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Invesco Semi-Annual Report to Shareholders

 

February 28, 2023

    

 

  QQMG   Invesco ESG NASDAQ 100 ETF
  QQJG   Invesco ESG NASDAQ Next Gen 100 ETF
  QQQM   Invesco NASDAQ 100 ETF
  QQQS   Invesco NASDAQ Future Gen 200 ETF
  QQQJ   Invesco NASDAQ Next Gen 100 ETF


 

 

Table of Contents

 

Schedules of Investments

  

Invesco ESG NASDAQ 100 ETF (QQMG)

     3  

Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)

     6  

Invesco NASDAQ 100 ETF (QQQM)

     9  

Invesco NASDAQ Future Gen 200 ETF (QQQS)

     12  

Invesco NASDAQ Next Gen 100 ETF (QQQJ)

     15  

Statements of Assets and Liabilities

     18  

Statements of Operations

     19  

Statements of Changes in Net Assets

     20  

Financial Highlights

     22  

Notes to Financial Statements

     27  

Fund Expenses

     37  

Approval of Investment Advisory Contracts

     39  

 

    2    

 

 

 

 


 

Invesco ESG NASDAQ 100 ETF (QQMG)

February 28, 2023

(Unaudited)

Schedule of Investments(a)

 

        Shares      Value  

Common Stocks & Other Equity Interests-99.91%

 

Communication Services-12.68%

 

Activision Blizzard, Inc.

     884      $ 67,405  

Alphabet, Inc., Class A(b)

     3,288       296,117  

Alphabet, Inc., Class C(b)

     3,287       296,816  

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

     116       42,644  

Comcast Corp., Class A

     3,099       115,190  

Electronic Arts, Inc.

     386       42,823  

Meta Platforms, Inc., Class A(b)

     579       101,290  

Netflix, Inc.(b)

     500       161,065  

Sirius XM Holdings, Inc.(c)

     4,281       18,793  

T-Mobile US, Inc.(b)

     832       118,294  
    

 

 

 
       1,260,437  
    

 

 

 

Consumer Discretionary-11.76%

    

Airbnb, Inc., Class A(b)

     314       38,710  

Amazon.com, Inc.(b)

     3,440       324,151  

Booking Holdings, Inc.(b)

     32       80,768  

Dollar Tree, Inc.(b)

     260       37,773  

eBay, Inc.

     584       26,806  

JD.com, Inc., ADR (China)

     281       12,488  

Lucid Group, Inc.(b)(c)

     1,505       13,741  

lululemon athletica, inc.(b)

     138       42,669  

Marriott International, Inc., Class A

     273       46,202  

MercadoLibre, Inc. (Brazil)(b)

     43       52,460  

O’Reilly Automotive, Inc.(b)

     82       68,068  

PDD Holdings Inc., ADR (China)(b)

     239       20,967  

Rivian Automotive, Inc., Class A(b)(c)

     490       9,457  

Ross Stores, Inc.

     394       43,553  

Starbucks Corp.

     813       82,999  

Tesla, Inc.(b)

     1,304       268,246  
    

 

 

 
       1,169,058  
    

 

 

 

Consumer Staples-6.17%

    

Costco Wholesale Corp.

     330       159,780  

Keurig Dr Pepper, Inc.

     1,138       39,318  

Kraft Heinz Co. (The)

     279       10,864  

Mondelez International, Inc., Class A

     1,141       74,370  

Monster Beverage Corp.(b)

     262       26,661  

PepsiCo, Inc.

     1,541       267,410  

Walgreens Boots Alliance, Inc.

     968       34,393  
    

 

 

 
       612,796  
    

 

 

 

Health Care-6.48%

    

Align Technology, Inc.(b)

     76       23,522  

Amgen, Inc.

     457       105,869  

AstraZeneca PLC, ADR (United Kingdom)

     512       33,372  

Biogen, Inc.(b)

     124       33,463  

DexCom, Inc.(b)

     297       32,970  

Gilead Sciences, Inc.

     1,014       81,658  

IDEXX Laboratories, Inc.(b)

     80       37,859  

Illumina, Inc.(b)

     216       43,027  

Intuitive Surgical, Inc.(b)

     271       62,165  

Moderna, Inc.(b)

     184       25,541  

Regeneron Pharmaceuticals, Inc.(b)

     110       83,646  

Seagen, Inc.(b)

     113       20,305  

Vertex Pharmaceuticals, Inc.(b)

     208       60,380  
    

 

 

 
       643,777  
    

 

 

 
        Shares      Value  

Industrials-2.65%

    

Cintas Corp.

     101      $ 44,285  

Copart, Inc.(b)

     491       34,596  

CoStar Group, Inc.(b)

     250       17,665  

CSX Corp.

     1,974       60,187  

Fastenal Co.(c)

     367       18,923  

Old Dominion Freight Line, Inc.

     118       40,033  

PACCAR, Inc.

     301       21,732  

Verisk Analytics, Inc.

     153       26,180  
    

 

 

 
       263,601  
    

 

 

 

Information Technology-60.17%

    

Adobe, Inc.(b)

     600       194,370  

Advanced Micro Devices, Inc.(b)

     1,516       119,127  

ANSYS, Inc.(b)

     111       33,701  

Apple, Inc.

     9,052       1,334,355  

Applied Materials, Inc.

     1,154       134,037  

ASML Holding N.V., New York Shares (Netherlands)

     121       74,745  

Atlassian Corp., Class A(b)

     156       25,636  

Autodesk, Inc.(b)

     244       48,480  

Automatic Data Processing, Inc.

     508       111,669  

Broadcom, Inc.

     332       197,304  

Cadence Design Systems, Inc.(b)

     360       69,458  

Cisco Systems, Inc.

     5,282       255,754  

Cognizant Technology Solutions Corp., Class A

     619       38,768  

Crowdstrike Holdings, Inc., Class A(b)

     178       21,483  

Datadog, Inc., Class A(b)

     256       19,589  

Enphase Energy, Inc.(b)

     69       14,527  

Fiserv, Inc.(b)

     638       73,427  

Fortinet, Inc.(b)

     770       45,769  

Intel Corp.

     4,424       110,290  

Intuit, Inc.

     315       128,262  

KLA Corp.

     154       58,425  

Lam Research Corp.

     170       82,622  

Marvell Technology, Inc.

     918       41,448  

Microchip Technology, Inc.

     234       18,961  

Micron Technology, Inc.

     1,161       67,129  

Microsoft Corp.

     5,252       1,309,954  

NVIDIA Corp.

     2,884       669,549  

NXP Semiconductors N.V. (China)

     225       40,158  

Palo Alto Networks, Inc.(b)(c)

     368       69,320  

Paychex, Inc.

     381       42,062  

PayPal Holdings, Inc.(b)

     1,256       92,442  

QUALCOMM, Inc.

     1,237       152,807  

Synopsys, Inc.(b)

     191       69,478  

Texas Instruments, Inc.

     784       134,417  

Workday, Inc., Class A(b)

     256       47,480  

Zoom Video Communications, Inc.,
Class A(b)(c)

     242       18,051  

Zscaler, Inc.(b)(c)

     127       16,655  
    

 

 

 
       5,981,709  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $12,077,806)

 

    9,931,378  
    

 

 

 

 

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

 

    3    

 

 

 

 


 

Invesco ESG NASDAQ 100 ETF (QQMG)–(continued)

February 28, 2023

(Unaudited)

    

 

        Shares       Value  

Money Market Funds-0.02%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)
(Cost $2,172)

     2,172      $ 2,172  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.93%
(Cost $12,079,978)

 

     9,933,550  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-2.09%

 

Invesco Private Government Fund,
4.58%(d)(e)(f)

     58,303        58,303  
        Shares       Value  

Money Market Funds-(continued)

 

Invesco Private Prime Fund, 4.83%(d)(e)(f)

     149,891      $ 149,921  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $208,224)

 

     208,224  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-102.02%
(Cost $12,288,202)

 

     10,141,774  

OTHER ASSETS LESS LIABILITIES-(2.02)%

 

     (201,076
     

 

 

 

NET ASSETS-100.00%

      $ 9,940,698  
     

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

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 February 28, 2023.

(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 six months ended February 28, 2023.

 

    Value
August 31, 2022
  Purchases
at Cost
  Proceeds
from  Sales
  Change in
Unrealized
Appreciation
      Realized
Gain

(Loss)
      Value
February 28, 2023
  Dividend
Income

Investments in Affiliated Money Market Funds:

                                                         

Invesco Government & Agency Portfolio, Institutional Class

      $ -           $ 65,268         $ (63,096 )         $ -         $ -         $ 2,172         $ 88         

Investments Purchased with Cash Collateral from Securities on Loan:

                                                                   

Invesco Private Government Fund

        20,569           251,730           (213,996 )           -           -           58,303           368 *    

Invesco Private Prime Fund

        52,891           444,670           (347,637 )           -           (3 )           149,921                968 *    
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

         

 

 

         

 

 

     

Total

      $ 73,460         $ 761,668         $ (624,729 )         $ -         $ (3 )         $ 210,396         $ 1,424    
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

         

 

 

         

 

 

     

 

*

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 February 28, 2023.

(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.

 

    4    

 

 

 

 


 

Invesco ESG NASDAQ 100 ETF (QQMG)–(continued)

February 28, 2023

(Unaudited)

    

 

Portfolio Composition

Sector Breakdown (% of the Fund’s Net Assets)

as of February 28, 2023

Information Technology

     60.17     

Communication Services

     12.68     

Consumer Discretionary

     11.76     

Health Care

     6.48     

Consumer Staples

     6.17     

Industrials

     2.65     

Money Market Funds Plus Other Assets Less Liabilities

     0.09     

 

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

 

    5    

 

 

 

 


 

Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)

February 28, 2023

(Unaudited)

Schedule of Investments(a)

 

        Shares      Value  

Common Stocks & Other Equity Interests-99.88%

 

Communication Services-12.34%

 

Fox Corp., Class A

     1,100      $ 38,522  

Fox Corp., Class B

     874       28,186  

Liberty Broadband Corp., Class A(b)(c)

     45       3,903  

Liberty Broadband Corp., Class C(b)

     304       26,348  

Liberty Global PLC, Class A (United Kingdom)(b)

     381       7,807  

Liberty Global PLC, Class C (United Kingdom)(b)(c)

     609       12,941  

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

     631       42,826  

Match Group, Inc.(b)

     780       32,308  

News Corp., Class A

     1,479       25,365  

News Corp., Class B

     748       12,910  

Paramount Global, Class B(c)

     2,024       43,354  

Take-Two Interactive Software, Inc.(b)

     584       63,977  

Trade Desk, Inc. (The), Class A(b)

     868       48,573  

ZoomInfo Technologies, Inc., Class A(b)

     952       23,010  
    

 

 

 
          410,030  
    

 

 

 

Consumer Discretionary-13.59%

    

Etsy, Inc.(b)

     299       36,302  

Expedia Group, Inc.(b)

     286       31,166  

Five Below, Inc.(b)(c)

     161       32,892  

Hasbro, Inc.

     608       33,446  

LKQ Corp.

     972       55,686  

Pool Corp.

     142       50,674  

Tractor Supply Co.

     386       90,038  

Trip.com Group Ltd., ADR (China)(b)(c)

     941       33,453  

Ulta Beauty, Inc.(b)

     169       87,677  
    

 

 

 
       451,334  
    

 

 

 

Consumer Staples-2.63%

    

Coca-Cola Europacific Partners PLC (United Kingdom)(c)

     1,587       87,285  
    

 

 

 

Health Care-18.27%

    

Acadia Healthcare Co., Inc.(b)

     140       10,151  

Alnylam Pharmaceuticals, Inc.(b)

     171       32,738  

Argenx SE, ADR (Netherlands)(b)

     30       10,981  

BeiGene Ltd., ADR (China)(b)(c)

     84       18,869  

BioMarin Pharmaceutical, Inc.(b)

     348       34,657  

Bio-Techne Corp.

     465       33,778  

Bruker Corp.

