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Invesco Annual Report to Shareholders

  August 31, 2023

 

  DWAS   Invesco Dorsey Wright SmallCap Momentum ETF (formerly, Invesco DWA SmallCap Momentum ETF)
  PSCD   Invesco S&P SmallCap Consumer Discretionary ETF
  PSCC   Invesco S&P SmallCap Consumer Staples ETF
  PSCE   Invesco S&P SmallCap Energy ETF
  PSCF   Invesco S&P SmallCap Financials ETF
  PSCH   Invesco S&P SmallCap Health Care ETF
  PSCI   Invesco S&P SmallCap Industrials ETF
  PSCT   Invesco S&P SmallCap Information Technology ETF
  PSCM   Invesco S&P SmallCap Materials ETF
  PSCU   Invesco S&P SmallCap Utilities & Communication Services ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      4  
Liquidity Risk Management Program      24  
Schedules of Investments   

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS)

     25  

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

     28  

Invesco S&P SmallCap Consumer Staples ETF (PSCC)

     30  

Invesco S&P SmallCap Energy ETF (PSCE)

     32  

Invesco S&P SmallCap Financials ETF (PSCF)

     34  

Invesco S&P SmallCap Health Care ETF (PSCH)

     37  

Invesco S&P SmallCap Industrials ETF (PSCI)

     39  

Invesco S&P SmallCap Information Technology ETF (PSCT)

     41  

Invesco S&P SmallCap Materials ETF (PSCM)

     43  

Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU)

     45  
Statements of Assets and Liabilities      48  
Statements of Operations      50  
Statements of Changes in Net Assets      52  
Financial Highlights      56  
Notes to Financial Statements      63  
Report of Independent Registered Public Accounting Firm      75  
Fund Expenses      76  
Tax Information      78  
Trustees and Officers      79  
Approval of Investment Advisory and Sub-Advisory Contracts      89  

 

   2   

 

 

 

 


 

The Market Environment

 

Domestic Equity

At the start of the fiscal year, volatility in the equity markets increased. US equity markets rose in August 2022 until the US Federal Reserve (the Fed) chairman Jerome Powell gave hawkish comments at an economic policy symposium held in Jackson Hole, sparking a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.1 After a continued decline in September 2022, US equity markets rebounded in October and November, despite mixed data on the economy and corporate earnings. However, the Fed’s message of continued rate hikes until data shows inflation meaningfully declining sent markets lower in December. As energy prices declined, the rate of inflation slowed modestly in the fourth quarter of 2022. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target rate by 0.75% in November and by 0.50% in December.1

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the risk of a deeper than expected recession. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread sent investors to safe-haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the federal funds rate by only 0.25% in February of 2023 and again in March.1 The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil.

The US economy and equity markets remained resilient in the second quarter of 2023, as milder inflation data and better-than-expected corporate earnings supported equities, with most major indexes posting gains for the quarter and with some big tech names providing optimistic future guidance. The Consumer Price Index (CPI) rose 4% as of May 31, 2023, the smallest 12-month increase in nearly two years.2 The labor market maintained momentum in the second quarter with unemployment still at historic lows despite a slight uptick at the end of May. Facing persistently strong employment data, the Fed raised the federal funds rate by 0.25% at its May meeting, but investors got a long-awaited “pause” in rate hikes as the Fed left rates unchanged at its June meeting, sending equity

markets higher. However, the Fed raised rates another 0.25% in July, bringing the rate to its highest level since June 2006.1 After two months of gains, equity markets declined in August as a resilient economy complicated the Fed’s efforts to tame inflation. While inflation has slowed from its peak in June 2022, the highest level since 1981, the CPI rose by 0.2% in July and the 12-month headline inflation rate rose to 3.2% from 3% in June.2 At its annual Jackson Hole symposium in August 2023, Fed chair Jerome Powell remarked that while progress has been made, inflation is still too high, and the Fed intends “to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

Despite higher rates and increased market volatility, US stocks for the fiscal year had strong returns of 15.94%, as measured by the S&P 500 Index.3

 

1

Source: US Federal Reserve

2

Source: US Bureau of Labor Statistics

3

Source: Lipper Inc.

 

   3   

 

 

 

 


 

 

DWAS    Management’s Discussion of Fund Performance
   Invesco Dorsey Wright SmallCap Momentum ETF (DWAS)

 

Effective after the close of markets on August 25, 2023, Invesco DWA SmallCap Momentum ETF changed its name to Invesco Dorsey Wright SmallCap Momentum ETF (the “Fund”). As an index fund, the Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® SmallCap Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the “Index Provider”) compiles and maintains the Index, which is composed of approximately 200 securities from an eligible universe of approximately 2,000 securities ranked 1,001 to 3000 by market capitalization within the NASDAQ US Benchmark IndexTM, a float adjusted market capitalization-weighted index designed to track the performance of the U.S. equity market. The Index Provider selects securities for the Index pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength or “momentum” characteristics. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index. The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative market benchmark. After giving each eligible security a momentum score, the Index Provider selects approximately 200 securities with the highest momentum scores for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 6.19%. On a net asset value (“NAV”) basis, the Fund returned 6.21%. During the same time period, the Index returned 6.52%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

For the fiscal year ended August 31, 2023, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and consumer discretionary sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the financials and energy sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Super Micro Computer, Inc., an information technology company (portfolio average weight of 0.71%), and Axcelis Technologies, Inc., an information technology company (portfolio average weight of 0.98%). Positions that detracted most significantly from the Fund’s return included Titan International, Inc., an industrials company (no longer held at fiscal year-end), and Relmada Pharmaceuticals, Inc., a health care company (no longer held at fiscal year-end).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Industrials      25.59  
Health Care      21.92  
Information Technology      14.62  
Consumer Discretionary      13.66  
Financials      7.46  
Energy      5.62  
Consumer Staples      3.88  
Materials      3.78  
Sector Types Each Less Than 3%      3.37  
Money Market Funds Plus Other Assets Less Liabilities      0.10  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Cabaletta Bio, Inc.      1.71  
Carvana Co.      1.64  
MoonLake Immunotherapeutics      1.63  
Northern Oil and Gas, Inc.      1.57  
Axcelis Technologies, Inc.      1.55  
Super Micro Computer, Inc.      1.48  
elf Beauty, Inc.      1.45  
Leonardo DRS, Inc.      1.41  
Destination XL Group, Inc.      1.38  
Transcat, Inc.      1.32  
Total      15.14  

 

*

Excluding money market fund holdings.

