight of 1.09%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Biotechnology      79.96  
Life Sciences Tools & Services      10.12  
Health Care Services      5.09  
Pharmaceuticals      4.87  
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   
Vertex Pharmaceuticals, Inc.      6.24  
Incyte Corp.      5.78  
Regeneron Pharmaceuticals, Inc.      5.75  
Amgen, Inc.      5.54  
Biogen, Inc.      5.20  
Gilead Sciences, Inc.      5.12  
Bio-Techne Corp.      4.99  
Catalent, Inc.      4.87  
Halozyme Therapeutics, Inc.      3.49  
Alkermes PLC      3.31  
Total      50.29  

 

*

Excluding money market fund holdings.    

 

 

  4  

 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE) (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  
Dynamic Biotech & Genome Intellidex® Index     (24.84 )%      3.22     9.96     6.12     34.60     10.34     167.61       8.89     320.21
S&P Composite 1500® Biotechnology Index     2.24       11.56       38.86       7.66       44.62       14.76       296.18         12.58       637.11  
Fund                    
NAV Return     (25.32     2.54       7.83       5.59       31.27       10.02       159.85         8.49       295.05  
Market Price Return     (25.32     2.53       7.77       5.57       31.15       10.04       160.29         8.49       294.58  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.59%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  5  

 


 

 

PKB    Management’s Discussion of Fund Performance
   Invesco Dynamic Building & Construction ETF (PKB)

 

As an index fund, the Invesco Dynamic Building & Construction ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Building & Construction Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. building and construction companies. These companies are engaged primarily in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large- scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies also may include manufacturers of building materials for home improvement and general construction projects and specialized machinery used for building and construction; companies that provide installation, maintenance or repair work; and land developers. 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 (19.39)%. On a net asset value (“NAV”) basis, the Fund returned (19.31)%. During the same time period, the Index returned (18.86)%. 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 Composite 1500® Construction & Engineering Index (the “Benchmark Index”) returned (0.01)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 13 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the building & construction industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the homebuilding sub-industry and most underweight in the construction & engineering sub-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 homebuilding and building products sub-industries.

For the fiscal year ended April 30, 2022, the gas utilities sub- industry contributed most significantly to the Fund’s return. The homebuilding sub-industry detracted most significantly from the Fund’s return, followed by the construction & engineering sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Southwest Gas Holdings, Inc., a gas utilities company (portfolio average weight of 2.93%) and Carlisle Cos. Inc., a building products company (portfolio average weight of 1.91%). Positions that detracted most significantly from the Fund’s return during this period included D.R. Horton, Inc., a homebuilding company (portfolio average weight of 1.32%) and Dream Finders Homes, Inc., Class A, a homebuilding company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Homebuilding      44.38  
Construction Materials      15.48  
Building Products      11.53  
Home Improvement Retail      10.34  
Specialty Stores      5.55  
Gas Utilities      4.04  
Sub-Industry Types Each Less Than 3%      8.65  
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   
Tractor Supply Co.      5.55  
Home Depot, Inc. (The)      5.25  
Vulcan Materials Co.      5.19  
Martin Marietta Materials, Inc.      5.15  
Lowe’s Cos., Inc.      5.09  
NVR, Inc.      5.01  
Lennar Corp., Class A      4.91  
D.R. Horton, Inc.      4.78  
Southwest Gas Holdings, Inc.      4.04  
Carlisle Cos., Inc.      3.35  
Total      48.32  

 

*

Excluding money market fund holdings.

 

 

  6  

 


 

Invesco Dynamic Building & Construction ETF (PKB) (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  
Dynamic Building & Construction Intellidex® Index     (18.86 )%      12.37     41.88     8.00     46.95     12.37     221.14       7.65     237.71
S&P Composite 1500® Construction & Engineering Index     (0.01     18.54       66.58       12.13       77.24       9.22       141.64         8.53       286.16  
Fund                    
NAV Return     (19.31     11.68       39.31       7.33       42.43       11.59       199.31         6.83       197.68  
Market Price Return     (19.39     11.67       39.26       7.32       42.34       11.61       199.96         6.82       197.48  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  7  

 


 

 

PXE    Management’s Discussion of Fund Performance
   Invesco Dynamic Energy Exploration & Production ETF (PXE)

 

As an index fund, the Invesco Dynamic Energy Exploration & Production ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Energy Exploration & Production Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. companies involved in the exploration and production of natural resources used to produce energy. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells. These companies may include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid. 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 88.04%. On a net asset value (“NAV”) basis, the Fund returned 88.75%. During the same time period, the Index returned 90.05%. 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, the effect of which was compounded during a time period of high returns, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500® Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned 84.39%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 23 securities. The Benchmark Index was selected for its recognition in the marketplace and because its performance comparison is a useful measure for investors as a broad representation of the oil & gas exploration & production sub-industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-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 stock selection in the oil & gas exploration & production sub-industry.

For the fiscal year ended April 30, 2022, the oil & gas refining & marketing sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas exploration & production sub-industry. There were no detracting sub-industries during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Occidental Petroleum Corp., an integrated oil & gas company (portfolio average weight of 3.92%) and Antero Resources Corp., an oil & gas exploration & production company (portfolio average weight of 3.01%). Positions that detracted most significantly from the Fund’s return during this period included Delek US Holdings Inc, an oil & gas refining & marketing company (no longer held at fiscal year-end) and Civitas Resources, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Oil & Gas Exploration & Production      71.45  
Oil & Gas Refining & Marketing      20.07  
Integrated Oil & Gas      5.80  
Gas Utilities      2.61  
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   
Occidental Petroleum Corp.      5.80  
Valero Energy Corp.      5.24  
Comstock Resources, Inc.      5.07  
Marathon Petroleum Corp.      4.66  
Devon Energy Corp.      4.46  
ConocoPhillips      4.40  
EOG Resources, Inc.      4.34  
Pioneer Natural Resources Co.      4.26  
Phillips 66      4.16  
Antero Resources Corp.      3.80  
Total      46.19  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE) (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  

Dynamic Energy Exploration & Production Intellidex® Index

    90.05     16.38     57.64     9.69     58.79     4.61     56.87       5.95     159.75

S&P Composite 1500® Oil & Gas Exploration & Production Index

    84.39       15.24       53.04       8.74       52.05       2.43       27.11         4.26       99.02  
Fund                    

NAV Return

    88.75       15.82       55.35       9.08       54.45       4.02       48.35         5.34       136.16  

Market Price Return

    88.04       15.71       54.93       9.05       54.19       4.01       48.17         5.32       135.49  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.95% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  9  

 


 

 

PBJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Food & Beverage ETF (PBJ)

 

As an index fund, the Invesco Dynamic Food & Beverage ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Food & Beverage Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. food and beverage companies. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. These companies may include consumer manufacturing of agricultural inputs like livestock and crops, as well as processed food and beverage products; food and beverage stores such as grocery stores, supermarkets, wholesale distributors of grocery items; and food and beverage services like restaurants, bars, snack bars, coffeehouses and other establishments providing food and refreshment. Companies with focused operations, such as tobacco growers and manufacturers or pet supplies stores, are specifically excluded from this universe. 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 14.18%. On a net asset value (“NAV”) basis, the Fund returned 14.14%. During the same time period, the Index returned 14.85%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Food Beverage & Tobacco Index (the “Benchmark Index”) returned 15.07%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 46 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the food & beverage industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the packaged foods & meats sub-industry and most underweight in the soft drinks sub-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 personal products sub-industry, followed by the Fund’s underweight allocation to the soft drinks sub-industry.