     381       26,258  

Henry Schein, Inc.(b)

     483       37,824  

Hologic, Inc.(b)

     378       30,104  

Horizon Therapeutics PLC(b)

     139       15,219  

ICON PLC(b)

     317       71,525  

Incyte Corp.(b)

     484       37,258  

Insulet Corp.(b)

     134       37,032  

Jazz Pharmaceuticals PLC(b)

     114       16,006  

Karuna Therapeutics, Inc.(b)(c)

     37       7,378  

Neurocrine Biosciences, Inc.(b)

     196       20,208  

Novocure Ltd.(b)(c)

     93       7,158  

R1 RCM, Inc.(b)

     901       12,794  

Repligen Corp.(b)

     180       31,387  

Royalty Pharma PLC, Class A

     642       23,016  

Sanofi, ADR

     716       33,545  

Sarepta Therapeutics, Inc.(b)

     84       10,259  

Shockwave Medical, Inc.(b)

     50       9,512  
        Shares      Value  

Health Care-(continued)

    

United Therapeutics Corp.(b)

     86     $ 21,159  

Viatris, Inc.

     1,566        17,852  
    

 

 

 
       606,668  
    

 

 

 

Industrials-9.67%

    

American Airlines Group, Inc.(b)

     953       15,229  

Avis Budget Group, Inc.(b)

     111       24,382  

C.H. Robinson Worldwide, Inc.

     315       31,488  

Expeditors International of Washington, Inc.

     516       53,953  

Grab Holdings Ltd., Class A (Singapore)(b)(c)

     8,309       26,672  

J.B. Hunt Transport Services, Inc.

     363       65,627  

Lincoln Electric Holdings, Inc.

     140       23,510  

Middleby Corp. (The)(b)

     65       10,107  

Nordson Corp.

     103       22,623  

Tetra Tech, Inc.

     160       21,902  

United Airlines Holdings, Inc.(b)

     495       25,720  
    

 

 

 
       321,213  
    

 

 

 

Information Technology-42.70%

    

Akamai Technologies, Inc.(b)

     496       36,010  

Amdocs Ltd.

     449       41,133  

Bentley Systems, Inc., Class B

     889       35,969  

CDW Corp.

     559       113,153  

Check Point Software Technologies Ltd. (Israel)(b)

     285       35,260  

Cognex Corp.

     639       30,301  

DocuSign, Inc.(b)

     572       35,092  

Entegris, Inc.

     345       29,404  

F5, Inc.(b)

     168       24,021  

First Solar, Inc.

     307       51,926  

Flex Ltd.(b)

     2,063       46,954  

Gen Digital, Inc.

     2,183       42,590  

Jack Henry & Associates, Inc.

     240       39,418  

Logitech International S.A., Class R (Switzerland)

     602       32,839  

Manhattan Associates, Inc.(b)

     185       26,594  

MongoDB, Inc.(b)

     174       36,456  

Monolithic Power Systems, Inc.

     121       58,599  

NetApp, Inc.

     713       46,024  

Okta, Inc.(b)

     454       32,366  

ON Semiconductor Corp.(b)

     777       60,148  

Open Text Corp. (Canada)

     834       28,673  

Paylocity Holding Corp.(b)

     138       26,580  

PTC, Inc.(b)

     332       41,609  

Qorvo, Inc.(b)

     149       15,033  

Seagate Technology Holdings PLC

     731       47,193  

Skyworks Solutions, Inc.

     255       28,450  

SolarEdge Technologies, Inc.(b)

     115       36,561  

Splunk, Inc.(b)

     482       49,405  

SS&C Technologies Holdings, Inc.

     607       35,631  

Teradyne, Inc.

     504       50,974  

Trimble, Inc.(b)

     896       46,646  

VeriSign, Inc.(b)

     264       51,963  

Western Digital Corp.(b)

     1,235       47,523  

Zebra Technologies Corp., Class A(b)

     192       57,648  
    

 

 

 
       1,418,146  
    

 

 

 

Materials-0.68%

    

Steel Dynamics, Inc.

     180       22,700  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $3,581,283)

 

    3,317,376  
    

 

 

 

 

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

 

    6    

 

 

 

 


 

Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)–(continued)

February 28, 2023

(Unaudited)

    

 

        Shares      Value  

Money Market Funds-0.07%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)
(Cost $2,460)

     2,460      $ 2,460  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.95%
(Cost $3,583,743)

 

    3,319,836  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-8.16%

 

Invesco Private Government Fund,
4.58%(d)(e)(f)

     75,931       75,931  
        Shares      Value  

Money Market Funds-(continued)

 

Invesco Private Prime Fund, 4.83%(d)(e)(f)

     195,212      $ 195,251  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $271,189)

 

    271,182  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-108.11%
(Cost $3,854,932)

 

    3,591,018  

OTHER ASSETS LESS LIABILITIES-(8.11)%

 

    (269,479
    

 

 

 

NET ASSETS-100.00%

     $ 3,321,539  
    

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

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 February 28, 2023.

(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 six months ended February 28, 2023.

 

    Value
August 31, 2022
  Purchases
at Cost
  Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
  Value
February 28, 2023
  Dividend
Income

Investments in Affiliated Money Market Funds:

                                                         

Invesco Government & Agency Portfolio, Institutional Class

      $        279         $    16,099         $ (13,918 )         $ -         $ -             $     2,460         $ 24

Investments Purchased with Cash Collateral from Securities on Loan:

                                                                   

Invesco Private Government Fund

        38,307           547,120           (509,496 )           -           -               75,931           1,051 *

Invesco Private Prime Fund

        98,504           1,242,868                (1,146,143 )           (10 )           32                    195,251                2,916 *
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

             

 

 

         

 

 

 

Total

      $ 137,090         $ 1,806,087         $ (1,669,557 )         $ (10 )         $ 32             $ 273,642         $ 3,991
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

             

 

 

         

 

 

 

 

*

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 February 28, 2023.

(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.

 

    7    

 

 

 

 


 

Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)–(continued)

February 28, 2023

(Unaudited)

    

 

Portfolio Composition

Sector Breakdown (% of the Fund’s Net Assets)

as of February 28, 2023

Information Technology

     42.70     

Health Care

     18.27     

Consumer Discretionary

     13.59     

Communication Services

     12.34     

Industrials

     9.67     

Sector Types Each Less Than 3%

     3.31     

Money Market Funds Plus Other Assets Less Liabilities

     0.12     

 

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

 

    8    

 

 

 

 


 

Invesco NASDAQ 100 ETF (QQQM)

February 28, 2023

(Unaudited)

Schedule of Investments(a)

 

        Shares      Value  

Common Stocks & Other Equity Interests-99.97%

 

Communication Services-16.02%

    

Activision Blizzard, Inc.

     454,788      $ 34,677,585  

Alphabet, Inc., Class A(b)

     2,727,248       245,615,955  

Alphabet, Inc., Class C(b)

     2,726,384       246,192,475  

Charter Communications, Inc.,

    

Class A(b)(c)

     90,415       33,237,458  

Comcast Corp., Class A

     2,507,111       93,189,316  

Electronic Arts, Inc.

     160,410       17,795,885  

Meta Platforms, Inc., Class A(b)

     1,306,879       228,625,412  

Netflix, Inc.(b)

     258,591       83,299,919  

Sirius XM Holdings, Inc.(c)

     2,260,500       9,923,595  

T-Mobile US, Inc.(b)(c)

     723,082       102,807,799  

Warner Bros Discovery, Inc.(b)(c)

     1,411,341       22,045,147  
    

 

 

 
       1,117,410,546  
    

 

 

 

Consumer Discretionary-15.85%

    

Airbnb, Inc., Class A(b)

     231,456       28,533,896  

Amazon.com, Inc.(b)

     4,570,131       430,643,444  

Booking Holdings, Inc.(b)

     22,527       56,858,148  

Dollar Tree, Inc.(b)

     128,585       18,680,829  

eBay, Inc.

     315,306       14,472,545  

JD.com, Inc., ADR (China)

     282,304       12,545,590  

Lucid Group, Inc.(b)(c)

     976,612       8,916,468  

lululemon athletica, inc.(b)

     71,128       21,992,778  

Marriott International, Inc., Class A

     183,935       31,129,159  

MercadoLibre, Inc. (Brazil)(b)

     29,239       35,671,580  

O’Reilly Automotive, Inc.(b)

     36,415       30,228,092  

PDD Holdings Inc., ADR (China)(b)

     272,045       23,866,508  

Rivian Automotive, Inc., Class A(b)(c)

     530,654       10,241,622  

Ross Stores, Inc.

     201,686       22,294,370  

Starbucks Corp.

     667,004       68,094,438  

Tesla, Inc.(b)

     1,414,582       290,993,663  
    

 

 

 
       1,105,163,130  
    

 

 

 

Consumer Staples-6.02%

    

Costco Wholesale Corp.

     257,147       124,505,434  

Keurig Dr Pepper, Inc.

     822,986       28,434,166  

Kraft Heinz Co. (The)

     711,921       27,722,204  

Mondelez International, Inc., Class A

     793,709       51,733,953  

Monster Beverage Corp.(b)

     303,208       30,854,446  

PepsiCo, Inc.

     800,607       138,929,333  

Walgreens Boots Alliance, Inc.

     502,597       17,857,271  
    

 

 

 
       420,036,807  
    

 

 

 

Energy-0.46%

    

Baker Hughes Co., Class A

     581,974       17,808,405  

Diamondback Energy, Inc.

     102,235       14,372,196  
    

 

 

 
       32,180,601  
    

 

 

 

Health Care-6.37%

    

Align Technology, Inc.(b)

     45,373       14,042,944  

Amgen, Inc.

     310,043       71,824,561  

AstraZeneca PLC, ADR (United Kingdom)

     355,117       23,146,526  

Biogen, Inc.(b)

     83,720       22,592,679  

DexCom, Inc.(b)

     224,455       24,916,750  

Gilead Sciences, Inc.

     728,948       58,702,182  

IDEXX Laboratories, Inc.(b)

     48,184       22,802,596  

Illumina, Inc.(b)

     91,388       18,204,490  

Intuitive Surgical, Inc.(b)

     205,300       47,093,767  
        Shares      Value  

Health Care-(continued)

    

Moderna, Inc.(b)(c)

     223,214      $ 30,984,335  

Regeneron Pharmaceuticals, Inc.(b)

     62,196       47,295,082  

Seagen, Inc.(b)(c)

     107,849       19,379,387  

Vertex Pharmaceuticals, Inc.(b)

     149,150       43,296,754  
    

 

 

 
       444,282,053  
    

 

 

 

Industrials-3.59%

    

Cintas Corp.

     59,050       25,891,653  

Copart, Inc.(b)

     276,794       19,502,905  

CoStar Group, Inc.(b)(c)

     236,339       16,699,714  

CSX Corp.

     1,221,759       37,251,432  

Fastenal Co.

     332,804       17,159,374  

Honeywell International, Inc.

     390,669       74,805,300  

Old Dominion Freight Line, Inc.

     64,227       21,789,652  

PACCAR, Inc.

     303,169       21,888,802  

Verisk Analytics, Inc.

     90,843       15,544,146  
    

 

 

 
          250,532,978  
    

 

 

 

Information Technology-50.45%

    

Adobe, Inc.(b)

     270,144       87,513,149  

Advanced Micro Devices, Inc.(b)

     937,074       73,635,275  

Analog Devices, Inc.

     296,022       54,311,156  

ANSYS, Inc.(b)

     50,588       15,359,023  

Apple, Inc.

     5,731,706       844,910,782  

Applied Materials, Inc.

     499,905       58,063,966  

ASML Holding N.V., New York Shares (Netherlands)(c)

     51,324       31,704,375  

Atlassian Corp., Class A(b)(c)

     86,157       14,158,180  

Autodesk, Inc.(b)

     125,402       24,916,123  

Automatic Data Processing, Inc.

     241,038       52,984,973  

Broadcom, Inc.

     235,329       139,853,671  

Cadence Design Systems, Inc.(b)(c)

     159,356       30,746,147  

Cisco Systems, Inc.