 

 

  4  

 


 

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Dorsey Wright® SmallCap Technical Leaders Index     6.52    
11.66

    39.22     7.12     41.02     9.62     150.64       12.05     254.22
Russell 2000® Index     4.65       8.12       26.40       3.14       16.73       7.96       115.10         9.54       175.40  
Fund                    
NAV Return     6.21       11.09       37.09       6.59       37.58       9.05       137.82         11.44       233.40  
Market Price Return     6.19       11.05       36.95       6.58       37.53       9.05       137.83         11.43       232.99  

 

Fund Inception: July 19, 2012

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.60% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  5  

 


 

 

PSCD    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the consumer discretionary sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing consumer goods and services that are cyclical in nature, including, but not limited to, household durables, leisure products and services, apparel and luxury goods, computers and electronics, automobiles and auto components, and hotel and restaurant services. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small- capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 15.56%. On a net asset value (“NAV”) basis, the Fund returned 15.57%. During the same time period, the Index returned 15.14%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period which were offset by proceeds from the securities lending program in which the Fund participates in addition to income received by the Fund on behalf of a class action settlement related to a previously held security.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the specialty retail industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the household durables and specialty retail industries.

For the fiscal year ended August 31, 2023, the household durables industry contributed most significantly to the Fund’s return, followed by the specialty retail and hotels, restaurants & leisure industries, respectively. The broadline retail industry

detracted most significantly from the Fund’s return during the period, followed by the textiles, apparel, & luxury goods industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Meritage Homes Corp., a household durables company (portfolio average weight of 3.19%) and Abercrombie & Fitch Co. Class A, a specialty retail company (portfolio average weight of 1.08%). Positions that detracted most significantly from the Fund’s return included Leslie’s, Inc., a specialty retail company (portfolio average weight of 1.30%), and Wolverine World Wide, Inc., a textiles, apparel & luxury goods company (portfolio average weight of 0.94%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Specialty Retail      34.86  
Household Durables      21.65  
Hotels, Restaurants & Leisure      14.61  
Automobile Components      11.36  
Textiles, Apparel & Luxury Goods      7.14  
Diversified Consumer Services      6.99  
Industry Types Each Less Than 3%      3.27  
Money Market Funds Plus Other Assets Less Liabilities      0.12  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Meritage Homes Corp.      3.66  
Asbury Automotive Group, Inc.      3.55  
Academy Sports & Outdoors, Inc.      3.01  
Advance Auto Parts, Inc.      2.93  
Group 1 Automotive, Inc.      2.68  
Signet Jewelers Ltd.      2.42  
Installed Building Products, Inc.      2.41  
LCI Industries      2.27  
Tri Pointe Homes, Inc.      2.23  
American Eagle Outfitters, Inc.      2.23  
Total      27.39  

 

*

Excluding money market fund holdings.

 

 

  6  

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Consumer Discretionary Index     15.14     13.52     46.31     6.52     37.12     9.52     148.30       11.16     312.53
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     15.57       13.50       46.23       6.43       36.53       9.38       145.18         10.97       303.26  
Market Price Return     15.56       13.48       46.12       6.42       36.52       9.39       145.37         10.97       303.44  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  7  

 


 

 

PSCC    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Consumer Staples ETF (PSCC)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the consumer staples sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing consumer goods and services that have non-cyclical characteristics, including, but not limited to, tobacco, food and beverage, and non-discretionary retail, such as non-durable household goods and personal products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 10.89%. On a net asset value (“NAV”) basis, the Fund returned 10.98%. During the same time period, the Index returned 11.24%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the food products industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the personal care products industry.

For the fiscal year ended August 31, 2023, the personal care products industry contributed most significantly to the Fund’s return, followed by the household products and tobacco industries, respectively. The consumer staples distribution & retail industry detracted most significantly from the Fund’s return during the period, followed by the beverages industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included elf Beauty, Inc., a personal care products company (portfolio average weight of 8.03%), and Inter Parfums, Inc., a personal care products company (portfolio average weight of 4.41%). Positions that detracted most significantly from the Fund’s return included United Natural Foods, Inc., a consumer staples distribution & retail company (portfolio average weight of 4.13%), and Nu Skin Enterprises, Inc. Class A, a personal care products company (portfolio average weight of 2.85%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Food Products      36.50  
Personal Care Products      28.80  
Consumer Staples Distribution & Retail      13.22  
Household Products      10.10  
Beverages      6.12  
Tobacco      5.21  
Money Market Funds Plus Other Assets Less Liabilities      0.05  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
elf Beauty, Inc.      14.12  
Hostess Brands, Inc.      7.60  
Simply Good Foods Co. (The)      6.13  
WD-40 Co.      5.86  
Inter Parfums, Inc.      5.04  
J&J Snack Foods Corp.      4.89  
TreeHouse Foods, Inc.      4.74  
PriceSmart, Inc.      4.01  
Edgewell Personal Care Co.      3.97  
MGP Ingredients, Inc.      3.71  
Total      60.07  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Consumer Staples Index     11.24     14.61     50.53     7.48     43.41     11.53     197.88       13.38     437.71
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     10.98       14.35       49.53       7.23       41.79       11.24       190.15         13.11       420.89  
Market Price Return     10.89       14.23       49.06       7.25       41.87       11.25       190.52         13.11       420.63  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  9  

 


 

 

PSCE    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Energy ETF (PSCE)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the energy sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing, distributing or servicing energy related products and equipment, including relating to oil and gas exploration and production, refining, marketing, storage and transportation; and manufacturing equipment and the production and mining of coal, related products and other consumable fuels related to the generation of energy. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 16.57%. On a net asset value (“NAV”) basis, the Fund returned 16.63%. During the same time period, the Index returned 16.88%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to and selection within the oil, gas & consumable fuels and energy equipment & services industries, respectively.