For the fiscal year ended April 30, 2022, the food retail sub-industry contributed most significantly to the Fund’s return, followed by the packaged foods & meats sub-industry. The personal products and brewers sub-industries detracted most significantly from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Albertsons Cos., Inc., Class A, a food retail company (portfolio average weight of 2.89%) and Coca-Cola Consolidated, Inc., a soft drinks company (portfolio average weight of 2.74%). Positions that detracted most significantly from the Fund’s return during this period included Herbalife Nutrition Ltd., a personal products company (portfolio average weight of 2.53%) and J & J Snack Foods Corp., a packaged foods & meats company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Packaged Foods & Meats      44.34  
Soft Drinks      16.30  
Food Retail      15.00  
Agricultural Products      8.48  
Food Distributors      6.16  
Distillers & Vintners      5.37  
Sub-Industry Types Each Less Than 3%      4.26  
Money Market Funds Plus Other Assets Less Liabilities      0.09  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Archer-Daniels-Midland Co.      5.53  
Constellation Brands, Inc., Class A      5.37  
Hershey Co. (The)      5.28  
General Mills, Inc.      4.97  
Coca-Cola Co. (The)      4.91  
PepsiCo, Inc.      4.83  
Keurig Dr Pepper, Inc.      4.59  
Mondelez International, Inc., Class A      4.59  
Weis Markets, Inc.      3.41  
Andersons, Inc. (The)      3.26  
Total      46.74  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

Invesco Dynamic Food & Beverage ETF (PBJ) (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  

Dynamic Food & Beverage Intellidex® Index

    14.85     12.88     43.84     8.54     50.65     11.01     184.13       9.17     338.62

S&P Composite 1500® Food Beverage & Tobacco Index

    15.07       11.81       39.79       7.64       44.52       10.89       181.16         11.42       518.89  
Fund                    

NAV Return

    14.14       12.24       41.39       7.93       46.44       10.33       167.24         8.48       293.96  

Market Price Return

    14.18       12.29       41.60       7.95       46.62       10.34       167.48         8.48       294.31  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  11  

 


 

 

PEJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Leisure and Entertainment ETF (PEJ)

 

As an index fund, the Invesco Dynamic Leisure and Entertainment ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Leisure & Entertainment Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. leisure and entertainment companies. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include hospitality industry companies such as hotels, restaurants and bars, cruise lines, casinos, and all other recreation and amusement businesses, as well as entertainment programming companies engaged in the production of motion pictures, music by recording artists, programming for radio and television, related post-production and movie theaters. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2022, on a market price basis, the Fund returned (5.32)%. On a net asset value (“NAV”) basis, the Fund returned (5.47)%. During the same time period, the Index returned (5.14)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the S&P Composite 1500® Hotels Restaurants & Leisure Index (the “Benchmark Index”) returned (10.70)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the leisure & entertainment industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the movies & entertainment sub-industry and most underweight in the restaurants sub-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 relative overweight allocation to the movies & entertainment sub-industry.

For the fiscal year ended April 30, 2022, the movies & entertainment sub-industry contributed most significantly to the Fund’s return, followed by the hotels resorts & cruise lines sub-industry. The restaurants sub-industry detracted most significantly from the Fund’s return, followed by the broadcasting sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included AMC Entertainment Holdings, Inc., Class A, a movies & entertainment company (portfolio average weight of 0.94%) and Marriott International, Inc., Class A, a hotels resorts & cruise lines company (portfolio average weight of 2.13%). Positions that detracted most significantly from the Fund’s return during this period included Walt Disney Co. (The), a movies & entertainment company (portfolio average weight of 4.84%) and Eventbrite, Inc., Class A, an interactive media & services company (portfolio average weight of 2.70%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Movies & Entertainment      31.07  
Hotels, Resorts & Cruise Lines      21.06  
Casinos & Gaming      15.67  
Broadcasting      10.38  
Restaurants      8.40  
Leisure Facilities      5.74  
Food Distributors      5.54  
Interactive Media & Services      2.24  
Money Market Funds Plus Other Assets Less Liabilities      (0.10)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Marriott International, Inc., Class A      5.60  
Sysco Corp.      5.54  
McDonald’s Corp.      5.39  
Live Nation Entertainment, Inc.      4.89  
Booking Holdings, Inc.      4.78  
Fox Corp., Class A      4.68  
Expedia Group, Inc.      4.66  
Walt Disney Co. (The)      4.12  
Paramount Global, Class B      3.11  
Wyndham Hotels & Resorts, Inc.      3.10  
Total      45.87  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ) (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  
Dynamic Leisure & Entertainment Intellidex® Index     (5.14 )%      0.09     0.28     1.90     9.88     8.33     122.56       8.09     271.27
S&P Composite 1500® Hotels Restaurants & Leisure Index     (10.70     6.29       20.07       9.65       58.48       11.59       199.38         11.52       527.86  
Fund                    
NAV Return     (5.47     (0.47     (1.41     1.30       6.65       7.59       107.93         7.43       234.65  
Market Price Return     (5.32     (0.46     (1.37     1.30       6.66       7.59       107.75         7.43       234.75  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.55%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  13  

 


 

 

PBS    Management’s Discussion of Fund Performance
   Invesco Dynamic Media ETF (PBS)

 

As an index fund, the Invesco Dynamic Media ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Media Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. media companies. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry. These companies produce and distribute information and entertainment content and may include television and radio stations, broadcast and cable networks, motion picture companies, music producers, print publishers, and providers of content delivered via the internet, as well as direct to home satellite services, traditional cable services, and advertising and related services. 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 (21.92)%. On a net asset value (“NAV”) basis, the Fund returned (21.90)%. During the same time period, the Index returned (21.31)%. 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 Composite 1500® Media Index (the “Benchmark Index”) returned (26.11)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 22 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the media industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the interactive media & services sub-industry and most underweight in the cable & satellite sub-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 underweight allocation to and selection within the cable & satellite sub-industry.