     2,387,520       115,603,718  

Cognizant Technology Solutions Corp., Class A

     298,623       18,702,759  

Crowdstrike Holdings, Inc., Class A(b)

     126,850       15,309,527  

Datadog, Inc., Class A(b)(c)

     169,791       12,992,407  

Enphase Energy, Inc.(b)(c)

     78,940       16,619,238  

Fiserv, Inc.(b)

     369,035       42,472,238  

Fortinet, Inc.(b)

     453,958       26,983,264  

GLOBALFOUNDRIES, Inc.(b)(c)

     316,749       20,696,380  

Intel Corp.

     2,398,486       59,794,256  

Intuit, Inc.

     163,306       66,494,937  

KLA Corp.

     82,403       31,262,050  

Lam Research Corp.

     79,213       38,498,310  

Marvell Technology, Inc.

     495,462       22,370,109  

Microchip Technology, Inc.(c)

     319,699       25,905,210  

Micron Technology, Inc.

     631,882       36,535,417  

Microsoft Corp.

     3,325,507       829,447,956  

NVIDIA Corp.

     1,429,573       331,889,668  

NXP Semiconductors N.V. (China)

     150,611       26,881,051  

Palo Alto Networks, Inc.(b)(c)

     175,787       33,112,997  

Paychex, Inc.

     209,493       23,128,027  

PayPal Holdings, Inc.(b)(c)

     662,490       48,759,264  

QUALCOMM, Inc.

     651,446       80,473,124  

Synopsys, Inc.(b)

     88,929       32,348,813  

Texas Instruments, Inc.

     527,496       90,439,189  

Workday, Inc., Class A(b)

     117,447       21,782,895  

 

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

 

    9    

 

 

 

 


 

Invesco NASDAQ 100 ETF (QQQM)–(continued)

February 28, 2023

(Unaudited)

    

 

        Shares      Value  

Information Technology-(continued)

    

Zoom Video Communications, Inc., Class A(b)(c)

     142,717      $ 10,645,261  

Zscaler, Inc.(b)(c)

     83,743       10,982,894  
    

 

 

 
       3,518,287,779  
    

 

 

 

Utilities-1.21%

    

American Electric Power Co., Inc.

     298,588       26,266,787  

Constellation Energy Corp.

     190,034       14,231,646  

Exelon Corp.

     577,521       23,326,073  

Xcel Energy, Inc.

     318,049       20,536,424  
    

 

 

 
       84,360,930  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.97%
(Cost $7,947,043,336)

 

    6,972,254,824  
    

 

 

 
        Shares      Value  
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-2.46%

 

Invesco Private Government Fund, 4.58%(d)(e)(f)

     47,949,783      $ 47,949,783  

Invesco Private Prime Fund,
4.83%(d)(e)(f)

     123,445,432       123,470,117  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $171,419,904)

 

    171,419,900  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-102.43%
(Cost $8,118,463,240)

 

    7,143,674,724  

OTHER ASSETS LESS LIABILITIES-(2.43)%

 

    (169,676,594
    

 

 

 

NET ASSETS-100.00%

     $ 6,973,998,130  
    

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

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 February 28, 2023.

(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 six months ended February 28, 2023.

 

    Value
August 31,  2022
  Purchases
at Cost
  Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
  Value
February 28,  2023
  Dividend
Income

Investments in Affiliated Money Market Funds:

                                                         

Invesco Government & Agency Portfolio, Institutional Class

      $ 3,899,314         $ 41,219,699         $ (45,119,013 )         $ -         $ -             $ -           $ 38,963

Investments Purchased with Cash Collateral from Securities on Loan:

                                                         

Invesco Private Government Fund

           20,827,857                358,717,995                (331,596,069 )                -                -                    47,949,783                638,617 *

Invesco Private Prime Fund

        53,557,349           767,833,561           (697,934,889 )           (3,142 )           17,238               123,470,117           1,736,245 *
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

             

 

 

         

 

 

 

Total

      $ 78,284,520         $ 1,167,771,255         $ (1,074,649,971 )         $ (3,142 )         $ 17,238             $ 171,419,900         $ 2,413,825
     

 

 

         

 

 

         

 

 

         

 

 

         

 

 

             

 

 

         

 

 

 

 

*

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 February 28, 2023.

(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.

 

    10    

 

 

 

 


 

Invesco NASDAQ 100 ETF (QQQM)–(continued)

February 28, 2023

(Unaudited)

    

 

Portfolio Composition

Sector Breakdown (% of the Fund’s Net Assets)

as of February 28, 2023

Information Technology

     50.45     

Communication Services

     16.02     

Consumer Discretionary

     15.85     

Health Care

     6.37     

Consumer Staples

     6.02     

Industrials

     3.59     

Sector Types Each Less Than 3%

     1.67     

Money Market Funds Plus Other Assets Less Liabilities

     0.03     

 

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

 

    11    

 

 

 

 


 

Invesco NASDAQ Future Gen 200 ETF (QQQS)

February 28, 2023

(Unaudited)

Schedule of Investments(a)

 

        Shares      Value  

Common Stocks & Other Equity Interests-99.99%

 

Communication Services-2.17%

    

Bandwidth, Inc., Class A(b)

     1,103      $      17,538  

DISH Network Corp., Class A(b)

     1,545       17,628  

EchoStar Corp., Class A(b)

     1,425       28,443  

Roku, Inc., Class A(b)

     418       27,040  

TrueCar, Inc.(b)

     9,959       23,205  
    

 

 

 
       113,854  
    

 

 

 

Consumer Discretionary-8.31%

    

BRP, Inc. (Canada)

     331       28,618  

Fossil Group, Inc.(b)

     5,199       22,512  

Garrett Motion, Inc. (Switzerland)(b)

     3,503       27,043  

Gentex Corp.

     858       24,496  

Gentherm, Inc.(b)

     346       21,974  

Goodyear Tire & Rubber Co. (The)(b)

     2,210       25,106  

GoPro, Inc., Class A(b)

     4,525       23,485  

Helen of Troy Ltd.(b)

     256       28,849  

Johnson Outdoors, Inc., Class A

     446       28,928  

MasterCraft Boat Holdings, Inc.(b)

     981       33,128  

Newell Brands, Inc.

     1,912       28,087  

Purple Innovation, Inc.(b)

     4,911       21,216  

Qurate Retail, Inc., Class A(b)

     10,553       22,267  

Sleep Number Corp.(b)

     848       33,801  

Sonos, Inc.(b)

     1,440       27,979  

Universal Electronics, Inc.(b)

     1,134       14,424  

Vuzix Corp.(b)

     5,947       24,680  
    

 

 

 
       436,593  
    

 

 

 

Consumer Staples-0.36%

    

22nd Century Group, Inc.(b)

     21,017       18,989  
    

 

 

 

Energy-0.74%

    

Weatherford International PLC(b)

     581       38,706  
    

 

 

 

Health Care-53.45%

    

10X Genomics, Inc., Class A(b)

     642       30,508  

Aclaris Therapeutics, Inc.(b)

     1,630       20,310  

Adaptive Biotechnologies Corp.(b)

     2,825       24,154  

Affimed N.V. (Germany)(b)

     11,589       10,537  

Agenus, Inc.(b)

     9,185       18,921  

Agios Pharmaceuticals, Inc.(b)

     838       21,210  

Aldeyra Therapeutics, Inc.(b)

     4,504       30,447  

Alkermes PLC(b)

     1,001       26,767  

Alphatec Holdings, Inc.(b)

     2,457       36,388  

Altimmune, Inc.(b)

     2,492       31,374  

Amarin Corp. PLC, ADR (Ireland)(b)

     21,906       44,469  

Amicus Therapeutics, Inc.(b)

     2,088       27,541  

AngioDynamics, Inc.(b)

     1,915       23,708  

Apollo Endosurgery, Inc.(b)

     2,448       24,309  

Arbutus Biopharma Corp.(b)

     10,735       29,843  

Ardelyx, Inc.(b)

     14,643       42,172  

AtriCure, Inc.(b)

     544       20,944  

Avadel Pharmaceuticals PLC, ADR(b)

     2,705       26,915  

Azenta, Inc.(b)

     420       18,434  

Bionano Genomics, Inc.(b)

     12,338       16,533  

Bluebird Bio, Inc.(b)

     3,185       16,562  

Cara Therapeutics, Inc.(b)

     2,142       21,763  

Cardiovascular Systems, Inc.(b)

     1,799       35,458  

Chimerix, Inc.(b)

     11,428       18,056  

Codexis, Inc.(b)

     4,534       21,922  
        Shares      Value  

Health Care-(continued)

    

Coherus Biosciences, Inc.(b)

     3,615      $      24,474  

Concert Pharmaceuticals, Inc.(b)

     5,224       43,777  

CTI BioPharma Corp.(b)

     4,120       22,495  

Cymabay Therapeutics, Inc.(b)

     7,435       59,480  

CytomX Therapeutics, Inc.(b)

     14,253       30,644  

DENTSPLY SIRONA, Inc.

     820       31,217  

Eagle Pharmaceuticals, Inc.(b)

     683       19,124  

Enanta Pharmaceuticals, Inc.(b)

     576       27,936  

FibroGen, Inc.(b)

     1,749       38,828  

G1 Therapeutics, Inc.(b)

     4,161       15,063  

Geron Corp.(b)

     10,690       29,718  

Heron Therapeutics, Inc.(b)

     9,151       21,688  

ICU Medical, Inc.(b)

     158       26,961  

IGM Biosciences, Inc.(b)

     1,127       23,689  

I-Mab, ADR (China)(b)

     6,702       28,819  

ImmunoGen, Inc.(b)

     4,778       18,539  

Innoviva, Inc.(b)

     1,889       22,800  

Inovio Pharmaceuticals, Inc.(b)

     12,156       15,317  

Integra LifeSciences Holdings Corp.(b)

     460       25,585  

Intercept Pharmaceuticals, Inc.(b)

     1,663       33,559  

Ionis Pharmaceuticals, Inc.(b)

     608       21,827  

Ironwood Pharmaceuticals, Inc.(b)

     2,048       23,081  

KalVista Pharmaceuticals, Inc.(b)

     4,669       34,224  

Karyopharm Therapeutics, Inc.(b)

     4,688       14,158  

Lexicon Pharmaceuticals, Inc.(b)

     11,589       26,075  

Ligand Pharmaceuticals, Inc.(b)

     340       24,528  

Liquidia Corp.(b)

     5,016       37,971  

LivaNova PLC(b)

     448       21,199  

MacroGenics, Inc.(b)

     3,925       23,903  

Madrigal Pharmaceuticals, Inc.(b)

     358       97,022  

MannKind Corp.(b)

     5,393       28,475  

Masimo Corp.(b)

     174       29,112  

Merit Medical Systems, Inc.(b)

     351       24,774  

Merrimack Pharmaceuticals, Inc.(b)

     2,083       23,913  

Mersana Therapeutics, Inc.(b)

     3,724       22,567  

Merus N.V. (Netherlands)(b)

     1,616       30,817  

Milestone Pharmaceuticals, Inc. (Canada)(b)

     5,051       15,961  

MiMedx Group, Inc.(b)

     7,631       36,705  

NanoString Technologies, Inc.(b)

     3,603       35,165  

Nektar Therapeutics(b)

     8,857       12,223  

NGM Biopharmaceuticals, Inc.(b)

     4,484       21,254  

NuVasive, Inc.(b)

     638       27,581  

Omeros Corp.(b)

     11,761       44,339  

OmniAb, Inc.(b)(c)

     83       0  

OmniAb, Inc.(b)(c)

     83       0  

Omnicell, Inc.(b)

     481       26,186  

OPKO Health, Inc.(b)

     16,532       18,846  

Oramed Pharmaceuticals, Inc. (Israel)(b)

     2,935       6,163  

OraSure Technologies, Inc.(b)

     4,921       31,051  

Orthofix Medical, Inc.(b)

     1,403       28,902  

Pacific Biosciences of California, Inc.(b)

     2,354       21,374  

Paratek Pharmaceuticals, Inc.(b)

     11,171       19,549  

PDS Biotechnology Corp.(b)

     2,747       21,015  

Personalis, Inc.(b)

     9,763       29,387  

Phibro Animal Health Corp., Class A

     2,049       32,190  

Precision BioSciences, Inc.(b)

     18,102       20,274  

Protagonist Therapeutics, Inc.(b)

     3,180       51,580  

PTC Therapeutics, Inc.(b)

     609       26,595  

 

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

 

    12    

 

 

 

 


 

Invesco NASDAQ Future Gen 200 ETF (QQQS)–(continued)

February 28, 2023

(Unaudited)

    

 

        Shares      Value  

Health Care-(continued)

    

Quanterix Corp.(b)

     1,865      $      20,515  

Reata Pharmaceuticals, Inc., Class A(b)

     638       19,886  

Revance Therapeutics, Inc.(b)

     1,161       40,287  

Rigel Pharmaceuticals, Inc.(b)

     37,436       56,528  

Sangamo Therapeutics, Inc.(b)

     6,775       20,664  

Scilex Holding Co., Class C (Singapore)(b)

     2,541       21,976  

Selecta Biosciences, Inc.(b)

     18,931       30,857  

SI-BONE, Inc.(b)

     2,019       39,926  

SIGA Technologies, Inc.