For the fiscal year ended August 31, 2023, the oil, gas & consumable fuels industry contributed most significantly to the Fund’s return, followed by the energy equipment & services industry. No industry detracted from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included PBDF Energy, Inc. Class A, an oil, gas & consumable fuels company (no longer held at fiscal year-end), and Oceaneering International, Inc., an energy equipment & services company (portfolio average weight of 4.00%). Positions that detracted most significantly from the Fund’s return included SM Energy Co., an oil, gas & consumable fuels company (portfolio average weight of 9.74%), and Vital Energy, Inc., an oil, gas & consumable fuels company (portfolio average weight of 2.22%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Oil, Gas & Consumable Fuels      60.82  
Energy Equipment & Services      38.83  
Money Market Funds Plus Other Assets Less Liabilities      0.35  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
SM Energy Co.      9.49  
Patterson-UTI Energy, Inc.      8.43  
Helmerich & Payne, Inc.      7.63  
Civitas Resources, Inc.      7.51  
California Resources Corp.      7.33  
Northern Oil and Gas, Inc.      6.30  
CONSOL Energy, Inc.      4.81  
Oceaneering International, Inc.      4.27  
Callon Petroleum Co.      3.75  
Par Pacific Holdings, Inc.      3.59  
Total      63.11  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

Invesco S&P SmallCap Energy ETF (PSCE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Energy Index     16.88     49.99     237.44     (5.98 )%      (26.54 )%      (11.52 )%      (70.58 )%        (5.10 )%      (50.38 )% 
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     16.63       49.61       234.84       (6.23     (27.51     (11.74     (71.31       (5.35     (52.13
Market Price Return     16.57       49.29       232.76       (6.23     (27.50     (11.74     (71.30       (5.34     (52.09

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  11  

 


 

 

PSCF    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Financials ETF (PSCF)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the financials and real estate sectors, as defined by the Global Industry Classification Standard (“GICS®”). These companies, which may include real estate investment trusts (“REITs”), are principally engaged in the business of providing financial services and products, including banking, diversified financials, insurance and REITs and real estate management and development. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned (9.21)%. On a net asset value (“NAV”) basis, the Fund returned (9.13)%. During the same time period, the Index returned (8.93)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the banks industry and most underweight in the machinery industry during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the banks industry.

For the fiscal year ended August 31, 2023, the financial services industry contributed most significantly to the Fund’s return, followed by the capital markets and retail REITs industries, respectively. The banks industry detracted most significantly from the Fund’s return during the period, followed by the specialized REITs and insurance industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Radian Group, Inc., a financial services company (portfolio average weight of 0.80%), and American Equity Investment Life Holding Co., an insurance company (portfolio average weight of 1.28%). Positions that detracted most significantly from the Fund’s return included Trupanion, Inc., an insurance company (portfolio average weight of 0.68%), and ServisFirst Bancshares, Inc., a banks company (portfolio average weight of 1.35%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Banks      35.88  
Insurance      9.65  
Retail REITs      7.90  
Financial Services      7.69  
Capital Markets      6.19  
Mortgage REITs      5.83  
Consumer Finance      4.11  
Office REITs      4.03  
Hotel & Resort REITs      3.65  
Real Estate Management & Development      3.50  
Diversified REITs      3.19  
Industry Types Each Less Than 3%      8.32  
Money Market Funds Plus Other Assets Less Liabilities      0.06  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Radian Group, Inc.      1.70  
Phillips Edison & Co., Inc.      1.59  
Mr. Cooper Group, Inc.      1.55  
Essential Properties Realty Trust, Inc.      1.43  
Assured Guaranty Ltd.      1.40  
American Equity Investment Life Holding Co.      1.36  
Moelis & Co., Class A      1.27  
United Community Banks, Inc.      1.25  
Arbor Realty Trust, Inc.      1.16  
LXP Industrial Trust      1.15  
Total      13.86  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

Invesco S&P SmallCap Financials ETF (PSCF) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Financials & Real Estate Index     (8.93 )%      6.09     19.40     (2.02 )%      (9.68 )%      5.77     75.20       7.43     161.22
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     (9.13     5.84       18.58       (2.22     (10.61     5.52       71.17         7.16       152.55  
Market Price Return     (9.21     5.75       18.27       (2.24     (10.73     5.51       70.91         7.15       152.32  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  13  

 


 

 

PSCH    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Health Care ETF (PSCH)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the health care sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing healthcare-related products, facilities, equipment and services, including in areas such as biotechnology, pharmaceuticals, life sciences, medical technology and supplies. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned (11.91)%. On a net asset value (“NAV”) basis, the Fund returned (11.78)%. During the same time period, the Index returned (11.60)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the health care providers & services industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the biotechnology, health care technology and health care providers & services industries, respectively.

For the fiscal year ended August 31, 2023, the pharmaceuticals industry contributed most significantly to the Fund’s return. The biotechnology industry detracted most significantly from the Fund’s return during the period, followed by the health care technology and life sciences tools & services industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Glaukos Corp., a health care equipment & supplies company (portfolio average weight of 2.62%), and Ensign Group, Inc., a health care providers & services company (portfolio average weight of 5.03%). Positions that detracted most significantly from the Fund’s return included Cytokinetics, Inc., a biotechnology company (portfolio average weight of 3.73%), and Owens & Minor, Inc., a health care providers & services company (portfolio average weight of 1.43%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Health Care Providers & Services      31.00  
Health Care Equipment & Supplies      24.59  
Biotechnology      16.98  
Pharmaceuticals      15.85  
Health Care Technology      7.43  
Life Sciences Tools & Services      4.15  
Money Market Funds Plus Other Assets Less Liabilities      0.00  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Ensign Group, Inc. (The)      5.51  
Merit Medical Systems, Inc.      3.69  
Glaukos Corp.      3.56  
AMN Healthcare Services, Inc.      3.44  
CONMED Corp.      3.35  
Cytokinetics, Inc.      3.28  
Select Medical Holdings Corp.      2.99  
Corcept Therapeutics, Inc.      2.91  
Prestige Consumer Healthcare, Inc.      2.85  
Integer Holdings Corp.      2.79  
Total      34.37  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

Invesco S&P SmallCap Health Care ETF (PSCH) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Health Care Index     (11.60 )%      (2.04 )%      (5.99 )%      (2.81 )%      (13.30 )%      10.84     179.99       13.32     433.98
S&P SmallCap 600® Index     5.53       (12.61     42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     (11.78     (2.19     (6.43     (3.02     (14.20     10.59       173.54         13.04       416.50  
Market Price Return     (11.91 )     (2.26     (6.62     (3.07     (14.44     10.57       173.07         13.03       416.30  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  15  

 


 

 

PSCI    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Industrials ETF (PSCI)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the industrials sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing capital goods, such as manufacturing aerospace and defense products, building products, electrical equipment, and machinery; providing commercial and professional services; and transportation such as railroads, air freight and logistics, airlines, and trucking. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 20.66%. On a net asset value (“NAV”) basis, the Fund returned 20.67%. During the same time period, the Index returned 20.99%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the machinery industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocations to the machinery, trading companies & distributors and construction & engineering industries, respectively.