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

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Meredith Corp., a publishing company (no longer held at fiscal year-end) and CarGurus, Inc., Class A, an interactive media & services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Netflix, Inc., a movies & entertainment company (portfolio average weight of 4.84%) and Spotify Technology SA, a movies & entertainment media company (portfolio average weight of 4.47%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Interactive Media & Services      30.81  
Broadcasting      20.36  
Movies & Entertainment      19.51  
Publishing      11.93  
Advertising      10.90  
IT Consulting & Other Services      3.33  
Cable & Satellite      3.21  
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   
Twitter, Inc.      8.80  
Meta Platforms, Inc., Class A      5.87  
Alphabet, Inc., Class A      5.21  
Walt Disney Co. (The)      4.46  
Match Group, Inc.      4.37  
Spotify Technology S.A.      4.02  
ZipRecruiter, Inc., Class A      3.75  
Paramount Global, Class B      3.37  
Gartner, Inc.      3.33  
Lions Gate Entertainment Corp., Class A      3.31  
Total      46.49  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

Invesco Dynamic Media ETF (PBS) (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  

Dynamic Media Intellidex® Index

    (21.31 )%      6.44     20.60     8.88     53.01     11.90     207.93       7.37     231.25

S&P Composite 1500® Media Index

    (26.11     0.23       0.68       2.87       15.21       10.96       182.82         8.34       285.51  
Fund                    

NAV Return

    (21.90     5.76       18.31       8.20       48.31       11.15       187.82         6.71       198.83  

Market Price Return

    (21.92     5.73       18.19       8.17       48.12       11.14       187.53         6.71       198.55  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  15  

 


 

 

PXQ    Management’s Discussion of Fund Performance
   Invesco Dynamic Networking ETF (PXQ)

 

As an index fund, the Invesco Dynamic Networking ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Networking Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. networking companies. These companies are principally engaged in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. These companies may include communications equipment companies that offer a broad range of access, transport, and connectivity equipment and devices which span across a diverse set of markets including enterprise networking, home networking, satellite, wireless (terrestrial), wireline wide area networking, and cable (CATV). Such companies also may provide integrated circuits specialized to facilitate communications within a network; software that enables, manages, supports, and secures enterprise networks; and equipment used to build storage networks, which are specialized, high speed networks dedicated to accessing storage data. 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 (4.91)%. On a net asset value (“NAV”) basis, the Fund returned (4.66)%. During the same time period, the Index returned (5.55)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to income received from the securities lending program in which the Fund participates, partially offset by the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Communications Equipment Index (the “Benchmark Index”) returned 2.70%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the communications equipment industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the communications equipment sub-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 relative overweight allocation to the application software sub-industry.

For the fiscal year ended April 30, 2022, the technology hardware storage & peripherals sub-industry contributed most significantly to the Fund’s return, followed by the semiconductors and systems software sub-industries, respectively. The application software sub-industry detracted most significantly from the Fund’s return, followed by the communications equipment and internet services & infrastructure sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Fortinet, Inc., a systems software company (portfolio average weight of 5.19%) and Marvell Technology, Inc., a semiconductors company (portfolio average weight of 2.78%). Positions that detracted most significantly from the Fund’s return for the fiscal year ended April 30, 2022, included Arqit Quantum, Inc. (United Kingdom), an application software company (portfolio average weight of 0.93%) and CommScope Holding Co., Inc., a communications equipment company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown

(% of the Fund’s Net Assets)
as of April 30, 2022
 
Communications Equipment      29.48  
Systems Software      26.04  
Application Software      16.80  
Semiconductors      11.26  
Electronic Components      7.93  
Technology Hardware, Storage & Peripherals      5.15  
Internet Services & Infrastructure      3.27  
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   
Palo Alto Networks, Inc.      6.33  
Fortinet, Inc.      5.21  
Apple, Inc.      5.15  
Amphenol Corp., Class A      5.12  
Marvell Technology, Inc.      4.67  
Cisco Systems, Inc.      4.67  
QUALCOMM, Inc.      4.52  
Datadog, Inc., Class A      4.08  
KnowBe4, Inc., Class A      3.63  
Qualys, Inc.      3.53  
Total      46.91  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco Dynamic Networking ETF (PXQ) (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  

Dynamic Networking Intellidex® Index

    (5.55 )%      9.15     30.02     14.12     93.53     12.27     218.13       11.41     517.94

S&P Composite 1500® Communications Equipment Index

    2.70       1.49       4.53       10.90       67.78       10.06       160.84         7.06       215.96  
Fund                    
NAV Return     (4.66     9.01       29.53       13.90       91.68       11.83       205.93         10.87       468.99  
Market Price Return     (4.91     8.95       29.34       13.85       91.28       11.82       205.69         10.86       467.92  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.73% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  17  

 


 

 

PXJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Oil & Gas Services ETF (PXJ)

 

As an index fund, the Invesco Dynamic Oil & Gas Services ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Oil Services Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. companies that assist in the production, processing and distribution of oil and gas. The Index may include companies engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing. 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 33.00%. On a net asset value (“NAV”) basis, the Fund returned 33.40%. During the same time period, the Index returned 36.18%. 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, the effect of which was compounded during a time period of high returns, and differences in the treatment of corporate actions.

During this same time period, the S&P Composite 1500® Energy Equipment & Services Index (the “Benchmark Index”) returned 50.51%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the oil & gas services industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas drilling sub-industry and most underweight in the oil & gas equipment & services sub-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 stock selection in the oil & gas equipment & services industry, as well as the Fund’s relative overweight allocation to the oil & gas storage & transportation sub-industry.

For the fiscal year ended April 30, 2022, the oil & gas equipment & services sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas drilling sub-industry. The oil & gas storage & transportation sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Patterson-UTI Energy, Inc., an oil & gas drilling company (portfolio average weight of 6.08%) and Halliburton Co., an oil & gas equipment & services company (portfolio average weight of 7.61%). Positions that detracted most significantly from the Fund’s return during this period included Oceaneering International, Inc., an oil & gas equipment & services company (portfolio average weight of 1.78%) and Scorpio Tankers Inc., an oil & gas storage & transportation company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Oil & Gas Equipment & Services      71.09  
Oil & Gas Drilling      20.96  
Oil & Gas Storage & Transportation      7.61  
Money Market Funds Plus Other Assets Less Liabilities      0.34  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Helmerich & Payne, Inc.      7.12  
Patterson-UTI Energy, Inc.      6.45  
Halliburton Co.      5.78  
Baker Hughes Co., Class A      5.57  
TechnipFMC PLC      5.48  
NOV, Inc.      5.32  
ChampionX Corp.      5.17  
Schlumberger N.V.      5.05  
NexTier Oilfield Solutions, Inc.      4.73  
Golar LNG Ltd.      4.53  
Total      55.20  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco Dynamic Oil & Gas Services ETF (PXJ) (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  

Dynamic Oil Services Intellidex® Index

    36.18     (10.44 )%      (28.17 )%      (13.56 )%      (51.73 )%      (12.18 )%      (72.73 )%        (6.04 )%      (64.28 )% 

S&P Composite 1500® Energy Equipment & Services Index

    50.51       (2.15     (6.32     (9.06     (37.80     (5.78     (44.87       (1.10     (16.65
Fund                    

NAV Return

    33.40       (11.60     (30.92     (14.40     (54.04     (12.91     (74.89       (6.72     (68.31

Market Price Return

    33.00       (11.60     (30.91     (14.40     (54.04     (12.91     (74.89       (6.72     (68.30

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2024. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.17% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  19  

 


 

 

PJP    Management’s Discussion of Fund Performance
   Invesco Dynamic Pharmaceuticals ETF (PJP)

 

As an index fund, the Invesco Dynamic Pharmaceuticals ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Pharmaceutical Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. pharmaceuticals companies. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. In accordance with the Index methodology, the various types of companies may include companies from the following segments of the pharmaceutical industry:

- Big Pharmaceutical: Large, vertically integrated drug companies that actively participate in all major phases of the drug development process, including research and development, animal and human testing, manufacturing and sales and marketing.