     2,701       18,502  

Silk Road Medical, Inc.(b)

     475       25,170  

Spero Therapeutics, Inc.(b)

     12,783       18,919  

Supernus Pharmaceuticals, Inc.(b)

     688       25,862  

SurModics, Inc.(b)

     686       14,982  

Sutro Biopharma, Inc.(b)

     3,311       18,674  

Tactile Systems Technology, Inc.(b)

     2,944       42,541  

Theravance Biopharma, Inc.(b)

     2,350       25,380  

uniQure N.V. (Netherlands)(b)

     937       19,639  

Vanda Pharmaceuticals, Inc.(b)

     2,273       14,638  

Varex Imaging Corp.(b)

     1,168       20,662  

Vaxart, Inc.(b)

     21,017       16,381  

Veradigm, Inc.(b)

     1,310       21,759  

ViewRay, Inc.(b)

     5,146       22,231  

X4 Pharmaceuticals, Inc.(b)

     16,532       15,507  

Xencor, Inc.(b)

     834       26,796  
    

 

 

 
       2,807,226  
    

 

 

 

Industrials-4.20%

 

AeroVironment, Inc.(b)

     275       23,579  

Astronics Corp.(b)

     2,998       45,690  

Interface, Inc.

     2,290       20,198  

Kratos Defense & Security Solutions, Inc.(b)

     2,605       32,953  

Matthews International Corp., Class A

     784       29,917  

MillerKnoll, Inc.

     1,217       29,050  

SunPower Corp.(b)

     1,023       15,365  

TPI Composites, Inc.(b)

     2,053       23,733  
    

 

 

 
       220,485  
    

 

 

 

Information Technology-29.43%

 

8x8, Inc.(b)

     5,890       31,335  

Absolute Software Corp. (Canada)

     2,559       22,007  

ACM Research, Inc., Class A(b)

     2,737       28,410  

Aehr Test Systems(b)

     952       31,749  

Alpha & Omega Semiconductor Ltd.(b)

     707       18,884  

Amkor Technology, Inc.

     885       22,798  

Atomera, Inc.(b)

     2,908       19,280  

Aviat Networks, Inc.(b)

     788       27,998  

Axcelis Technologies, Inc.(b)

     315       40,490  

AXT, Inc.(b)

     4,670       20,408  

Bel Fuse, Inc., Class B

     720       25,574  

Brightcove, Inc.(b)

     4,484       24,079  

CalAmp Corp.(b)

     6,870       29,335  

Cirrus Logic, Inc.(b)

     337       34,627  

CommScope Holding Co., Inc.(b)

     2,793       20,221  

CommVault Systems, Inc.(b)

     383       22,551  

Comtech Telecommunications Corp.

     2,159       34,522  

Digimarc Corp.(b)

     1,133       23,102  

Dropbox, Inc., Class A(b)

     1,072       21,869  

Edgio, Inc.(b)

     17,222       21,183  

Extreme Networks, Inc.(b)

     1,183       22,146  
        Shares      Value  

Information Technology-(continued)

 

FARO Technologies, Inc.(b)

     844      $      22,957  

FormFactor, Inc.(b)

     1,075       32,357  

Himax Technologies, Inc., ADR (Taiwan)

     3,366       25,009  

Hollysys Automation Technologies Ltd. (China)

     1,476       27,144  

Immersion Corp.

     3,529       26,997  

Infinera Corp.(b)

     3,742       26,456  

Inseego Corp.(b)

     19,527       17,486  

InterDigital, Inc.

     502       36,641  

IPG Photonics Corp.(b)

     277       34,137  

Itron, Inc.(b)

     466       25,989  

Kimball Electronics, Inc.(b)

     1,074       26,861  

Kulicke & Soffa Industries, Inc. (Singapore)

     517       27,556  

Lattice Semiconductor Corp.(b)

     346       29,396  

Littelfuse, Inc.

     101       26,132  

LivePerson, Inc.(b)

     2,112       21,373  

Lumentum Holdings, Inc.(b)

     451       24,268  

Materialise N.V., ADR (Belgium)(b)

     2,570       22,102  

MaxLinear, Inc.(b)

     678       23,194  

MicroVision, Inc.(b)

     8,185       20,954  

Mitek Systems, Inc.(b)

     2,425       22,552  

MKS Instruments, Inc.

     295       28,594  

NETGEAR, Inc.(b)

     1,257       22,752  

nLight, Inc.(b)

     2,284       25,809  

Nova Ltd. (Israel)(b)

     295       26,721  

OSI Systems, Inc.(b)

     285       26,377  

Power Integrations, Inc.

     308       25,333  

Rambus, Inc.(b)

     658       29,103  

Ribbon Communications, Inc.(b)

     9,950       44,377  

Semtech Corp.(b)

     807       24,864  

Silicon Laboratories, Inc.(b)

     173       30,886  

Stratasys Ltd.(b)

     1,767       22,883  

Synaptics, Inc.(b)

     234       27,521  

Turtle Beach Corp.(b)

     2,597       21,010  

Universal Display Corp.

     220       29,887  

Veeco Instruments, Inc.(b)

     1,247       26,524  

Verint Systems, Inc.(b)

     643       24,035  

Viasat, Inc.(b)

     727       23,090  

Viavi Solutions, Inc.(b)

     2,189       23,948  
    

 

 

 
       1,545,843  
    

 

 

 

Materials-1.33%

    

Amyris, Inc.(b)

     14,638       18,297  

Haynes International, Inc.

     497       27,191  

Innospec, Inc.

     223       24,410  
    

 

 

 
       69,898  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $4,748,855)

 

    5,251,594  
    

 

 

 

Money Market Funds-0.01%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)
(Cost $343)

     343       343  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-100.00%
(Cost $4,749,198)

 

    5,251,937  

OTHER ASSETS LESS LIABILITIES-0.00%

       261  

NET ASSETS-100.00%

     $ 5,252,198  
    

 

 

 

 

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

 

    13    

 

 

 

 


 

Invesco NASDAQ Future Gen 200 ETF (QQQS)–(continued)

February 28, 2023

(Unaudited)

    

 

Investment Abbreviations:

ADR-American Depositary Receipt

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) 

Security valued using significant unobservable inputs (Level 3). See Note 4.

(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 period ended February 28, 2023.

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
   Realized
Gain
   Value
February 28, 2023
  Dividend
Income
Investments in Affiliated Money Market Funds:                                                                                  
Invesco Government & Agency Portfolio, Institutional Class                      $ -                        $37,520      $ (37,177 )                     $ -                                      $ -                                      $ 343                               $ 16         
Investments Purchased with Cash Collateral from Securities on Loan:                                                                                  
Invesco Private Government Fund             -             136,868        (136,868 )            -                  -                  -                 58 *    
Invesco Private Prime Fund             -             37,646        (37,646 )            -                  -                  -                 5 *    
         

 

 

           

 

 

      

 

 

          

 

 

                

 

 

                

 

 

               

 

 

     
Total           $ -             $212,034      $ (211,691 )          $ -                $ -                $ 343               $ 79    
         

 

 

           

 

 

      

 

 

          

 

 

                

 

 

                

 

 

               

 

 

     

 

*

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 February 28, 2023.

 

Portfolio Composition      
Sector Breakdown (% of the Fund’s Net Assets)
as of February 28, 2023
Health Care      53.45     
Information Technology      29.43     
Consumer Discretionary      8.31     
Industrials      4.20     
Sector Types Each Less Than 3%      4.60     
Money Market Funds Plus Other Assets Less Liabilities      0.01     

 

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

 

    14    

 

 

 

 



 

Invesco NASDAQ Next Gen 100 ETF (QQQJ)

February 28, 2023

(Unaudited)

Schedule of Investments(a)

 

        Shares      Value  

Common Stocks & Other Equity Interests-99.87%

 

Communication Services-11.77%

    

Baidu, Inc., ADR (China)(b)

     88,182      $    12,141,780  

Fox Corp., Class A

     168,474       5,899,959  

Fox Corp., Class B

     133,862       4,317,050  

Liberty Broadband Corp., Class A(b)

     10,568       916,563  

Liberty Broadband Corp., Class C(b)

     70,920       6,146,636  

Liberty Global PLC, Class A (United Kingdom)(b)

     95,779       1,962,512  

Liberty Global PLC, Class C (United Kingdom)(b)(c)

     153,088       3,253,120  

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

     115,484       7,837,899  

Match Group, Inc.(b)

     155,542       6,442,550  

News Corp., Class A

     213,023       3,653,344  

News Corp., Class B

     107,670       1,858,384  

Paramount Global, Class B(c)

     338,982       7,260,994  

Take-Two Interactive Software, Inc.(b)

     93,207       10,210,827  

Trade Desk, Inc. (The), Class A(b)

     247,201       13,833,368  

ZoomInfo Technologies, Inc., Class A(b)

     224,881       5,435,374  
    

 

 

 
       91,170,360  
    

 

 

 

Consumer Discretionary-11.42%

    

Caesars Entertainment, Inc.(b)

     119,512       6,066,429  

Etsy, Inc.(b)(c)

     69,736       8,466,648  

Expedia Group, Inc.(b)

     83,911       9,143,782  

Five Below, Inc.(b)(c)

     30,928       6,318,590  

Hasbro, Inc.

     76,942       4,232,579  

LKQ Corp.

     148,274       8,494,618  

Pool Corp.

     21,763       7,766,344  

Tractor Supply Co.

     61,338       14,307,702  

Trip.com Group Ltd., ADR (China)(b)(c)

     250,329       8,899,196  

Ulta Beauty, Inc.(b)

     28,473       14,771,792  
    

 

 

 
       88,467,680  
    

 

 

 

Consumer Staples-2.36%

    

Casey’s General Stores, Inc.

     20,722       4,309,140  

Coca-Cola Europacific Partners PLC (United Kingdom)

     253,863       13,962,465  
    

 

 

 
       18,271,605  
    

 

 

 

Energy-2.16%

    

APA Corp.

     178,398       6,846,915  

Chesapeake Energy Corp.

     74,665       6,033,679  

New Fortress Energy, Inc.(c)

     116,277       3,835,978  
    

 

 

 
       16,716,572  
    

 

 

 

Health Care-24.06%

    

Acadia Healthcare Co., Inc.(b)

     50,734       3,678,722  

Alnylam Pharmaceuticals, Inc.(b)

     68,341       13,083,884  

Argenx SE, ADR (Netherlands)(b)

     17,244       6,311,649  

BeiGene Ltd., ADR (China)(b)(c)

     26,605       5,976,281  

BioMarin Pharmaceutical, Inc.(b)

     103,093       10,267,032  

BioNTech SE, ADR (Germany)

     50,998       6,632,290  

Bio-Techne Corp.

     87,491       6,355,346  

Bruker Corp.