For the fiscal year ended August 31, 2023, the construction & engineering industry contributed most significantly to the Fund’s return, followed by the trading companies & distributors and the electrical equipment industries, respectively. The air freight & logistics industry detracted most significantly from the Fund’s return during the period, followed by the professional services industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Comfort Systems USA, Inc., a construction & engineering company (portfolio average weight of 3.06%), and Boise Cascade Co., a trading companies & distributors company (portfolio average weight of 1.86%). Positions that detracted most significantly from the Fund’s return included Korn Ferry, a professional services company (portfolio average weight of 1.77%), and Resideo Technologies, Inc., a building products company (portfolio average weight of 1.67%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Machinery      30.18  
Commercial Services & Supplies      11.93  
Building Products      11.21  
Construction & Engineering      10.16  
Trading Companies & Distributors      9.95  
Aerospace & Defense      6.81  
Professional Services      6.44  
Ground Transportation      3.81  
Industry Types Each Less Than 3%      9.44  
Money Market Funds Plus Other Assets Less Liabilities      0.07  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Comfort Systems USA, Inc.      3.83  
Applied Industrial Technologies, Inc.      3.46  
Mueller Industries, Inc.      2.55  
Boise Cascade Co.      2.51  
AAON, Inc.      2.35  
Arcosa, Inc.      2.20  
Franklin Electric Co., Inc.      2.18  
Federal Signal Corp.      2.15  
SPX Technologies, Inc.      2.09  
John Bean Technologies Corp.      2.03  
Total      25.35  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco S&P SmallCap Industrials ETF (PSCI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index   Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Industrials Index     20.99     17.57     62.50     7.78     45.45     11.83     205.98       12.36     376.44
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     20.67       17.24       61.16       7.48       43.41       11.54       198.03         12.05       358.92  
Market Price Return     20.66       17.18       60.88       7.47       43.34       11.53       197.73         12.05       359.04  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  17  

 


 

 

PSCT    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Information Technology ETF (PSCT)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the information technology sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing information technology-related products and services, including, but not limited to, developing and producing software; manufacturing communication equipment and products, and electronic equipment and instruments; providing commercial electronic data processing; and manufacturing semiconductors and related products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 17.53%. On a net asset value (“NAV”) basis, the Fund returned 17.59%. During the same time period, the Index returned 17.83%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the electronic equipment, instruments & components industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the semiconductors & semiconductor equipment and the electronic equipment, instruments & components industries, respectively.

For the fiscal year ended August 31, 2023, the semiconductors & semiconductor equipment industry contributed most significantly to the Fund’s return, followed by the electronic equipment,

instruments & components and software industries, respectively. The communications equipment industry detracted most significantly from the Fund’s return during the period, followed by the professional services and IT services industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Axcelis Technologies, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 3.13%), and Rambus, Inc., an semiconductors & semiconductor equipment company (portfolio average weight of 3.95%). Positions that detracted most significantly from the Fund’s return included Rogers Corp., an electronic equipment, instruments & components company (portfolio average weight of 2.54%), and ADTRAN Holdings, Inc., a communications equipment company (portfolio average weight of 0.90%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Semiconductors & Semiconductor Equipment      33.33  
Electronic Equipment, Instruments & Components      32.66  
Software      21.11  
Communications Equipment      10.12  
Industry Types Each Less Than 3%      2.77  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Onto Innovation, Inc.      5.01  
SPS Commerce, Inc.      5.01  
Axcelis Technologies, Inc.      4.63  
Rambus, Inc.      4.53  
Fabrinet      4.30  
Badger Meter, Inc.      3.59  
Insight Enterprises, Inc.      3.41  
Advanced Energy Industries, Inc.      3.27  
Diodes, Inc.      2.76  
Extreme Networks, Inc.      2.61  
Total      39.12  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco S&P SmallCap Information Technology ETF (PSCT) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index   Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Information Technology Index     17.83     17.02     60.25     10.32     63.44     14.71     294.33       14.34     502.18
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     17.59       16.73       59.06       10.03       61.28       14.41       284.31         14.03       480.73  
Market Price Return     17.53       16.70       58.95       10.06       61.50       14.42       284.59         14.04       481.20  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  19  

 


 

 

PSCM    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Materials ETF (PSCM)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the basic materials sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing raw materials, including producing and manufacturing chemical products; manufacturing construction materials, containers, and packaging; mining metals and the production of related products; and manufacturing paper and forest products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned 9.74%. On a net asset value (“NAV”) basis, the Fund returned 9.69%. During the same time period, the Index returned 9.97%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the chemicals industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the metals & mining industry.