- Specialty Pharmaceutical: Midsize, often vertically integrated drug companies specializing in one or two therapeutic areas using both traditional chemical techniques and biotechnological techniques (involving living organisms, cells, and/or components of cells) to develop drugs.

- Generic Pharmaceutical: Generally midsize to small non-vertically integrated drug companies that actively participate only in the manufacturing and sometimes sales and marketing of patent- expired drugs.

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 (1.94)%. On a net asset value (“NAV”) basis, the Fund returned (1.89)%. During the same time period, the Index returned (1.40)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Pharmaceuticals Index (the “Benchmark Index”) returned 23.19%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 24 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the pharmaceuticals industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology,

whereas the Benchmark Index selects and weights stocks based on market capitalization.

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

For the fiscal year ended April 30, 2022, the pharmaceuticals sub-industry contributed most significantly to the Fund’s return. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the health care equipment sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Eli Lilly and Co., a pharmaceuticals company (portfolio average weight of 5.91%) and AbbVie, Inc., a biotechnology company (portfolio average weight of 5.88%). Positions that detracted most significantly from the Fund’s return during this period included Endo International PLC, a pharmaceuticals company (no longer held at fiscal year-end) and Taro Pharmaceutical Industries Ltd., a pharmaceuticals company (portfolio average weight of 3.17%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Pharmaceuticals      55.02  
Biotechnology      39.83  
Health Care Equipment      5.14  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Security   
Eli Lilly and Co.      6.50  
Merck & Co., Inc.      6.22  
Johnson & Johnson      5.96  
Amgen, Inc.      5.61  
Pfizer, Inc.      5.50  
AbbVie, Inc.      5.37  
Gilead Sciences, Inc.      5.18  
Abbott Laboratories      5.14  
Amphastar Pharmaceuticals, Inc.      4.20  
Pacira BioSciences, Inc.      3.67  
Total      53.35  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco Dynamic Pharmaceuticals ETF (PJP) (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  
Dynamic Pharmaceutical Intellidex® Index     (1.40 )%      8.17     26.58     6.12     34.58     11.39     193.98       12.18     593.65
S&P Composite 1500® Pharmaceuticals Index     23.19       14.71       50.95       12.26       78.28       13.65       259.59         10.00       398.51  
Fund                    
NAV Return     (1.89     7.59       24.53       5.52       30.83       10.76       177.82         11.52       528.18  
Market Price Return     (1.94     7.61       24.60       5.53       30.89       10.77       178.02         11.53       528.83  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  21  

 


 

 

PSI    Management’s Discussion of Fund Performance
   Invesco Dynamic Semiconductors ETF (PSI)

 

As an index fund, the Invesco Dynamic Semiconductors ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Semiconductor Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. semiconductor companies. These companies are principally engaged in the manufacture of semiconductors. These companies manufacture semiconductors that serve as the core electronic components of virtually all electronic equipment, make or test chips for third parties, and provide equipment or services used in the production of semiconductors and other thin film products like flat panel displays and thin film heads. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2022, on a market price basis, the Fund returned (9.41)%. On a net asset value (“NAV”) basis, the Fund returned (9.49)%. During the same time period, the Index returned (9.03)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500® Semiconductor Index (the “Benchmark Index”) returned 2.22%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 52 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the semiconductors industry.

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

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

For the fiscal year ended April 30, 2022, the life sciences tools & services sub-industry contributed most significantly to the Fund’s

return, followed by the specialty chemicals sub-industry. The semiconductors sub-industry detracted most significantly from the Fund’s return, followed by the semiconductor equipment sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Broadcom, Inc., a semiconductors company (portfolio average weight of 5.25%) and Monolithic Power Systems, Inc., a semiconductors company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Micron Technology, Inc., a semiconductors company (portfolio average weight of 2.28%) and Navitas Semiconductor Corp., a semiconductors company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Semiconductors      64.82  
Semiconductor Equipment      29.63  
Sub-Industry Types Each Less Than 3%      5.61  
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   
Texas Instruments, Inc.      5.92  
Broadcom, Inc.      5.56  
Analog Devices, Inc.      5.56  
Applied Materials, Inc.      4.91  
QUALCOMM, Inc.      4.88  
NVIDIA Corp.      4.59  
Micron Technology, Inc.      4.36  
Advanced Micro Devices, Inc.      4.28  
SiTime Corp.      2.92  
NXP Semiconductors N.V.      2.88  
Total      45.86  

 

*

Excluding money market fund holdings.

 

 

  22  

 


 

Invesco Dynamic Semiconductors ETF (PSI) (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  
Dynamic Semiconductor Intellidex® Index     (9.03 )%      24.68     93.80     22.09     171.32     23.02     694.01       13.86     790.91
S&P Composite 1500® Semiconductor Index     2.22       22.03       81.73       22.98       181.27       19.74       505.88         12.33       609.97  
Fund                    
NAV Return     (9.49     23.93       90.36       21.34       163.03       22.16       640.03         13.06       691.87  
Market Price Return     (9.41     23.96       90.49       21.31       162.76       22.19       641.85         13.06       691.30  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.56%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  23  

 


 

 

PSJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Software ETF (PSJ)

 

As an index fund, the Invesco Dynamic Software ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Software Intellidex® 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. software companies. These companies are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. These companies may include companies that design and market computer applications targeted toward various end user markets, including home/office, design/engineering, and IT infrastructure; as well as distributors of third-party software applications, primarily to resellers, retailers, and corporations. 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 (35.59)%. On a net asset value (“NAV”) basis, the Fund returned (35.56)%. During the same time period, the Index returned (35.23)%. 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 Composite 1500® Software & Services Index (the “Benchmark Index”) returned (5.11)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 84 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the software industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the systems software sub-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 interactive home entertainment sub-industry as well as an overweight allocation to and stock selection in the application software sub-industry.