     81,891       5,643,928  

Henry Schein, Inc.(b)

     75,453       5,908,724  

Hologic, Inc.(b)

     136,439       10,866,002  

Horizon Therapeutics PLC(b)

     125,877       13,782,273  

ICON PLC(b)(c)

     45,287       10,218,106  
        Shares      Value  

Health Care-(continued)

    

Incyte Corp.(b)

     123,440      $      9,502,411  

Insulet Corp.(b)

     38,491       10,637,373  

Jazz Pharmaceuticals PLC(b)

     35,128       4,931,971  

Karuna Therapeutics, Inc.(b)(c)

     19,171       3,823,081  

Neurocrine Biosciences, Inc.(b)

     53,599       5,526,057  

Novocure Ltd.(b)(c)

     58,466       4,500,128  

R1 RCM, Inc.(b)(c)

     232,076       3,295,479  

Repligen Corp.(b)

     30,938       5,394,659  

Royalty Pharma PLC, Class A

     244,647       8,770,595  

Sanofi, ADR

     161,022       7,543,881  

Sarepta Therapeutics, Inc.(b)(c)

     48,889       5,970,814  

Shockwave Medical, Inc.(b)

     20,077       3,819,448  

United Therapeutics Corp.(b)

     25,422       6,254,829  

Viatris, Inc.

     675,504       7,700,746  
    

 

 

 
       186,395,709  
    

 

 

 

Industrials-10.60%

    

American Airlines Group, Inc.(b)

     362,007       5,784,872  

Avis Budget Group, Inc.(b)(c)

     23,068       5,067,117  

Axon Enterprise, Inc.(b)

     39,630       7,938,285  

C.H. Robinson Worldwide, Inc.

     65,613       6,558,675  

Expeditors International of Washington, Inc.

     88,239       9,226,270  

Grab Holdings Ltd., Class A (Singapore)(b)(c)

     2,061,788       6,618,339  

J.B. Hunt Transport Services, Inc.

     57,412       10,379,516  

Lincoln Electric Holdings, Inc.(c)

     32,215       5,409,865  

Middleby Corp. (The)(b)(c)

     29,987       4,662,679  

Nordson Corp.

     31,780       6,980,159  

Tetra Tech, Inc.

     29,464       4,033,327  

United Airlines Holdings, Inc.(b)

     182,143       9,464,150  
    

 

 

 
       82,123,254  
    

 

 

 

Information Technology-35.00%

    

Akamai Technologies, Inc.(b)

     87,649       6,363,317  

Amdocs Ltd.

     67,953       6,225,174  

Bentley Systems, Inc., Class B(c)

     154,210       6,239,337  

CDW Corp.

     75,252       15,232,510  

Check Point Software Technologies Ltd. (Israel)(b)

     69,578       8,608,190  

Cognex Corp.

     96,375       4,570,103  

DocuSign, Inc.(b)

     111,888       6,864,329  

Entegris, Inc.(c)

     83,023       7,076,050  

F5, Inc.(b)

     33,622       4,807,274  

First Solar, Inc.

     59,157       10,005,815  

Flex Ltd.(b)

     252,236       5,740,891  

Gen Digital, Inc.

     361,491       7,052,689  

Jack Henry & Associates, Inc.

     40,665       6,678,820  

Logitech International S.A., Class R (Switzerland)(c)

     90,090       4,914,410  

Manhattan Associates, Inc.(b)

     34,798       5,002,213  

MongoDB, Inc.(b)

     38,324       8,029,644  

Monolithic Power Systems, Inc.

     26,115       12,647,233  

NetApp, Inc.

     121,128       7,818,812  

Okta, Inc.(b)(c)

     84,628       6,033,130  

ON Semiconductor Corp.(b)

     240,100       18,586,141  

Open Text Corp. (Canada)(c)

     150,534       5,175,359  

Paylocity Holding Corp.(b)

     31,025       5,975,725  

PTC, Inc.(b)

     65,214       8,173,271  

Qorvo, Inc.(b)

     56,527       5,703,009  

Seagate Technology Holdings PLC(c)

     115,053       7,427,822  

 

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

 

    15    

 

 

 

 


 

Invesco NASDAQ Next Gen 100 ETF (QQQJ)–(continued)

February 28, 2023

(Unaudited)

    

 

        Shares      Value  

Information Technology-(continued)

    

Skyworks Solutions, Inc.

     88,873      $ 9,915,561  

SolarEdge Technologies, Inc.(b)

     31,017       9,860,925  

Splunk, Inc.(b)(c)

     90,688       9,295,520  

SS&C Technologies Holdings, Inc.

     140,286       8,234,788  

Teradyne, Inc.

     86,794       8,778,345  

Trimble, Inc.(b)

     137,347       7,150,285  

VeriSign, Inc.(b)

     58,874       11,588,169  

Western Digital Corp.(b)

     176,918       6,807,805  

Zebra Technologies Corp., Class A(b)

     28,806       8,649,001  
    

 

 

 
       271,231,667  
    

 

 

 

Materials-1.58%

    

Steel Dynamics, Inc.

     97,368       12,279,079  
    

 

 

 

Utilities-0.92%

    

Alliant Energy Corp.

     139,890       7,172,160  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $827,901,920)

 

    773,828,086  
    

 

 

 

Money Market Funds-0.08%

    

Invesco Government & Agency Portfolio, Institutional Class, 4.51%(d)(e)
(Cost $639,770)

     639,770       639,770  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.95%
(Cost $828,541,690)

 

    774,467,856  
    

 

 

 
        Shares      Value  
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-9.74%

 

Invesco Private Government Fund,
4.58%(d)(e)(f)

     21,117,545      $ 21,117,545  

Invesco Private Prime Fund, 4.83%(d)(e)(f)

     54,291,400       54,302,257  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $75,423,076)

 

    75,419,802  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-109.69%
(Cost $903,964,766)

 

    849,887,658  

OTHER ASSETS LESS LIABILITIES-(9.69)%

 

    (75,052,487
    

 

 

 

NET ASSETS-100.00%

 

  $ 774,835,171  
    

 

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

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 February 28, 2023.

(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 six months ended February 28, 2023.

 

     Value
August 31, 2022
     Purchases
at Cost
     Proceeds
from Sales
    Change in
Unrealized
Appreciation
(Depreciation)
     Realized
Gain
     Value
February 28, 2023
     Dividend
Income
 
Investments in Affiliated
Money Market Funds:
                   
Invesco Government & Agency
Portfolio, Institutional Class
     $ -              $     4,992,144      $     (4,352,374     $        -        $        -        $      639,770      $ 5,805  

 

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

 

    16    

 

 

 

 


 

Invesco NASDAQ Next Gen 100 ETF (QQQJ)–(continued)

February 28, 2023

(Unaudited)

    

 

     Value
August 31, 2022
     Purchases
at Cost
     Proceeds
from Sales
    Change in
Unrealized
Appreciation
(Depreciation)
     Realized
Gain
     Value
February 28, 2023
     Dividend
Income
 
Investments Purchased with Cash Collateral from Securities on Loan:                                           
Invesco Private Government Fund       $ 29,805,913         $ 147,663,683      $ (156,352,051               $ -                    $ -                     $ 21,117,545         $ 497,224
Invesco Private Prime Fund         85,560,046           291,718,035        (322,991,952        (11,458           27,586              54,302,257           1,367,352
     

 

 

       

 

 

    

 

 

      

 

 

         

 

 

          

 

 

       

 

 

 
Total       $ 115,365,959         $ 444,373,862      $ (483,696,377      $ (11,458         $ 27,586            $ 76,059,572         $ 1,870,381  
     

 

 

       

 

 

    

 

 

      

 

 

         

 

 

          

 

 

       

 

 

 

 

*

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 February 28, 2023.

(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.

 

Portfolio Composition
Sector Breakdown (% of the Fund’s Net Assets)
as of February 28, 2023
Information Technology      35.00     
Health Care      24.06     
Communication Services      11.77     
Consumer Discretionary      11.42     
Industrials      10.60     
Sector Types Each Less Than 3%      7.02     
Money Market Funds Plus Other Assets Less Liabilities      0.13     

 

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

 

    17    

 

 

 

 


 

Statements of Assets and Liabilities

February 28, 2023

(Unaudited)

 

   

Invesco ESG
NASDAQ 100
ETF (QQMG)

   

Invesco ESG
NASDAQ Next Gen
100 ETF (QQJG)

   

Invesco NASDAQ

100 ETF (QQQM)

   

Invesco NASDAQ

Future Gen 200

    ETF (QQQS)    

   

Invesco NASDAQ

Next Gen 100

    ETF (QQQJ)    

 

Assets:

                                                                                   

Unaffiliated investments in securities, at value(a)

    $ 9,931,378         $ 3,317,376         $ 6,972,254,824         $ 5,251,594         $ 773,828,086  

Affiliated investments in securities, at value

      210,396           273,642           171,419,900           343           76,059,572  

Cash

      -           114           -           -           -  

Receivable for:

                           

Dividends

      8,480           2,094           6,474,054           1,049           403,545  

Securities lending

      235           34           230,276           44           12,813  

Investments sold

      -           -           8,468,011           -           1,756,912  

Fund shares sold

      -           -           12,080,883           -           -  

Foreign tax reclaims

      -           -           10,857           -           53,723  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Total assets

      10,150,489           3,593,260           7,170,938,805           5,253,030           852,114,651  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Liabilities:

                           

Due to custodian

      -           -           4,147,778           -           -  

Payable for:

                           

Investments purchased

      -           -           12,087,069           -           -  

Collateral upon return of securities loaned

      208,224           271,189           171,419,904           -           75,423,076  

Fund shares repurchased

      -           -           8,464,288           -           1,763,732  

Accrued unitary management fees

      1,567           532           821,636           830           92,672  

Accrued tax expenses

      -           -           -           2           -  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Total liabilities

      209,791           271,721           196,940,675           832           77,279,480  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net Assets

    $ 9,940,698         $ 3,321,539         $ 6,973,998,130         $ 5,252,198         $ 774,835,171  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net assets consist of:

                           

Shares of beneficial interest

    $ 12,522,169         $ 3,992,502         $ 8,088,985,832         $ 4,695,635         $ 1,099,874,634  

Distributable earnings (loss)

      (2,581,471)           (670,963)           (1,114,987,702)           556,563           (325,039,463)  

Net Assets

    $ 9,940,698         $ 3,321,539         $ 6,973,998,130         $ 5,252,198         $ 774,835,171  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Shares outstanding (unlimited amount authorized, $0.01 par value)

      500,001           175,001           57,750,001           180,001           30,770,001  

Net asset value

    $ 19.88         $ 18.98         $ 120.76         $ 29.18         $ 25.18  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Market price

    $ 19.92         $ 18.99         $ 120.79         $ 29.23         $ 25.17  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Unaffiliated investments in securities, at cost

    $ 12,077,806         $ 3,581,283         $ 7,947,043,336         $ 4,748,855         $ 827,901,920  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Affiliated investments in securities, at cost

    $ 210,396         $ 273,649         $ 171,419,904         $ 343         $ 76,062,846  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

(a) Includes securities on loan with an aggregate value of:

    $ 203,842         $ 262,933         $ 167,578,439         $ -         $ 73,781,721  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

 

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

 

    18    

 

 

 

 


 

Statements of Operations

For the six months ended February 28, 2023

(Unaudited)

 

   

Invesco ESG
NASDAQ 100
ETF  (QQMG)

   

Invesco ESG
NASDAQ Next Gen
100 ETF (QQJG)

   

Invesco NASDAQ

100 ETF (QQQM)

   

Invesco NASDAQ

Future Gen 200

    ETF (QQQS)(a)    

   

Invesco NASDAQ

Next Gen 100

    ETF (QQQJ)    

 

Investment income:

                           

Unaffiliated dividend income

           $ 46,453                       $ 12,455                       $ 27,712,372         $ 3,535         $ 3,402,978  

Affiliated dividend income

      88           24           38,963                         16                         5,805  

Non-cash dividend income

      -           -           -           12,830           -  

Securities lending income, net

      1,626           204           1,130,481           44           126,197  

Foreign withholding tax

      (110         (265         (49,552         (27         (51,233
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Total investment income

      48,057           12,418           28,832,264           16,398           3,483,747  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Expenses:

                           

Unitary management fees

      9,448           2,906           4,207,533           3,425           578,759  

Tax expenses

      -           -           -           2           -  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Total expenses

      9,448           2,906           4,207,533           3,427           578,759  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Less: Waivers

      (2         -           (993         (1         (138
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net expenses