For the fiscal year ended August 31, 2023, the metals & mining industry contributed most significantly to the Fund’s return, followed by the containers & packaging industry. The chemicals industry detracted most significantly from the Fund’s return during the period, followed by the paper & forest products industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included ATI, Inc., a metals & mining company (portfolio average weight of 8.91%), and Carpenter Technology Corp., a metals & mining company (portfolio average weight of 4.22%). Positions that detracted most significantly from the Fund’s return included Livent Corp., a chemicals company (portfolio average weight of 8.73%), and Trinseo PLC, a chemicals company (portfolio average weight of 1.36%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Chemicals      52.36  
Metals & Mining      35.56  
Containers & Packaging      7.21  
Paper & Forest Products      4.54  
Money Market Funds Plus Other Assets Less Liabilities      0.33  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
ATI, Inc.      11.10  
Balchem Corp.      8.62  
H.B. Fuller Co.      7.44  
Livent Corp.      7.35  
O-I Glass, Inc.      5.87  
Carpenter Technology Corp.      5.73  
Innospec, Inc.      4.72  
Materion Corp.      4.34  
Quaker Chemical Corp.      4.12  
Warrior Met Coal, Inc.      3.98  
Total      63.27  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco S&P SmallCap Materials ETF (PSCM) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index   Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Materials Index     9.97     19.06     68.77     5.74     32.19     7.98     115.40       8.91     213.64
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     9.69       18.80       67.66       5.56       31.05       7.74       110.69         8.65       203.77  
Market Price Return     9.74       18.94       68.25       5.56       31.05       7.74       110.72         8.65       203.76  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  21  

 


 

 

PSCU    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU)

 

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

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the utilities and communication services sectors, as defined by the Global Industry Classification Standard (“GICS®”). The utilities companies are principally engaged in providing either energy, water, electric or natural gas utilities. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater. The communication services sector includes companies that facilitate communication or offer related content and information through various types of media and is comprised of companies from the following industries: diversified telecommunications services; wireless telecommunication services; media; entertainment; and interactive media and services. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small- capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2023, on a market price basis, the Fund returned (7.88)%. On a net asset value (“NAV”) basis, the Fund returned (7.87)%. During the same time period, the Index returned (7.62)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned 5.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the water utilities industry and most underweight in the banks industry during the fiscal year ended August 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocations to the media and water utilities industries, respectively.

For the fiscal year ended August 31, 2023, the electric utilities industry contributed most significantly to the Fund’s return, followed by the interactive media & services and the wireless telecommunication services industries, respectively. The media industry detracted most significantly from the Fund’s return during the period, followed by the water utilities and entertainment industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2023, included Cogent Communications Holdings, Inc., a diversified telecommunication services company (portfolio average weight of 6.12%), and Yelp Inc., an interactive media & services company (portfolio average weight of 5.44%). Positions that detracted most significantly from the Fund’s return included TechTarget, Inc., a media company (portfolio average weight of 2.92%), and Lumen Technologies, Inc., a diversified telecommunication services company (portfolio average weight of 2.07%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Water Utilities      19.05  
Interactive Media & Services      15.25  
Media      13.74  
Entertainment      11.17  
Diversified Telecommunication Services      10.90  
Wireless Telecommunication Services      8.44  
Electric Utilities      7.22  
Gas Utilities      7.09  
Multi-Utilities      6.96  
Money Market Funds Plus Other Assets Less Liabilities      0.18  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2023
 
Security   
Otter Tail Corp.      7.22  
Madison Square Garden Sports Corp., Class A      6.67  
American States Water Co.      6.55  
Cogent Communications Holdings, Inc.      6.38  
Yelp, Inc.      6.20  
California Water Service Group      5.92  
Avista Corp.      5.30  
Telephone & Data Systems, Inc.      4.47  
Chesapeake Utilities Corp.      4.12  
SJW Group      3.78  
Total      56.61  

 

*

Excluding money market fund holdings.

 

 

  22  

 


 

Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of August 31, 2023

 

    1 Year    

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   Average
Annualized
    Cumulative  
S&P SmallCap 600® Capped Utilities & Communication Services Index     (7.62 )%      4.85     15.27     1.21     6.22     8.32     122.43       8.90     213.33
S&P SmallCap 600® Index     5.53       12.61       42.79       3.82       20.62       9.48       147.34         10.85       297.31  
Fund                    
NAV Return     (7.87     4.55       14.28       0.93       4.71       8.06       117.11         8.62       202.63  
Market Price Return     (7.88     4.50       14.12       0.92       4.66       8.07       117.27         8.62       202.61  

 

Fund Inception: April 7, 2010

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

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  23  

 


 

Liquidity Risk Management Program

 

 

The Securities and Exchange Commission (“SEC”) has adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) in order to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders. The Funds have adopted and implemented a liquidity risk management program in accordance with the Liquidity Rule (the “Program”). The Program is reasonably designed to assess and manage the Funds’ liquidity risk, which is the risk that the Funds could not meet redemption requests without significant dilution of remaining investors’ interests in the Funds. The Board of Trustees of the Funds (the “Board”) has appointed Invesco Capital Management LLC (“Invesco”), the Funds’ investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco and its affiliates.

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

At a meeting held on March 24, 2023, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the Russia-Ukraine War, and resulting sanctions, inflation concerns and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

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

 

   

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

 

   

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

 

   

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

 

   

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

 

   

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

 

   24   

 

 

 

 


 

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS)

August 31, 2023

Schedule of Investments(a)

 

      Shares         Value    

Common Stocks & Other Equity Interests-99.90%

 

Communication Services-0.89%

     

Cars.com, Inc.(b)(c)

     136,993      $ 2,560,399  

Gogo, Inc.(b)(c)

     153,936        1,747,174  

Integral Ad Science Holding Corp.(b)(c)

     144,878        2,067,409  
     

 

 

 
        6,374,982  
     

 

 

 

Consumer Discretionary-13.66%

     

Abercrombie & Fitch Co., Class A(b)

     71,004        3,816,465  

Acushnet Holdings Corp.

     51,007        2,986,460  

Adient PLC(b)

     69,140        2,708,214  

Carvana Co.(b)(c)

     233,321        11,747,712  

Cooper-Standard Holdings, Inc.(b)(c)

     201,929        3,016,819  

Cricut, Inc., Class A(c)

     163,193        1,543,806  

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

     88,656        3,481,521  

Destination XL Group, Inc.(b)

     2,165,485        9,874,612  

Dream Finders Homes, Inc., Class A(b)(c)

     105,941        3,053,220  

Duolingo, Inc.(b)

     17,296        2,545,279  

Garrett Motion, Inc. (Switzerland)(b)

     459,964        3,569,321  

Golden Entertainment, Inc.

     134,676        4,903,553  

Green Brick Partners, Inc.(b)

     89,800        4,441,508  

Group 1 Automotive, Inc.