For the fiscal year ended April 30, 2022, the data processing & outsourced services sub-industry contributed most significantly to the Fund’s return, followed by the health care services sub-industry. The application software sub-industry detracted most significantly from the Fund’s return, followed by the interactive home entertainment sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2022, included Vocera Communications, Inc., a communications equipment company (no longer held at fiscal year-end) and Box, Inc., Class A, an application software company (portfolio average weight of 1.36%). Positions that detracted most significantly from the Fund’s return during this period included ROBLOX Corp., Class A, an interactive home entertainment company (portfolio average weight of 4.13%) and Roku, Inc., Class A, an interactive home entertainment company (portfolio average weight of 3.33%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2022
 
Application Software      36.69  
Interactive Home Entertainment      14.36  
Data Processing & Outsourced Services      13.58  
Health Care Technology      10.68  
Systems Software      10.59  
Health Care Sevices      3.35  
Sub-Industry Types Each Less Than 3%      10.78  
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   
Cadence Design Systems, Inc.      6.09  
Cerner Corp.      5.57  
Synopsys, Inc.      5.41  
Microsoft Corp.      5.27  
Activision Blizzard, Inc.      5.08  
SS&C Technologies Holdings, Inc.      4.76  
Datadog, Inc., Class A      4.15  
Box, Inc., Class A      3.63  
ROBLOX Corp., Class A      3.47  
Signify Health, Inc., Class A      3.35  
Total      46.78  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco Dynamic Software ETF (PSJ) (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  
Dynamic Software Intellidex® Index     (35.23 )%      3.66     11.40     15.22     103.08     15.41     319.38       12.99     683.33
S&P Composite 1500® Software & Services Index     (5.11     16.22       56.99       19.94       148.19       18.73       456.71         13.84       788.30  
Fund                    
NAV Return     (35.56     3.10       9.61       14.54       97.11       14.67       293.05         12.29       605.01  
Market Price Return     (35.59     3.07       9.51       14.54       97.16       14.66       292.79         12.28       604.07  

 

Fund Inception: June 23, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.56%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  25  

 


 

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.

 

   

 

  26   

   
 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE)

April 30, 2022

 

Schedule of Investments(a)

 

          Shares           Value  

Common Stocks & Other Equity Interests-100.04%

 

Biotechnology-79.96%

 

Acadia Pharmaceuticals, Inc.(b)(c)

    228,349     $ 4,210,756  

Alkermes PLC(b)

    238,760       6,888,226  

Amgen, Inc.(c)

    49,436       11,527,981  

Arrowhead Pharmaceuticals, Inc.(b)(c)

    138,485       5,693,118  

Biogen, Inc.(b)

    52,178       10,823,804  

ChemoCentryx, Inc.(b)(c)

    200,176       3,695,249  

Dynavax Technologies Corp.(b)(c)

    486,660       4,297,208  

Emergent BioSolutions, Inc.(b)

    141,402       4,578,597  

Enanta Pharmaceuticals, Inc.(b)(c)

    91,520       5,893,888  

Exelixis, Inc.(b)(c)

    304,663       6,806,171  

FibroGen, Inc.(b)(c)

    413,514       3,845,680  

Gilead Sciences, Inc.

    179,526       10,653,073  

Halozyme Therapeutics, Inc.(b)(c)

    182,109       7,266,149  

Incyte Corp.(b)

    160,589       12,037,751  

Ironwood Pharmaceuticals, Inc.(b)(c)

    549,327       6,591,924  

Myriad Genetics, Inc.(b)

    232,705       4,770,453  

Neurocrine Biosciences, Inc.(b)

    68,087       6,129,873  

Prothena Corp. PLC (Ireland)(b)(c)

    174,845       5,098,480  

Regeneron Pharmaceuticals, Inc.(b)

    18,160       11,969,438  

United Therapeutics Corp.(b)

    30,837       5,475,418  

Vericel Corp.(b)(c)

    179,423       5,113,555  

Vertex Pharmaceuticals, Inc.(b)

    47,545       12,990,245  

Xencor, Inc.(b)

    186,137       4,649,702  

Xenon Pharmaceuticals, Inc.
(Canada)(b)

    193,362       5,466,344  
   

 

 

 
      166,473,083  
   

 

 

 

Health Care Services-5.09%

 

Fulgent Genetics, Inc.(b)(c)

    95,912       5,263,651  

OPKO Health, Inc.(b)(c)

    1,977,232       5,338,526  
   

 

 

 
      10,602,177  
   

 

 

 

Life Sciences Tools & Services-10.12%

 

Bio-Techne Corp.

    27,360       10,388,318  

QIAGEN N.V.(b)

    121,367       5,506,421  

Repligen Corp.(b)(c)

    32,905       5,173,982  
   

 

 

 
      21,068,721  
   

 

 

 
          Shares           Value  

Pharmaceuticals-4.87%

   

Catalent, Inc.(b)

    111,874     $ 10,131,309  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $230,189,309)

 

    208,275,290  
   

 

 

 

Money Market Funds-0.07%

   

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $138,087)

    138,087       138,087  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.11%
(Cost $230,327,396)

 

    208,413,377  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

 

Money Market Funds-25.90%

 

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

    16,183,722       16,183,722  

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

    37,737,721       37,737,721  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $53,920,110)

 

    53,921,443  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-126.01%
(Cost $284,247,506)

 

    262,334,820  

OTHER ASSETS LESS LIABILITIES-(26.01)%

 

    (54,144,086
   

 

 

 

NET ASSETS-100.00%

    $ 208,190,734  
   

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

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

 

     Value
April 30, 2021
            Purchases
at Cost
            Proceeds
from Sales
            Change in
Unrealized
Appreciation
            Realized
Gain
(Loss)
            Value
April 30, 2022
            Dividend
Income
 

Investments in Affiliated Money Market Funds:

                                

Invesco Government & Agency Portfolio, Institutional Class

   $ 97,394        $  7,656,102        $ (7,615,409)          $      -            $      -            $  138,087        $ 100  

 

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

   
   

 

  27   

   
 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE)–(continued)

April 30, 2022

 

 

    

Value
April 30, 2021

          Purchases
at Cost
          Proceeds
from Sales
         

Change in
Unrealized
Appreciation

          Realized
Gain
(Loss)
         

Value
April 30, 2022

         

Dividend
Income

Investments Purchased with Cash Collateral from Securities on Loan:

                                                          

Invesco Private Government Fund

     $ 17,075,160          $ 148,913,331          $ (149,804,769 )          $ -            $ -            $ 16,183,722          $ 9,976 *

Invesco Private Prime Fund

       25,612,740            302,492,105            (290,356,162 )            1,333              (12,295 )            37,737,721            46,332 *
    

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

 

Total

     $ 42,785,294          $ 459,061,538          $ (447,776,340 )          $ 1,333          $ (12,295 )          $ 54,059,530          $ 56,408
    

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

 

 

*

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

 

(e) 

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

(f) 

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

 

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

   
   

 

  28   

   
 


 

Invesco Dynamic Building & Construction ETF (PKB)

April 30, 2022

 

Schedule of Investments(a)

 

          Shares           Value  

Common Stocks & Other Equity Interests-99.97%

 

Building Products-11.53%

   

A.O. Smith Corp.

    63,812     $ 3,728,535  

Carlisle Cos., Inc.