      9,446           2,906           4,206,540           3,426           578,621  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net investment income

      38,611           9,512           24,625,724           12,972           2,905,126  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Realized and unrealized gain (loss) from:

 

                       

Net realized gain (loss) from:

                           

Unaffiliated investment securities

      (253,963         (299,820         (200,524,195         (136,528         (177,505,753

Affiliated investment securities

      (3         32           17,238           -           27,586  

In-kind redemptions

      -           -           95,971,224           179,208           17,544,875  

Foreign currencies

      -           -           -           (1         -  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net realized gain (loss)

      (253,966         (299,788         (104,535,733         42,679           (159,933,292
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Change in net unrealized appreciation (depreciation) of:

                           

Unaffiliated investment securities

      239,507           354,118           45,432,309           502,739           172,989,161  

Affiliated investment securities

      -           (10         (3,142         -           (11,458
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Change in net unrealized appreciation

      239,507           354,108           45,429,167           502,739           172,977,703  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net realized and unrealized gain (loss)

      (14,459         54,320           (59,106,566         545,418           13,044,411  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

Net increase (decrease) in net assets resulting from operations

    $ 24,152         $ 63,832         $ (34,480,842       $ 558,390         $ 15,949,537  
   

 

 

       

 

 

       

 

 

       

 

 

       

 

 

 

 

(a) 

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

 

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

 

    19    

 

 

 

 


 

Statements of Changes in Net Assets

For the six months ended February 28, 2023 and the year ended August 31, 2022

(Unaudited)

 

    Invesco ESG
NASDAQ 100
ETF (QQMG)
      Invesco ESG
NASDAQ Next Gen
100 ETF (QQJG)
    Six Months  Ended
February 28, 2023
      Period Ended
August  31,
2022(a)
      Six Months  Ended
February 28,
2023
      Period Ended
August  31,
2022(a)

Operations:

                           

Net investment income

    $ 38,611             $ 54,533             $ 9,512             $ 9,581

Net realized gain (loss)

      (253,966 )           (195,353 )           (299,788 )           (108,308 )

Change in net unrealized appreciation (depreciation)

      239,507           (2,385,935 )           354,108           (618,022 )
   

 

 

         

 

 

         

 

 

         

 

 

 

Net increase (decrease) in net assets resulting from operations

      24,152           (2,526,755 )           63,832           (716,749 )
   

 

 

         

 

 

         

 

 

         

 

 

 

Distributions to Shareholders from:

 

                       

Distributable earnings

      (39,405 )           (39,471 )           (10,899 )           (7,146 )
   

 

 

         

 

 

         

 

 

         

 

 

 

Shareholder Transactions:

                           

Proceeds from shares sold

      -           12,522,177           449,447           3,543,054

Value of shares repurchased

      -           -           -           -
   

 

 

         

 

 

         

 

 

         

 

 

 

Net increase (decrease) in net assets resulting from share transactions

      -           12,522,177           449,447           3,543,054
   

 

 

         

 

 

         

 

 

         

 

 

 

Net increase (decrease) in net assets

      (15,253 )           9,955,951           502,380           2,819,159
   

 

 

         

 

 

         

 

 

         

 

 

 

Net assets:

                           

Beginning of period

      9,955,951           -           2,819,159           -
   

 

 

         

 

 

         

 

 

         

 

 

 

End of period

    $ 9,940,698         $ 9,955,951         $ 3,321,539         $ 2,819,159
   

 

 

         

 

 

         

 

 

         

 

 

 

Changes in Shares Outstanding:

                           

Shares sold

      -           500,001           25,000           150,001

Shares repurchased

      -           -           -           -

Shares outstanding, beginning of period.

      500,001           -           150,001           -
   

 

 

         

 

 

         

 

 

         

 

 

 

Shares outstanding, end of period

      500,001           500,001           175,001           150,001
   

 

 

         

 

 

         

 

 

         

 

 

 

 

(a) 

For the period October 25, 2021 (commencement of investment operations) through August 31, 2022.

(b) 

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

 

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

 

    20    

 

 

 

 


 

 

 

 

Invesco NASDAQ
100 ETF (QQQM)
  Invesco NASDAQ
Future Gen 200
ETF (QQQS)
  Invesco NASDAQ
Next Gen 100
ETF (QQQJ)
Six Months Ended
February 28,

2023
  Year Ended
August 31,
2022
  Period Ended
February 28,
2023(b)
  Six Months Ended
February 28,

2023
  Year Ended
August 31,

2022
                          
  $ 24,625,724     $ 25,895,892     $ 12,972     $ 2,905,126     $ 5,070,934
    (104,535,733 )       172,819,808       42,679       (159,933,292 )       (28,683,565 )
    45,429,167       (1,216,189,168 )       502,739       172,977,703       (322,084,445 )
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
   

  

(34,480,842


)

      (1,017,473,468 )       558,390       15,949,537       (345,697,076 )
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                          
    (23,673,933 )       (17,757,319 )       (1,827 )       (3,703,474 )       (11,397,622 )
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                          
    3,359,865,645       5,971,651,618       5,488,161       72,706,840       450,411,017
    (1,241,725,969 )       (1,831,569,039 )       (792,526 )       (113,287,955 )       (499,347,837 )
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    2,118,139,676       4,140,082,579       4,695,635       (40,581,115 )      

  

(48,936,820


)

 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    2,059,984,901       3,104,851,792       5,252,198       (28,335,052 )       (406,031,518 )
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                          
    4,914,013,229       1,809,161,437       -       803,170,223       1,209,201,741
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
  $ 6,973,998,130     $ 4,914,013,229     $ 5,252,198     $ 774,835,171     $ 803,170,223
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
                          
    28,620,000       41,870,000       210,001       3,000,000       14,550,000
    (10,780,000 )       (13,550,000 )       (30,000 )       (4,650,000 )       (16,890,000 )
    39,910,001       11,590,001       -       32,420,001       34,760,001
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 
    57,750,001       39,910,001       180,001       30,770,001       32,420,001
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

    21    

 

 

 

 


 

Financial Highlights

Invesco ESG NASDAQ 100 ETF (QQMG)

 

              For the Period
     Six Months Ended        October 25, 2021(a)
     February 28,        Through
     2023        August 31,
    

      (Unaudited)       

       

               2022              

Per Share Operating Performance:

             

Net asset value at beginning of period

     $ 19.91          $ 25.00
    

 

 

          

 

 

 

Net investment income(b)

       0.08            0.13

Net realized and unrealized gain (loss) on investments

       (0.03 )            (5.13 )
    

 

 

          

 

 

 

Total from investment operations

       0.05            (5.00 )
    

 

 

          

 

 

 

Distributions to shareholders from:

             

Net investment income

       (0.08 )            (0.09 )
    

 

 

          

 

 

 

Net asset value at end of period

     $ 19.88          $ 19.91
    

 

 

          

 

 

 

Market price at end of period(c)

     $ 19.92          $ 19.94
    

 

 

          

 

 

 

Net Asset Value Total Return(d)

       0.27 %            (20.03 )%(e)

Market Price Total Return(d)

       0.32 %            (19.91 )%(e)

Ratios/Supplemental Data:

             

Net assets at end of period (000’s omitted)

     $ 9,941          $ 9,956

Ratio to average net assets of:

             

Expenses

       0.20 %(f)            0.20 %(f)

Net investment income

       0.82 %(f)            0.69 %(f)

Portfolio turnover rate(g)

       5 %            10 %

 

(a) 

Commencement of investment operations.

(b) 

Based on average shares outstanding.

(c) 

The mean between the last bid and ask prices.

(d) 

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

(e) 

The net asset value total return from Fund Inception (October 27, 2021, the first day of trading on the exchange) to August 31, 2022 was (20.63)%. The market price total return from Fund Inception to August 31, 2022 was (20.54)%.

(f) 

Annualized.

(g) 

Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

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

 

    22    

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)

 

         For the Period
     Six Months Ended   October 25, 2021(a)
     February 28,   Through
     2023   August 31,
    

      (Unaudited)       

 

               2022              

Per Share Operating Performance:

        

Net asset value at beginning of period

     $ 18.79     $ 25.00
    

 

 

     

 

 

 

Net investment income(b)

       0.06       0.09

Net realized and unrealized gain (loss) on investments

       0.20       (6.23 )
    

 

 

     

 

 

 

Total from investment operations

       0.26       (6.14 )
    

 

 

     

 

 

 

Distributions to shareholders from:

        

Net investment income

       (0.07 )       (0.07 )
    

 

 

     

 

 

 

Net asset value at end of period

     $ 18.98     $ 18.79
    

 

 

     

 

 

 

Market price at end of period(c)

     $ 18.99     $ 18.81
    

 

 

     

 

 

 

Net Asset Value Total Return(d)

       1.42 %       (24.57 )%(e)

Market Price Total Return(d)

       1.37 %       (24.49 )%(e)

Ratios/Supplemental Data:

        

Net assets at end of period (000’s omitted)

     $ 3,322     $ 2,819

Ratio to average net assets of:

        

Expenses

       0.20 %(f)       0.20 %(f)

Net investment income

       0.65 %(f)       0.52 %(f)

Portfolio turnover rate(g)

       22 %       46 %

 

(a)

Commencement of investment operations.

(b) 

Based on average shares outstanding.

(c) 

The mean between the last bid and ask prices.

(d) 

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

(e) 

The net asset value total return from Fund Inception (October 27, 2021, the first day of trading on the exchange) to August 31, 2022 was (23.10)%. The market price total return from Fund Inception to August 31, 2022 was (23.05)%.

(f) 

Annualized.

(g) 

Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

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

 

    23    

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco NASDAQ 100 ETF (QQQM)

 

    Six Months Ended
February 28,
2023
  Year Ended August 31,   For the Period
October 12, 2020(a)
Through
August  31,
    (Unaudited)   2022   2021

Per Share Operating Performance:

           

Net asset value at beginning of period

    $ 123.13     $ 156.10     $ 120.98
   

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.51       0.98       0.74

Net realized and unrealized gain (loss) on investments

      (2.36 )       (33.24 )       34.93
   

 

 

     

 

 

     

 

 

 

Total from investment operations

      (1.85 )       (32.26 )       35.67
   

 

 

     

 

 

     

 

 

 

Distributions to shareholders from:

           

Net investment income

      (0.52 )       (0.71 )       (0.55 )
   

 

 

     

 

 

     

 

 

 

Net asset value at end of period

    $ 120.76     $ 123.13     $ 156.10
   

 

 

     

 

 

     

 

 

 

Market price at end of period(c)

    $ 120.79     $ 123.29     $ 156.11
   

 

 

     

 

 

     

 

 

 

Net Asset Value Total Return(d)

      (1.48 )%       (20.72 )%       29.56 %(e)

Market Price Total Return(d)

      (1.58 )%       (20.61 )%       29.57 %(e)

Ratios/Supplemental Data:

           

Net assets at end of period (000’s omitted)

    $ 6,973,998     $ 4,914,013     $ 1,809,161

Ratio to average net assets of:

           

Expenses

      0.15 %(f)       0.15 %       0.15 %(f)

Net investment income

      0.88 %(f)       0.71 %       0.61 %(f)

Portfolio turnover rate(g)

      7 %       6 %       5 %

 

(a) 

Commencement of investment operations.

(b) 

Based on average shares outstanding.

(c) 

The mean between the last bid and ask prices.

(d) 

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

(e) 

The net asset value total return from Fund Inception (October 13, 2020, the first day of trading on the exchange) to August 31, 2021 was 29.61%. The market price total return from Fund Inception to August 31, 2021 was 29.48%.

(f) 

Annualized.