     13,355        3,531,329  

Hovnanian Enterprises, Inc., Class A(b)

     26,219        3,115,866  

Kura Sushi USA, Inc., Class A(b)(c)

     29,255        2,556,009  

MasterCraft Boat Holdings, Inc.(b)

     94,517        2,056,690  

Meritage Homes Corp.(c)

     19,377        2,694,178  

Modine Manufacturing Co.(b)

     182,099        8,666,091  

Red Rock Resorts, Inc., Class A(c)

     150,207        6,598,594  

SeaWorld Entertainment, Inc.(b)(c)

     57,583        2,804,292  

Taylor Morrison Home Corp., Class A(b)

     61,396        2,910,170  

Visteon Corp.(b)

     17,716        2,467,307  

Winmark Corp.

     7,288        2,773,303  
     

 

 

 
        97,862,319  
     

 

 

 

Consumer Staples-3.88%

     

Andersons, Inc. (The)

     57,870        2,972,203  

Coca-Cola Consolidated, Inc.

     4,075        2,848,018  

elf Beauty, Inc.(b)

     74,785        10,373,427  

Hostess Brands, Inc.(b)

     100,849        2,872,180  

Inter Parfums, Inc.(c)

     19,155        2,676,528  

MGP Ingredients, Inc.(c)

     25,623        3,072,198  

Oil-Dri Corp.of America

     44,813        3,020,396  
     

 

 

 
        27,834,950  
     

 

 

 

Energy-5.62%

     

Aemetis, Inc.(b)(c)

     432,111        2,164,876  

Archrock, Inc.

     256,176        3,276,491  

Denbury, Inc.(b)

     41,276        3,780,056  

Diamond Offshore Drilling, Inc.(b)

     244,627        3,637,604  

Dorian LPG Ltd.

     106,132        2,738,206  

Green Plains, Inc.(b)(c)

     120,475        3,739,544  

Northern Oil and Gas, Inc.(c)

     268,382        11,226,419  

Tidewater, Inc.(b)

     87,509        5,690,710  

Weatherford International PLC(b)

     44,983        3,981,895  
     

 

 

 
        40,235,801  
     

 

 

 

Financials-7.46%

     

Brightsphere Investment Group, Inc.(c)

     121,963        2,525,854  

Cantaloupe, Inc.(b)

     337,571        2,673,562  

Donnelley Financial Solutions, Inc.(b)

     144,674        7,128,088  
      Shares         Value    

Financials-(continued)

     

Enova International, Inc.(b)(c)

     51,201      $ 2,583,091  

Federal Agricultural Mortgage Corp., Class C

     17,710        2,980,947  

International Money Express, Inc.(b)

     105,640        1,827,572  

Mr. Cooper Group, Inc.(b)

     104,358        5,912,924  

National Western Life Group, Inc., Class A(c)

     6,626        3,011,782  

Northeast Bank

     62,884        2,671,941  

OFG Bancorp

     98,563        2,972,660  

Oscar Health, Inc., Class A(b)

     357,235        2,239,863  

PacWest Bancorp

     336,059        2,671,669  

Pathward Financial, Inc.

     54,050        2,663,044  

Piper Sandler Cos

     19,078        2,842,240  

Tiptree, Inc.

     193,485        3,409,206  

Upstart Holdings, Inc.(b)(c)

     77,112        2,480,693  

Victory Capital Holdings, Inc., Class A

     84,018        2,891,900  
     

 

 

 
        53,487,036  
     

 

 

 

Health Care-21.92%

     

10X Genomics, Inc., Class A(b)(c)

     44,844        2,325,161  

4D Molecular Therapeutics, Inc.(b)(c)

     131,614        2,142,676  

89bio, Inc.(b)(c)

     463,948        7,952,069  

AirSculpt Technologies, Inc.(b)(c)

     336,711        2,585,940  

Akero Therapeutics, Inc.(b)(c)

     135,200        6,709,976  

Aldeyra Therapeutics, Inc.(b)(c)

     321,623        2,399,308  

Alphatec Holdings, Inc.(b)(c)

     165,345        2,703,391  

ANI Pharmaceuticals, Inc.(b)(c)

     48,811        3,142,940  

Avita Medical, Inc.(b)(c)

     167,576        2,731,489  

Axsome Therapeutics, Inc.(b)(c)

     32,813        2,651,290  

Biohaven Ltd.(b)(c)

     111,102        2,032,056  

Biomea Fusion, Inc.(b)(c)

     126,333        2,131,238  

Cabaletta Bio, Inc.(b)(c)

     865,825        12,260,082  

CVRx, Inc.(b)

     171,954        2,983,402  

Disc Medicine, Inc.(b)

     61,610        3,262,249  

Ideaya Biosciences, Inc.(b)(c)

     104,949        3,081,303  

ImmunoGen, Inc.(b)

     217,217        3,440,717  

Krystal Biotech, Inc.(b)(c)

     23,933        2,979,180  

LeMaitre Vascular, Inc.

     38,275        2,212,678  

Liquidia Corp.(b)(c)

     287,542        1,975,414  

MacroGenics, Inc.(b)(c)

     451,903        2,105,868  

Marinus Pharmaceuticals, Inc.(b)(c)

     252,549        1,795,623  

Merit Medical Systems, Inc.(b)

     32,713        2,135,505  

MiMedx Group, Inc.(b)(c)

     439,431        3,260,578  

MoonLake Immunotherapeutics(b)(c)

     203,114        11,693,273  

Morphic Holding, Inc.(b)(c)

     43,104        2,374,168  

Nuvalent, Inc., Class A(b)(c)

     102,915        4,689,837  

Olema Pharmaceuticals, Inc.(b)

     334,398        3,394,140  

ORIC Pharmaceuticals, Inc.(b)

     396,718        3,554,593  

Pacific Biosciences of California, Inc.(b)(c)

     199,918        2,255,075  

Protagonist Therapeutics, Inc.(b)

     107,771        2,136,021  

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

     37,300        1,970,186  

Quanterix Corp.(b)

     112,856        3,024,541  

Reata Pharmaceuticals, Inc., Class A(b)(c)

     45,410        7,674,290  

Rocket Pharmaceuticals, Inc.(b)(c)

     115,472        1,807,137  

RxSight, Inc.(b)

     106,817        3,098,761  

Schrodinger, Inc.(b)(c)

     53,968        1,990,880  

SI-BONE, Inc.(b)

     91,033        2,082,835  

Tabula Rasa HealthCare, Inc.(b)(c)