    19,048       4,940,289  

Owens Corning

    47,405       4,310,537  

Simpson Manufacturing Co., Inc.

    38,623       4,004,046  
   

 

 

 
        16,983,407  
   

 

 

 

Construction & Engineering-2.96%

 

AECOM

    61,895       4,367,311  
   

 

 

 

Construction Materials-15.48%

 

Eagle Materials, Inc.

    32,593       4,019,369  

Martin Marietta Materials, Inc.

    21,407       7,582,788  

Summit Materials, Inc., Class A(b)(c)

    127,773       3,552,089  

Vulcan Materials Co.

    44,388       7,647,608  
   

 

 

 
      22,801,854  
   

 

 

 

Environmental & Facilities Services-2.83%

 

Tetra Tech, Inc.

    29,994       4,177,564  
   

 

 

 

Forest Products-2.86%

 

Louisiana-Pacific Corp.

    65,232       4,208,769  
   

 

 

 

Gas Utilities-4.04%

   

Southwest Gas Holdings, Inc.

    67,532       5,950,245  
   

 

 

 

Home Improvement Retail-10.34%

 

Home Depot, Inc. (The)

    25,743       7,733,197  

Lowe’s Cos., Inc.

    37,917       7,497,329  
   

 

 

 
      15,230,526  
   

 

 

 

Homebuilding-44.38%

 

Cavco Industries, Inc.(b)(c)

    16,269       3,843,551  

Century Communities, Inc.

    73,989       3,900,700  

D.R. Horton, Inc.

    101,146       7,038,750  

KB Home

    122,115       3,960,189  

Lennar Corp., Class A

    94,483       7,227,005  

M.D.C. Holdings, Inc.

    106,758       3,940,438  

M/I Homes, Inc.(b)

    95,425       4,225,419  

Meritage Homes Corp.(b)

    49,223       4,063,359  

NVR, Inc.(b)

    1,686       7,378,290  
           Shares            Value  

Homebuilding-(continued)

     

PulteGroup, Inc.

     95,945      $ 4,006,663  

Skyline Champion Corp.(b)

     64,843        3,309,587  

Taylor Morrison Home Corp., Class A(b)

     160,087        4,192,678  

Toll Brothers, Inc.

     84,891        3,936,396  

Tri Pointe Homes, Inc.(b)

     211,230        4,366,124  
     

 

 

 
        65,389,149  
     

 

 

 

Specialty Stores-5.55%

 

  

Tractor Supply Co.

     40,582        8,175,244  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $161,980,631)

 

     147,284,069  
     

 

 

 

Money Market Funds-0.10%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e) (Cost $142,552)

     142,552        142,552  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.07%
(Cost $162,123,183)

 

     147,426,621  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-1.89%

 

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

     834,839        834,839  

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

     1,948,889        1,948,889  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $2,783,728)

 

     2,783,728  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-101.96%
(Cost $164,906,911)

 

     150,210,349  

OTHER ASSETS LESS LIABILITIES-(1.96)%

 

     (2,888,525
     

 

 

 

NET ASSETS-100.00%

      $ 147,321,824  
     

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

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

 

    

Value

April 30, 2021

         Purchases
at Cost
          Proceeds
from Sales
         

Change in
Unrealized
Appreciation

          Realized
Gain
         

Value
April 30, 2022

         

Dividend
Income

Investments in Affiliated Money Market Funds:

                                                         

Invesco Government & Agency Portfolio, Institutional Class

     $ 161,244         $    8,341,974          $      (8,360,666)            $-              $     -            $   142,552          $    202

 

 

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

   
   

 

  29   

   
 


 

Invesco Dynamic Building & Construction ETF (PKB)–(continued)

April 30, 2022

 

 

    

Value
April 30, 2021

        

Purchases
at Cost

          Proceeds
from Sales
 

    

 

Change in
Unrealized
Appreciation

          Realized
Gain
         

Value
April 30, 2022

         

Dividend
Income

Investments Purchased with Cash Collateral from Securities on Loan:

                                                      

Invesco Private Government Fund

     $ 76,577       $ 58,820,726          $ (58,062,464 )           $-            $ -          $ 834,839          $ 2,682 *

Invesco Private Prime Fund

       112,671       128,153,857            (126,318,040 )           -              401            1,948,889            10,803 *
    

 

 

       

 

        

 

 

         

 

 

          

 

 

          

 

 

          

 

 

 

Total

     $ 350,492       $195,316,557          $ (192,741,170 )           $-            $ 401          $ 2,926,280          $ 13,687
    

 

 

       

 

        

 

 

         

 

 

          

 

 

          

 

 

          

 

 

 

 

*

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

 

(e) 

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

(f) 

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

 

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

   
   

 

  30   

   
 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE)

April 30, 2022

 

Schedule of Investments(a)

 

          Shares           Value  

Common Stocks & Other Equity Interests-99.93%

 

Gas Utilities-2.61%

   

National Fuel Gas Co.

    98,296     $ 6,893,498  
   

 

 

 

Integrated Oil & Gas-5.80%

 

Occidental Petroleum Corp.

    278,284       15,330,666  
   

 

 

 

Oil & Gas Exploration & Production-71.45%

 

 

Antero Resources Corp.(b)

    285,572       10,052,134  

APA Corp.

    187,376       7,669,300  

Centennial Resource Development, Inc., Class A(b)(c)

    755,447       5,847,160  

Comstock Resources, Inc.(b)(c)

    786,055       13,386,517  

ConocoPhillips

    121,797       11,634,049  

Continental Resources, Inc.(c)

    113,118       6,285,967  

Coterra Energy, Inc.

    257,859       7,423,761  

Devon Energy Corp.

    202,456       11,776,866  

Diamondback Energy, Inc.

    45,440       5,735,891  

EOG Resources, Inc.

    98,159       11,461,045  

Hess Corp.

    61,956       6,385,805  

HighPeak Energy, Inc.(c)

    293,339       8,011,088  

Kosmos Energy Ltd. (Ghana)(b)

    1,394,942       9,429,808  

Magnolia Oil & Gas Corp., Class A(c)

    288,404       6,702,509  

Marathon Oil Corp.

    269,316       6,711,355  

Matador Resources Co.

    134,361       6,559,504  

Murphy Oil Corp.(c)

    180,416       6,870,241  

Oasis Petroleum, Inc.

    48,484       6,431,887  

PDC Energy, Inc.

    109,809       7,658,080  

Pioneer Natural Resources Co.(c)

    48,430       11,258,522  

Range Resources Corp.(b)

    291,144       8,716,851  

SM Energy Co.

    171,746       6,102,135  

Whiting Petroleum Corp.

    91,398       6,676,624  
   

 

 

 
      188,787,099  
   

 

 

 

Oil & Gas Refining & Marketing-20.07%

 

 

HF Sinclair Corp.

    168,904       6,421,730  

Marathon Petroleum Corp.