(g) 

Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

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

 

    24    

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco NASDAQ Future Gen 200 ETF (QQQS)

 

    

For the Period

October 11, 2022(a)

Through

February 28,

2023

        (Unaudited)         

Per Share Operating Performance:

    

Net asset value at beginning of period

     $ 25.00
    

 

 

 

Net investment income(b)

       0.08

Net realized and unrealized gain on investments

       4.11
    

 

 

 

Total from investment operations

       4.19
    

 

 

 

Distributions to shareholders from:

    

Net investment income

       (0.01 )
    

 

 

 

Net asset value at end of period

     $ 29.18
    

 

 

 

Market price at end of period(c)

     $ 29.23
    

 

 

 

Net Asset Value Total Return(d)

       16.77 %(e)

Market Price Total Return(d)

       16.97 %(e)

Ratios/Supplemental Data:

    

Net assets at end of period (000’s omitted)

     $ 5,252

Ratio to average net assets of:

    

Expenses

       0.20 %(f)

Net investment income

       0.76 %(f)

Portfolio turnover rate(g)

       26 %

 

(a) 

Commencement of investment operations.

(b) 

Based on average shares outstanding.

(c) 

The mean between the last bid and ask prices.

(d) 

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

(e) 

The net asset value total return from Fund Inception (October 13, 2022, the first day of trading on the exchange) to February 28, 2023 was 15.20%. The market price total return from Fund Inception to February 28, 2023 was 15.31%.

(f) 

Annualized.

(g) 

Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

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

 

    25    

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco NASDAQ Next Gen 100 ETF (QQQJ)

 

   

Six Months Ended
February 28,

2023

      Year Ended August 31,       For the Period
October 12, 2020(a)
Through
August  31,
    (Unaudited)        2022        2021

Per Share Operating Performance:

                   

Net asset value at beginning of period

    $ 24.77         $ 34.79         $ 26.71
   

 

 

         

 

 

         

 

 

 

Net investment income(b)

      0.09           0.15           0.10

Net realized and unrealized gain (loss) on investments

      0.44           (9.85 )           8.06
   

 

 

         

 

 

         

 

 

 

Total from investment operations

      0.53           (9.70 )           8.16
   

 

 

         

 

 

         

 

 

 

Distributions to shareholders from:

                   

Net investment income

      (0.12 )           (0.11 )           (0.08 )

Net realized gains

      -           (0.21 )           -
   

 

 

         

 

 

         

 

 

 

Total distributions

      (0.12 )           (0.32 )           (0.08 )
   

 

 

         

 

 

         

 

 

 

Net asset value at end of period

    $ 25.18         $ 24.77         $ 34.79
   

 

 

         

 

 

         

 

 

 

Market price at end of period(c)

    $ 25.17         $ 24.80         $ 34.77
   

 

 

         

 

 

         

 

 

 

Net Asset Value Total Return(d)

      2.15 %           (28.06 )%           30.58 %(e)

Market Price Total Return(d)

      1.98 %           (27.93 )%           30.51 %(e)

Ratios/Supplemental Data:

                   

Net assets at end of period (000’s omitted)

    $ 774,835         $ 803,170         $ 1,209,202

Ratio to average net assets of:

                   

Expenses

      0.15 %(f)           0.15 %           0.15 %(f)

Net investment income

      0.75 %(f)           0.50 %           0.35 %(f)

Portfolio turnover rate(g)

      26 %           45 %           29 %

 

(a) 

Commencement of investment operations.

(b) 

Based on average shares outstanding.

(c) 

The mean between the last bid and ask prices.

(d) 

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

(e) 

The net asset value total return from Fund Inception (October 13, 2020, the first day of trading on the exchange) to August 31, 2021 was 30.39%. The market price total return from Fund Inception to August 31, 2021 was 29.93%.

(f) 

Annualized.

(g) 

Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

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

 

    26    

 

 

 

 


 

Notes to Financial Statements

Invesco Exchange-Traded Fund Trust II

February 28, 2023

(Unaudited)

NOTE 1–Organization

Invesco Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following portfolios:

 

  Full Name   

Short Name

  Invesco ESG NASDAQ 100 ETF (QQMG)    “ESG NASDAQ 100 ETF”
  Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)    “ESG NASDAQ Next Gen 100 ETF”
  Invesco NASDAQ 100 ETF (QQQM)    “NASDAQ 100 ETF”
  Invesco NASDAQ Future Gen 200 ETF (QQQS)    “NASDAQ Future Gen 200 ETF”
  Invesco NASDAQ Next Gen 100 ETF (QQQJ)    “NASDAQ Next Gen 100 ETF”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on The Nasdaq Stock Market LLC.

The market price of each Share may differ to some degree from a Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by authorized participants (“APs”), the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”).

 

  Fund   

Underlying Index

  ESG NASDAQ 100 ETF    Nasdaq-100® ESG Index
  ESG NASDAQ Next Gen 100 ETF    Nasdaq Next Generation 100 ESG Index®
  NASDAQ 100 ETF    NASDAQ-100 Index®
  NASDAQ Future Gen 200 ETF    Nasdaq Innovators Completion Cap IndexTM
  NASDAQ Next Gen 100 ETF    NASDAQ Next Generation 100 Index®

NOTE 2–Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

A.

Security Valuation - Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Non-U.S. exchange-traded options are valued at the final settlement price set by the exchange on which they trade. Options not listed on an exchange and swaps generally are valued using pricing provided from independent pricing services.

Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day NAV per share.

Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related

 

    27    

 

 

 

 


 

 

to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Capital Management LLC (the “Adviser”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange (“NYSE”), closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depositary receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, the potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value exchange-traded equity securities. The mean between the last bid and asked prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.

Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of

 

    28    

 

 

 

 


 

 

  withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to a Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of a Fund’s NAV and, accordingly, they reduce a Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

C.

Country Determination - For the purposes of presentation in the Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether each Fund’s Underlying Index has made a country determination and may include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its “country of risk” as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D.

Dividends and Distributions to Shareholders - Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on the ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on the ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

E.

Federal Income Taxes - Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F.

Expenses - Each Fund has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust, or (iii) any other matters that directly benefit the Adviser).

Expenses of the Trust that are excluded from a Fund’s unitary management fee and are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are excluded from a Fund’s unitary management fee and are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

 

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G.

Accounting Estimates - The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H.

Indemnifications - Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Board member who is not an “interested person” (as defined in the 1940 Act) of the Trust (each, an “Independent Trustee”) is also indemnified against certain liabilities arising out of the performance of their duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I.

Securities Lending - Each Fund may participate in securities lending and may loan portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, “affiliated money market funds”) and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. For Funds that participated in securities lending, dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the six months ended February 28, 2023, each Fund (except for NASDAQ Future Gen 200 ETF) had affiliated securities lending transactions with Invesco. Fees paid to Invesco for securities lending agent services, which are included in Securities lending income on the Statements of Operations, were incurred by each applicable Fund as listed below:

 

     Amount  
  ESG NASDAQ 100 ETF      $121  
  ESG NASDAQ Next Gen 100 ETF      12  
  NASDAQ 100 ETF      84,512  
  NASDAQ Next Gen 100 ETF      7,074  

 

J.

Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. Each Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statements of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of

 

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  foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.

Each Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which a Fund invests.

K.

Other Risks

ADR Risk. The Funds may invest in American depositary receipts (“ADRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing the underlying foreign securities directly in their national markets and currencies. ADRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks, because their values depend on the performance of the non-dollar denominated underlying foreign securities. Moreover, ADRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.

Authorized Participant Concentration Risk. Only APs may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower trading volumes or could experience extended market closures or trading halts, may increase the risk that APs may not be able to effectively create or redeem Creation Units or the risk that the Shares may be halted and/or delisted.

Equity Risk. Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that each Fund holds. In addition, equity risk includes the risk that investor sentiment toward one or more industries will become negative, resulting in those investors exiting their investments in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a company’s common stock may fall solely because of factors, such as an increase in production costs that negatively impact other companies in the same region, industry or sector of the market. A company’s common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company’s products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.

ESG Risk. Because ESG NASDAQ 100 ETF and ESG NASDAQ Next Gen 100 ETF evaluate ESG factors to assess and exclude certain investments for non-financial reasons, such Funds may forego some market opportunities available to funds that do not use these factors. The securities of companies that score favorably under a Fund’s ESG scoring methodology may underperform similar companies that do not score as well or may underperform the stock market as a whole. As a result, ESG NASDAQ 100 ETF and ESG NASDAQ Next Gen 100 ETF may underperform funds that do not screen or score companies based on ESG factors or funds that use a different ESG methodology. Information used by a Fund to evaluate such factors may not be readily available, complete or accurate, which could negatively impact the Fund’s ability to apply its methodology, which in turn could negatively impact the Fund’s performance. In addition, a Fund’s assessment of an issuer, based on the issuer’s level of involvement in a particular industry or the issuer’s ESG score, may differ from that of other funds or an investor. As a result, the issuers deemed eligible for inclusion in a Fund’s portfolio may not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.

Foreign Investment Risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping standards, comparable to those applicable to domestic issuers. Foreign securities are also subject to the risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory

 

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taxes, currency blockage and/or transfer restrictions and higher transactional costs. If a Fund invests in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.

Index Risk. Unlike many investment companies, each Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. Additionally, each Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to each Fund’s rebalance schedule.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or industry group. To the extent that each Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the corresponding Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, each Fund may face more risks than if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which each Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.

Market Risk. Securities in each Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in an Underlying Index.

Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflict, acts of terrorism, economic crisis or other events could result in increased premiums or discounts to each Fund’s NAV.

Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Non-Correlation Risk. Each Fund’s return may not match the return of its corresponding Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its corresponding Underlying Index. In addition, the performance of each Fund and its corresponding Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its corresponding Underlying Index resulting from legal restrictions, costs or liquidity constraints.

Non-Diversified Fund Risk. Because each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

COVID-19 Risk. The COVID-19 strain of coronavirus has resulted in instances of market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain its spread have resulted in travel restrictions, disruptions of healthcare systems, business operations (including business closures) and supply chains, layoffs, lower consumer demand and employee availability, and defaults and credit downgrades, among other significant economic impacts that have disrupted global economic activity across many industries. Such economic impacts may exacerbate other pre-existing political, social and economic risks locally or globally and cause general concern and uncertainty. The full economic impact and ongoing effects of COVID-19 (or other future epidemics or pandemics) at the macro-level and on individual businesses are unpredictable and may result in significant and prolonged effects on the Funds’ performance.

NOTE 3–Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

Pursuant to the Investment Advisory Agreement, each Fund accrues daily and pays monthly to the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the

 

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election of any Board member who is an “interested person” of the Trust, or (iii) any other matters that directly benefit the Adviser). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

 

     Unitary Management  Fees
(as a % of average daily net assets)
  ESG NASDAQ 100 ETF        0.20 %
  ESG NASDAQ Next Gen 100 ETF        0.20 %
  NASDAQ 100 ETF        0.15 %
  NASDAQ Future Gen 200 ETF        0.20 %
  NASDAQ Next Gen 100 ETF        0.15 %

Through at least August 31, 2025, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. This waiver does not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date.

For the six months ended February 28, 2023, the Adviser waived fees for each Fund in the following amounts:

 

  ESG NASDAQ 100 ETF    $ 2  
  ESG NASDAQ Next Gen 100 ETF      -  
  NASDAQ 100 ETF      993  
  NASDAQ Future Gen 200 ETF*      1  
  NASDAQ Next Gen 100 ETF      138  

 

*

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into licensing agreements on behalf of each Fund with Nasdaq, Inc. (the, “Licensor”).

Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby BNYM, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

For the six months ended February 28, 2023, the following Funds incurred brokerage commissions with Invesco Capital Markets, Inc. (“ICMI”), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:

 

  ESG NASDAQ 100 ETF    $ 17  
  ESG NASDAQ Next Gen 100 ETF      200  
  NASDAQ 100 ETF      3,058  
  NASDAQ Future Gen 200 ETF*      7,356  
  NASDAQ Next Gen 100 ETF      61,700  

 

*

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

Portfolio transactions with ICMI that have not settled at period-end, if any, are shown in the Statements of Assets and Liabilities under the receivable caption Investments sold - affiliated broker and/or payable caption Investments purchased - affiliated broker.

NOTE 4–Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 –   Prices are determined using quoted prices in an active market for identical assets.