     362,648        3,724,395  

 

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

 

   25   

 

 

 

 


 

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS)–(continued)

August 31, 2023

 

 

      Shares         Value    

Health Care-(continued)

     

Tactile Systems Technology, Inc.(b)(c)

     114,924      $ 2,177,810  

Tenaya Therapeutics, Inc.(b)(c)

     470,771        1,821,884  

UFP Technologies, Inc.(b)(c)

     34,771        6,109,612  

Vaxcyte, Inc.(b)(c)

     58,020        3,012,398  

Vera Therapeutics, Inc.(b)(c)

     171,805        3,039,230  

Voyager Therapeutics, Inc.(b)(c)

     187,868        1,882,437  

Zimvie, Inc.(b)

     216,224        2,551,443  
     

 

 

 
        157,065,079  
     

 

 

 

Industrials-25.59%

     

AAR Corp.(b)

     46,696        2,876,474  

ACV Auctions, Inc., Class A(b)(c)

     145,478        2,445,485  

Alamo Group, Inc.

     22,291        3,826,250  

Albany International Corp., Class A

     28,518        2,644,189  

ArcBest Corp.

     32,546        3,436,532  

Array Technologies, Inc.(b)(c)

     124,404        3,093,928  

Astronics Corp.(b)

     140,764        2,467,593  

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

     37,354        2,982,717  

Boise Cascade Co.

     32,792        3,586,461  

Bowman Consulting Group Ltd.(b)

     77,670        2,293,595  

Casella Waste Systems, Inc., Class A(b)(c)

     119,227        9,391,511  

CBIZ, Inc.(b)

     68,472        3,841,964  

Cimpress PLC (Ireland)(b)(c)

     47,927        3,096,563  

Comfort Systems USA, Inc.

     18,448        3,404,947  

Commercial Vehicle Group, Inc.(b)

     261,274        2,406,334  

Covenant Logistics Group, Inc., Class A

     73,323        3,605,292  

CSW Industrials, Inc.

     17,426        3,130,232  

Energy Recovery, Inc.(b)

     95,048        2,583,405  

EnPro Industries, Inc.

     20,383        2,780,037  

Enviri Corp.(b)

     285,928        2,130,164  

Federal Signal Corp.

     44,367        2,704,169  

Fluence Energy, Inc.(b)(c)

     122,053        3,216,097  

Franklin Electric Co., Inc.

     25,765        2,491,733  

GMS, Inc.(b)

     44,957        3,117,318  

Granite Construction, Inc.(c)

     66,045        2,726,998  

Griffon Corp.

     67,004        2,805,457  

Heritage-Crystal Clean, Inc.(b)

     70,433        3,176,528  

Huron Consulting Group, Inc.(b)(c)

     30,790        3,077,461  

Hyster-Yale Materials Handling, Inc.

     49,159        2,245,092  

ICF International, Inc.

     21,242        2,868,945  

IES Holdings, Inc.(b)

     48,893        3,665,997  

Insperity, Inc.

     21,779        2,206,866  

Joby Aviation, Inc.(b)(c)

     351,747        2,620,515  

Kadant, Inc.(c)

     26,907        5,912,544  

Leonardo DRS, Inc.(b)(c)

     588,171        10,069,488  

Mayville Engineering Co., Inc.(b)

     172,080        2,020,219  

McGrath RentCorp(c)

     27,709        2,801,380  

Mueller Industries, Inc.(c)

     32,118        2,478,225  

MYR Group, Inc.(b)

     25,631        3,641,396  

Pangaea Logistics Solutions Ltd.

     377,984        2,131,830  

Powell Industries, Inc.

     47,862        4,018,972  

Preformed Line Products Co.

     16,543        2,803,873  

Rush Enterprises, Inc., Class A

     66,177        2,740,390  

SkyWest, Inc.(b)

     65,373        2,948,322  

SPX Technologies, Inc.(b)(c)

     75,910        5,998,408  

Standex International Corp.

     18,496        2,841,540  

Sterling Infrastructure, Inc.(b)

     73,261        6,063,080  

Symbotic, Inc.(b)(c)

     94,954        3,968,128  

Terex Corp.(c)

     45,335        2,747,754  

Thermon Group Holdings, Inc.(b)

     103,027        2,831,182  
      Shares         Value    

Industrials-(continued)

     

Transcat, Inc.(b)(c)

     92,890      $ 9,471,064  

VSE Corp.

     48,245        2,737,904  

Wabash National Corp.(c)

     96,377        2,173,301  
     

 

 

 
        183,345,849  
     

 

 

 

Information Technology-14.62%

     

Aehr Test Systems(b)(c)

     111,760        5,700,878  

Altair Engineering, Inc., Class A(b)(c)

     34,753        2,310,379  

Axcelis Technologies, Inc.(b)(c)

     57,689        11,084,941  

Badger Meter, Inc.

     22,356        3,712,885  

Bel Fuse, Inc., Class B

     103,301        5,402,642  

Belden, Inc.

     27,458        2,578,306  

C3.ai, Inc., Class A(b)(c)

     60,245        1,868,800  

Daktronics, Inc.(b)

     467,229        3,906,035  

Digi International, Inc.(b)(c)

     70,443        2,351,387  

Diodes, Inc.(b)

     29,066        2,379,052  

Evolv Technologies Holdings, Inc.(b)

     427,516        2,988,337  

Extreme Networks, Inc.(b)

     314,886        8,643,621  

Harmonic, Inc.(b)(c)

     146,176        1,561,160  

Impinj, Inc.(b)(c)

     37,588        2,502,233  

Insight Enterprises, Inc.(b)(c)

     24,930        3,991,044  

Intapp, Inc.(b)

     57,610        2,109,102  

Marathon Digital Holdings, Inc.(b)(c)

     229,646        2,886,650  

Napco Security Technologies, Inc.