    141,027       12,306,016  
          Shares           Value  

Oil & Gas Refining & Marketing-(continued)

 

 

PBF Energy, Inc., Class A(b)

    324,947     $ 9,442,960  

Phillips 66

    126,824       11,003,250  

Valero Energy Corp.

    124,241       13,850,387  
   

 

 

 
      53,024,343  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $197,192,428)

 

    264,035,606  
   

 

 

 

Money Market Funds-0.13%

 

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $340,711)

    340,711       340,711  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.06%
(Cost $197,533,139)

 

    264,376,317  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

 

Money Market Funds-14.52%

 

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

    11,513,827       11,513,827  

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

    26,845,754       26,845,754  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $38,357,077)

 

    38,359,581  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-114.58%
(Cost $235,890,216)

 

    302,735,898  

OTHER ASSETS LESS LIABILITIES-(14.58)%

 

    (38,519,671
   

 

 

 

NET ASSETS-100.00%

    $ 264,216,227  
   

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

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

 

    

Value
April 30, 2021

          Purchases
at Cost
          Proceeds
from Sales
         

Change in
Unrealized
Appreciation

          Realized
Gain
(Loss)
         

Value
April 30, 2022

         

Dividend
Income

Investments in Affiliated Money Market Funds:

                                                          

Invesco Government & Agency Portfolio, Institutional Class

     $     126,666          $     5,280,988          $     (5,066,943 )            $        -              $        -            $     340,711          $ 167

 

 

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

   
   

 

  31   

   
 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE)–(continued)

April 30, 2022

 

 

    

Value
April 30, 2021

        

Purchases
at Cost

          Proceeds
from Sales
        

Change in
Unrealized
Appreciation

          Realized
Gain
(Loss)
        

Value
April 30, 2022

         

Dividend
Income

Investments Purchased with Cash Collateral from Securities on Loan:

                                                     

Invesco Private Government Fund

     $ 1,611,585       $ 64,743,600          $ (54,841,358 )         $ -          $ -         $ 11,513,827          $ 7,065 *

Invesco Private Prime Fund

       2,587,028       145,387,606            (121,123,337 )           2,504            (8,047 )           26,845,754            21,163 *
    

 

 

       

 

        

 

 

         

 

 

          

 

 

         

 

 

          

 

 

 

Total

     $ 4,325,279       $215,412,194          $ (181,031,638 )         $ 2,504          $ (8,047 )         $ 38,700,292          $ 28,395
    

 

 

       

 

        

 

 

         

 

 

          

 

 

         

 

 

          

 

 

 

 

*

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

 

(e) 

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

(f) 

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

 

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

   
   

 

  32   

   
 


 

Invesco Dynamic Food & Beverage ETF (PBJ)

April 30, 2022

 

Schedule of Investments(a)

           Shares            Value  

Common Stocks & Other Equity Interests-99.91%

 

Agricultural Products-8.48%

     

Archer-Daniels-Midland Co.

     186,933      $ 16,741,720  

Bunge Ltd.

     79,019        8,938,629  
     

 

 

 
        25,680,349  
     

 

 

 

Distillers & Vintners-5.37%

     

Constellation Brands, Inc., Class A

     66,143        16,277,131  
     

 

 

 

Food Distributors-6.16%

     

Andersons, Inc. (The)

     196,466        9,868,487  

United Natural Foods, Inc.(b)(c)

     204,602        8,783,564  
     

 

 

 
        18,652,051  
     

 

 

 

Food Retail-15.00%

     

Albertsons Cos., Inc., Class A(c)

     276,490        8,648,607  

Ingles Markets, Inc., Class A

     95,466        8,889,794  

Kroger Co. (The)

     173,779        9,377,115  

Sprouts Farmers Market, Inc.(b)

     274,661        8,184,898  

Weis Markets, Inc.(c)

     129,248        10,324,330  
     

 

 

 
        45,424,744  
     

 

 

 

Packaged Foods & Meats-44.34%

     

Cal-Maine Foods, Inc.(c)

     181,120        9,731,578  

Dole PLC(c)

     522,494        6,222,904  

Flowers Foods, Inc.

     275,270        7,300,160  

General Mills, Inc.

     212,925        15,060,185  

Hershey Co. (The)

     70,885        16,003,706  

Hostess Brands, Inc.(b)(c)

     369,202        8,377,193  

JM Smucker Co. (The)

     56,438        7,728,055  

Kellogg Co.

     118,228        8,098,618  

McCormick & Co., Inc.(c)

     80,589        8,104,836  

Mondelez International, Inc., Class A

     215,634        13,904,080  

Pilgrim’s Pride Corp.(b)

     325,128        9,217,379  

Sanderson Farms, Inc.

     43,600        8,256,532  

Tootsie Roll Industries, Inc.(c)

     239,664        8,395,430  

Tyson Foods, Inc., Class A

     84,518        7,873,697  
     

 

 

 
        134,274,353  
     

 

 

 

Personal Products-1.65%

     

Herbalife Nutrition Ltd.(b)(c)

     188,133        5,000,575  
     

 

 

 
          Shares           Value  

Restaurants-2.61%

   

Arcos Dorados Holdings, Inc., Class A (Brazil)

    1,090,968     $ 7,909,518  
   

 

 

 

Soft Drinks-16.30%

   

Coca-Cola Co. (The)

    230,317       14,880,782  

Coca-Cola Consolidated, Inc.

    13,494       5,957,601  

Keurig Dr Pepper, Inc.

    371,838       13,906,741  

PepsiCo, Inc.

    85,117       14,615,440  
   

 

 

 
      49,360,564  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $286,752,231)

 

    302,579,285  
   

 

 

 
Money Market Funds-0.12%

 

 

Invesco Government & Agency Portfolio, Institutional Class, 0.35%(d)(e)
(Cost $364,851)

    364,851       364,851  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.03%
(Cost $287,117,082)

 

    302,944,136  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

 
Money Market Funds-12.82%

 

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

    11,654,821       11,654,821  

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

    27,185,071       27,185,071  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $38,839,892)

 

    38,839,892  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-112.85%
(Cost $325,956,974)

 

    341,784,028  

OTHER ASSETS LESS LIABILITIES-(12.85)%

 

    (38,931,290
   

 

 

 

NET ASSETS-100.00%

 

  $ 302,852,738  
   

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

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

 

    

Value
April 30, 2021

          Purchases
at Cost
          Proceeds
from Sales
         

Change in
Unrealized
Appreciation

          Realized
Gain
(Loss)
         

Value
April 30, 2022

         

Dividend
Income

Investments in Affiliated Money Market Funds:

                                                          

Invesco Government & Agency Portfolio, Institutional Class

     $   178,307          $   3,721,538          $   (3,534,994)              $-            $       -          $     364,851          $     130

 

 

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

   
   

 

  33   

   
 


 

Invesco Dynamic Food & Beverage ETF (PBJ)–(continued)

April 30, 2022

 

 

     Value
April 30, 2021
          Purchases
at Cost
          Proceeds
from Sales
          Change in
Unrealized
Appreciation
          Realized
Gain
(Loss)
          Value
April 30, 2022
          Dividend
Income