 

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Level 2 –   Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 –   Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of February 28, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Level 1    Level 2    Level 3    Total

  ESG NASDAQ 100 ETF

                   

  Investments in Securities

                   

  Common Stocks & Other Equity Interests

     $ 9,931,378      $ -      $ -      $ 9,931,378

  Money Market Funds

       2,172        208,224        -        210,396
    

 

 

      

 

 

      

 

 

      

 

 

 

  Total Investments

     $ 9,933,550      $ 208,224      $ -      $ 10,141,774
    

 

 

      

 

 

      

 

 

      

 

 

 

  ESG NASDAQ Next Gen 100 ETF

                   

  Investments in Securities

                   

  Common Stocks & Other Equity Interests

     $ 3,317,376      $ -      $ -      $ 3,317,376

  Money Market Funds

       2,460        271,182        -        273,642
    

 

 

      

 

 

      

 

 

      

 

 

 

  Total Investments

     $ 3,319,836      $ 271,182      $ -      $ 3,591,018
    

 

 

      

 

 

      

 

 

      

 

 

 

  NASDAQ 100 ETF

                   

  Investments in Securities

                   

  Common Stocks & Other Equity Interests

     $ 6,972,254,824      $ -      $ -      $ 6,972,254,824

  Money Market Funds

       -        171,419,900        -        171,419,900
    

 

 

      

 

 

      

 

 

      

 

 

 

  Total Investments

     $ 6,972,254,824      $ 171,419,900      $ -      $ 7,143,674,724
    

 

 

      

 

 

      

 

 

      

 

 

 

  NASDAQ Future Gen 200 ETF

                   

  Investments in Securities

                   

  Common Stocks & Other Equity Interests

     $ 5,251,594      $ -      $ 0      $ 5,251,594

  Money Market Funds

       343        -        -        343
    

 

 

      

 

 

      

 

 

      

 

 

 

  Total Investments

     $ 5,251,937      $ -      $ 0      $ 5,251,937
    

 

 

      

 

 

      

 

 

      

 

 

 

  NASDAQ Next Gen 100 ETF

                   

  Investments in Securities

                   

  Common Stocks & Other Equity Interests

     $ 773,828,086      $ -      $ -      $ 773,828,086

  Money Market Funds

       639,770        75,419,802        -        76,059,572
    

 

 

      

 

 

      

 

 

      

 

 

 

  Total Investments

     $ 774,467,856      $ 75,419,802      $ -      $ 849,887,658
    

 

 

      

 

 

      

 

 

      

 

 

 

NOTE 5–Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

 

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The Funds had capital loss carryforwards as of August 31, 2022, as follows:

 

     No expiration         
     Short-Term      Long-Term      Total*  

  ESG NASDAQ 100 ETF

   $ 194,923      $ -      $ 194,923  

  ESG NASDAQ Next Gen 100 ETF

     95,504        -        95,504  

  NASDAQ 100 ETF

     38,924,872        2,961,961        41,886,833  

  NASDAQ Next Gen 100 ETF

     85,555,206        21,972,300        107,527,506  

 

*

Capital loss carryforwards are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 6–Investment Transactions

For the six months ended February 28, 2023, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  

  ESG NASDAQ 100 ETF

   $ 493,321      $ 497,758  

  ESG NASDAQ Next Gen 100 ETF

     641,850        644,261  

  NASDAQ 100 ETF

     423,793,136        413,795,338  

  NASDAQ Future Gen 200 ETF*

     3,830,431        1,208,309  

  NASDAQ Next Gen 100 ETF

     204,276,182        205,627,414  

 

*

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

For the six months ended February 28, 2023, in-kind transactions associated with creations and redemptions were as follows:

 

     In-kind
Purchases
     In-kind
Sales
 

  ESG NASDAQ 100 ETF

   $ -      $ -  

  ESG NASDAQ Next Gen 100 ETF

     448,240        -  

  NASDAQ 100 ETF

     3,356,665,461        1,241,043,324  

  NASDAQ Future Gen 200 ETF*

     2,966,720        882,666  

  NASDAQ Next Gen 100 ETF

     72,508,419        113,093,401  

 

*

For the period October 11, 2022 (commencement of investment operations) through February 28, 2023.

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes. As of February 28, 2023, the aggregate cost of investments, including any derivatives, on a tax basis includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation
     Gross
Unrealized
(Depreciation)
    Net
Unrealized
Appreciation
(Depreciation)
    Cost  

  ESG NASDAQ 100 ETF

   $ 178,435      $ (2,325,293   $ (2,146,858   $ 12,288,632  

  ESG NASDAQ Next Gen 100 ETF

     163,744        (441,459     (277,715     3,868,733  

  NASDAQ 100 ETF

     112,091,525        (1,091,050,499     (978,958,974     8,122,633,698  

  NASDAQ Future Gen 200 ETF*

     835,584        (332,845     502,739       4,749,198  

  NASDAQ Next Gen 100 ETF

     63,385,535        (121,890,019     (58,504,484     908,392,142  

 

*

In the Fund’s initial year of operations, the cost of investments for tax purposes will not reflect any tax adjustments until its fiscal year-end reporting period.

NOTE 7–Trustees’ and Officer’s Fees

The Adviser, as a result of each Fund’s unitary management fee, pays remuneration to the Independent Trustees and an Officer of the Trust on behalf of the Funds. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value

 

    35    

 

 

 

 


 

 

increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

NOTE 8–Capital

Shares are issued and redeemed by each Fund only in Creation Units consisting of a specified number of Shares as set forth in each Fund’s prospectus. Only APs are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the AP or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an AP, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the AP to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the AP’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital. Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

 

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Calculating your ongoing Fund expenses

Example

As a shareholder of a Fund of the Invesco Exchange-Traded Fund Trust II, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust, or (iii) any other matters that directly benefit the Adviser). The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2022 through February 28, 2023.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transaction costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

     Beginning
Account Value
September 1, 2022
        Ending
Account Value
February 28, 2023
       Annualized
Expense Ratio
Based on the
Six-Month Period
       Expenses Paid
During the
Six-Month  Period(1)

  Invesco ESG NASDAQ 100 ETF (QQMG)

                                

  Actual

     $ 1,000.00           $ 1,002.70            0.20 %          $ 0.99

  Hypothetical (5% return before expenses)

       1,000.00             1,023.80            0.20            1.00

  Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)

                                

  Actual

       1,000.00             1,014.20            0.20            1.00

  Hypothetical (5% return before expenses)

       1,000.00             1,023.80            0.20            1.00

  Invesco NASDAQ 100 ETF (QQQM)

                                

  Actual

       1,000.00             985.20            0.15            0.74

  Hypothetical (5% return before expenses)

       1,000.00             1,024.05            0.15            0.75

  Invesco NASDAQ Future Gen 200 ETF (QQQS)

                                

  Actual

       1,000.00             1,167.70 (2)             0.20            0.84 (3) 
               

  Hypothetical (5% return before expenses)

       1,000.00             1,023.80 (2)             0.20            1.00 (3) 

 

     
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Calculating your ongoing Fund expenses–(continued)

    

    

    

    

 

     Beginning
Account Value
September 1, 2022
   Ending
Account Value
February 28, 2023
   Annualized
Expense Ratio
Based on the
Six-Month Period
  Expenses Paid
During the
Six-Month  Period(1)

  Invesco NASDAQ Next Gen 100 ETF (QQQJ)

                  

  Actual

     $ 1,000.00      $ 1,021.50        0.15 %     $ 0.75

  Hypothetical (5% return before expenses)

       1,000.00        1,024.05        0.15       0.75

 

(1) 

Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended February 28, 2023. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

(2) 

The actual ending account value is based on the actual total return of the Fund for the period October 11, 2022 (commencement of investment operations) through February 28, 2023, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

(3) 

Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period October 11, 2022 (commencement of investment operations) to February 28, 2023. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 141/365. Hypothetical expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

 

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Approval of Investment Advisory Contracts

At a meeting held on June 21, 2022, the Board of Trustees of the Invesco Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the Investment Advisory Agreement between Invesco Capital Management LLC (the “Adviser”) and the Trust for Invesco NASDAQ Future Gen 200 ETF (the “Fund”).

The Trustees reviewed information provided by the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the proposed unitary advisory fee for the Fund and comparisons to amounts paid by other comparable registered investment companies, (iii) the extent to which economies of scale may be realized as the Fund grows and whether the fee levels reflect any possible economies of scale for the benefit of Fund shareholders, and (iv) any further benefits to be realized by the Adviser or its affiliates from the Adviser’s relationship with the Fund.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions to be performed by the Adviser for the Fund, including the identity of the persons who will be responsible for the day-to-day management of the Fund, and they considered the quality of services provided by the Adviser to other exchange-traded funds (“ETFs”). The Trustees noted that the portfolio managers of the Fund also manage other ETFs on behalf of the Adviser that are overseen by the Board and that the Board is familiar with the background and experience of the Fund’s portfolio managers. The Trustees also noted other information the Board received and considered at its March 15, 2022 and April 6, 2022 meetings describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. The Trustees reviewed information related to the Adviser’s portfolio transaction policies and procedures, as well as reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.

The Trustees considered the services to be provided by the Adviser in its oversight of the Fund’s administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function for the other ETFs managed by the Adviser and that was expected to be provided for the Fund.

Based on their review, the Trustees concluded that the nature, extent and quality of the services to be provided by the Adviser to the Fund under the Investment Advisory Agreement were expected to be appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on the Fund’s proposed unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. (“Lipper”) databases on the median net expense ratios of comparable passive ETFs, open-end (non-ETF) index funds, open-end (non-ETF) actively managed funds and Adviser-identified select peer funds, as applicable. The Trustees noted that the proposed annual advisory fee to be charged to the Fund was a unitary fee, and that the Adviser has agreed to pay all other operating expenses of the Fund except for brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses, costs incurred in connection with proxies (except certain proxies) and other extraordinary expenses. The Trustees noted the Fund’s proposed unitary advisory fee as compared to the median net expense ratio of its Lipper peer groups and select peer group as shown below:

 

    Passive       Open-End       Open-End        
    ETF       Index Fund       Active Fund       Select
    Peer Group       Peer Group       Peer Group       Peer Group

Fund

 

(Number of Peers)

     

(Number of Peers)

     

(Number of Peers)

     

(Number of Peers)

Invesco NASDAQ Future Gen 200 ETF  

Higher than

median (19)

   

Higher than

median (15)

   

Lower than

median (175)

   

Lower than

median (3)

Based on all of the information provided, the Board concluded that the Fund’s proposed unitary advisory fee was reasonable and appropriate in light of the administrative, operational and management oversight services to be provided by the Adviser and the related costs in providing such services.

In conjunction with their review of the unitary advisory fee, the Trustees considered that the Adviser did not provide a profitability analysis for the Adviser in managing the Fund because the Fund had not yet commenced operations. However, the Trustees noted other information the Board received and considered at its March 15, 2022 and April 6, 2022 meetings regarding the Adviser’s overall profitability from its relationship with other ETFs for which it serves as investment adviser.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale may be realized as the Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the

 

    39    

 

 

 

 


 

Approval of Investment Advisory Contracts–(continued)

    

    

    

    

 

management of the Fund would be enjoyed by the Adviser, but a unitary advisory fee provides a level of certainty in expenses for the Fund. The Trustees considered whether the proposed unitary advisory fee rate for the Fund is reasonable in relation to the proposed services and product strategy of the Fund, and they concluded that the unitary advisory fee was reasonable and appropriate.

Fall-Out Benefits. The Trustees considered that the Adviser identified no additional benefits that it would receive from its relationship with the Fund, and noted that the Adviser will not be a party to any soft dollar, commission recapture or directed brokerage arrangements with respect to the Fund. The Trustees also considered benefits to be received by affiliates of the Adviser that may be directly or indirectly attributed to the Adviser’s relationship with the Fund, including brokerage fees, advisory fees for affiliated money market cash management vehicles and fees as the Fund’s direct securities lending agent. The Trustees also considered that Invesco Distributors, Inc., an affiliate of the Adviser, would serve as the Fund’s distributor and would be paid a distribution fee by the Adviser. The Board concluded that the Fund’s unitary advisory fee was reasonable, taking into account any ancillary benefits to be received by affiliates of the Adviser.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for the Fund. No single factor was determinative in the Board’s analysis.

 

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Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Forms N-PORT are available on the Commission’s website at www.sec.gov.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invesco.com/ETFs.


 

 

 

 

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