Investments Purchased with Cash Collateral from Securities on Loan:

                                                          

Invesco Private Government Fund

     $ 3,583,338          $ 58,062,545          $ (49,991,062 )          $ -          $ -          $ 11,654,821          $ 3,713 *

Invesco Private Prime Fund

       5,375,007            127,000,412            (105,186,814 )            -            (3,534 )            27,185,071            12,786 *
    

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

 

Total

     $ 9,136,652          $ 188,784,495          $ (158,712,870 )          $ -          $ (3,534 )          $ 39,204,743          $ 16,629
    

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

          

 

 

 

 

* 

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

(e) 

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

(f) 

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

 

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

   
   

 

  34   

   
 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

April 30, 2022

 

Schedule of Investments(a)

 

          Shares           Value  

Common Stocks & Other Equity Interests-100.10%

 

Broadcasting-10.38%

   

AMC Networks, Inc., Class A(b)(c)

    1,069,163     $ 34,886,789  

Fox Corp., Class A

    1,762,077       63,152,840  

Paramount Global, Class B

    1,442,544       42,006,881  
   

 

 

 
      140,046,510  
   

 

 

 

Casinos & Gaming-15.67%

 

Boyd Gaming Corp.(c)

    601,169       36,418,818  

Everi Holdings, Inc.(b)(c)

    1,806,607       31,362,698  

International Game Technology PLC(c) 

    1,430,482       31,227,422  

MGM Resorts International

    931,512       38,229,252  

Monarch Casino & Resort, Inc.(b)(c)

    548,276       38,461,561  

Red Rock Resorts, Inc., Class A

    814,102       35,787,924  
   

 

 

 
      211,487,675  
   

 

 

 

Food Distributors-5.54%

   

Sysco Corp.

    874,685       74,768,074  
   

 

 

 

Hotels, Resorts & Cruise Lines-21.06%

 

Booking Holdings, Inc.(b)

    29,186       64,510,107  

Choice Hotels International,
Inc.(c)

    280,989       39,467,715  

Expedia Group, Inc.(b)

    359,877       62,888,506  

Marriott International, Inc., Class A(b) 

    425,731       75,575,767  

Wyndham Hotels & Resorts, Inc.(c) 

    475,050       41,785,398  
   

 

 

 
         284,227,493  
   

 

 

 

Interactive Media & Services-2.24%

 

Eventbrite, Inc., Class A(b)(c)

    2,851,289       30,166,638  
   

 

 

 

Leisure Facilities-5.74%

 

 

Cedar Fair L.P.(b)

    704,116       37,627,959  

SeaWorld Entertainment, Inc.(b)

    590,877       39,848,745  
   

 

 

 
      77,476,704  
   

 

 

 

Movies & Entertainment-31.07%

 

AMC Entertainment Holdings, Inc.,
Class A(b)(c)

    2,438,871       37,314,726  

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

    711,154       40,834,463  

Lions Gate Entertainment Corp., Class A(b) .

    3,057,351       41,243,665  

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

    629,604       66,032,867  
          Shares           Value  

Movies &  Entertainment-(continued)

 

 

Madison Square Garden Sports Corp., Class A(b)

    230,703     $ 37,399,263  

Manchester United PLC, Class A (United Kingdom)(c)(d)

    3,039,045       41,148,669  

Walt Disney Co. (The)(b)

    497,690       55,557,135  

Warner Bros Discovery, Inc.(b)

    1,432,213       25,994,666  

Warner Music Group Corp., Class A

    1,115,771       33,216,503  

World Wrestling Entertainment, Inc., Class A(c)

    695,181       40,591,619  
   

 

 

 
      419,333,576  
   

 

 

 

Restaurants-8.40%

   

Arcos Dorados Holdings, Inc., Class A (Brazil)(c)

    5,602,305       40,616,711  

McDonald’s Corp.(c)

    291,686       72,676,484  
   

 

 

 
      113,293,195  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.10%
(Cost $1,487,027,117)

 

    1,350,799,865  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

 
Money Market Funds-8.35%

 

 

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

    33,799,807       33,799,807  

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

    78,835,195       78,835,195  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $112,633,820)

 

    112,635,002  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-108.45%
(Cost $1,599,660,937)

 

    1,463,434,867  

OTHER ASSETS LESS LIABILITIES-(8.45)%

 

    (114,013,151
   

 

 

 

NET ASSETS-100.00%

 

  $ 1,349,421,716  
   

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

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

(d) 

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2022.

 

     Value
April 30, 2021
       Purchases  
at Cost
     Proceeds
    from Sales    
     Change in
Unrealized
Appreciation
(Depreciation)
       Realized  
Gain
(Loss)
     Value
April 30, 2022
     Dividend
Income
 

Investments in Affiliated Money Market Funds:

                    

Invesco Government & Agency Portfolio, Institutional Class

     $ 480,462      $   243,540,322      $ (244,020,784)       $ -      $ -       $ -        $ 639  

 

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

   
   

 

  35   

   
 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ)–(continued)

April 30, 2022

 

 

     Value
April 30, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2022
   Dividend
Income

Investments Purchased with Cash Collateral from

                               

Securities on Loan: Invesco Private Government Fund

     $ 168,230,291      $ 501,932,232      $ (636,362,716 )     $ -     $ -     $ 33,799,807        $ 31,743 *

Invesco Private Prime Fund

       254,337,814        990,204,200        (1,165,683,833 )       1,180       (24,166 )       78,835,195        160,244 *

Investments in Other Affiliates:

                               

Manchester United PLC, Class A

       50,018,741        68,883,030        (72,248,127 )       (4,724,422 )       (780,553 )       41,148,669        -
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

Total

     $ 473,067,308      $ 1,804,559,784      $ (2,118,315,460 )     $ (4,723,242 )     $ (804,719 )     $ 153,783,671      $ 192,626
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

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

(f) 

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

 

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

   
   

 

  36   

   
 


 

Invesco Dynamic Media ETF (PBS)

April 30, 2022

 

Schedule of Investments(a)

 

           Shares            Value  

Common Stocks & Other Equity Interests-100.05%

 

Advertising-10.90%

     

Clear Channel Outdoor Holdings, Inc.(b)

     332,516        $ 817,989  

Interpublic Group of Cos., Inc. (The)

     34,080        1,111,690  

Omnicom Group, Inc.(c)

     14,750        1,122,918  

TechTarget, Inc.(b)(c)

     16,901        1,137,606  
     

 

 

 
        4,190,203  
     

 

 

 

Broadcasting-20.36%

     

Fox Corp., Class A

     29,660        1,063,014  

Gray Television, Inc.

     60,379        1,118,219  

iHeartMedia, Inc., Class A(b)

     62,232        995,090  

Nexstar Media Group, Inc., Class A

     7,018        1,111,792  

Paramount Global, Class B

     44,532        1,296,772  

Sinclair Broadcast Group, Inc., Class A

     46,138        1,026,109