     74,658        1,850,025  

Navitas Semiconductor Corp.(b)

     284,929        2,515,923  

Onto Innovation, Inc.(b)

     40,559        5,636,890  

PDF Solutions, Inc.(b)

     87,618        3,184,038  

Photronics, Inc.(b)

     107,033        2,543,104  

Rambus, Inc.(b)

     86,948        4,909,954  

Samsara, Inc., Class A(b)

     94,381        2,582,264  

Super Micro Computer, Inc.(b)(c)

     38,649        10,631,567  

Weave Communications, Inc.(b)(c)

     302,782        3,091,404  

Yext, Inc.(b)

     210,815        1,846,739  
     

 

 

 
        104,769,360  
     

 

 

 

Materials-3.78%

     

AdvanSix, Inc.

     73,971        2,446,961  

Hawkins, Inc.

     52,980        3,294,826  

Haynes International, Inc.

     51,675        2,522,257  

Materion Corp.

     23,488        2,555,259  

O-I Glass, Inc.(b)

     123,578        2,454,259  

Ryerson Holding Corp.(c)

     183,949        5,728,172  

Summit Materials, Inc., Class A(b)

     75,831        2,836,838  

TimkenSteel Corp.(b)(c)

     241,050        5,281,405  
     

 

 

 
        27,119,977  
     

 

 

 

Real Estate-1.22%

     

Redfin Corp.(b)(c)

     245,644        2,338,531  

St. Joe Co. (The)

     56,345        3,478,740  

Tanger Factory Outlet Centers, Inc.(c)

     124,494        2,894,486  
     

 

 

 
        8,711,757  
     

 

 

 

Utilities-1.26%

     

Consolidated Water Co. Ltd. (Cayman Islands)(c)

     110,247        2,936,980  

Genie Energy Ltd., Class B

     216,807        3,319,315  

Otter Tail Corp.(c)

     34,068        2,806,181  
     

 

 

 
        9,062,476  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $615,735,626)

 

     715,869,586  
     

 

 

 

 

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

 

   26   

 

 

 

 


 

Invesco Dorsey Wright SmallCap Momentum ETF (DWAS)–(continued)

August 31, 2023

 

      Shares         Value    

Money Market Funds-0.07%

     

Invesco Government & Agency Portfolio, Institutional Class, 5.25%(d)(e)
(Cost $500,813)

     500,813      $ 500,813  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.97%
(Cost $616,236,439)

 

     716,370,399  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-22.85%

     

Invesco Private Government Fund,
5.30%(d)(e)(f)

     45,686,296        45,686,296  
      Shares         Value    

Money Market Funds-(continued)

     

Invesco Private Prime Fund, 5.51%(d)(e)(f)

     118,020,339      $ 118,020,339  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $163,705,375)

        163,706,635  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-122.82%
(Cost $779,941,814)

 

     880,077,034  

OTHER ASSETS LESS LIABILITIES-(22.82)%

 

     (163,494,179
     

 

 

 

NET ASSETS-100.00%

 

   $ 716,582,855  
     

 

 

 

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 August 31, 2023.

(d) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31,  2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
August 31,  2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 202,856      $ 10,697,314      $ (10,399,357 )     $ -     $ -     $ 500,813      $ 10,842
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        25,614,890        258,424,628        (238,353,222 )       -       -       45,686,296        1,346,534 *
Invesco Private Prime Fund        68,444,203        497,427,030        (447,840,393 )       (3,228 )       (7,273 )       118,020,339        3,618,717 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 94,261,949      $ 766,548,972      $ (696,592,972 )     $ (3,228 )     $ (7,273 )     $ 164,207,448      $ 4,976,093
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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 August 31, 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.

 

   27   

 

 

 

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

August 31, 2023

Schedule of Investments(a)

 

       Shares          Value    

Common Stocks & Other Equity Interests-99.88%

 

Automobile Components-11.36%

     

American Axle & Manufacturing Holdings, Inc.(b)

     22,390      $ 169,045  

Dana, Inc.(c)

     24,578        395,952  

Dorman Products, Inc.(b)(c)

     5,419        447,122  

Gentherm, Inc.(b)

     6,339        381,671  

LCI Industries

     4,841        606,480  

Patrick Industries, Inc.

     4,057        339,327  

Phinia, Inc.(b)(c)

     8,969        249,338  

Standard Motor Products, Inc.

     3,607        133,567  

XPEL, Inc.(b)(c)(d)

     3,752        312,542  
     

 

 

 
        3,035,044  
     

 

 

 

Automobiles-1.42%

     

Winnebago Industries, Inc.(c)

     5,846        379,113  
     

 

 

 

Diversified Consumer Services-6.99%

     

Adtalem Global Education, Inc.(b)

     8,344        365,885  

Frontdoor, Inc.(b)

     15,638        513,239  

Mister Car Wash, Inc.(b)(c)

     15,349        111,127  

Perdoceo Education Corp.

     12,911        213,935  

Strategic Education, Inc.

     4,282        331,855  

Stride, Inc.(b)(c)

     7,823        332,399  
     

 

 

 
        1,868,440  
     

 

 

 

Hotels, Restaurants & Leisure-14.61%

     

BJ’s Restaurants, Inc.(b)(c)

     4,504        132,463  

Bloomin’ Brands, Inc.

     16,703        468,686  

Brinker International, Inc.(b)(c)

     8,476        277,420  

Cheesecake Factory, Inc. (The)(c)

     9,138        291,045  

Chuy’s Holdings, Inc.(b)(c)

     3,467        132,093  

Cracker Barrel Old Country Store, Inc.

     4,238        349,338  

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

     7,662        300,887  

Dine Brands Global, Inc.(c)

     2,998        164,230  

Golden Entertainment, Inc.

     4,249        154,706  

Jack in the Box, Inc.

     3,941        316,738  

Monarch Casino & Resort, Inc.

     2,563        172,746  

Sabre Corp.(b)(c)

     63,536        317,680  

Shake Shack, Inc., Class A(b)

     7,163        501,410  

Six Flags Entertainment Corp.(b)(c)

     14,182        325,619  
     

 

 

 
        3,905,061  
     

 

 

 

Household Durables-21.65%

     

Cavco Industries, Inc.(b)

     1,547        432,417  

Century Communities, Inc.

     5,453        404,885  

Ethan Allen Interiors, Inc.(c)

     4,367        137,037  

Green Brick Partners, Inc.(b)

     5,138        254,126  

Installed Building Products, Inc.

     4,457        645,062  

iRobot Corp.(b)(c)

     5,211        202,656  

La-Z-Boy, Inc.

     8,254        254,636  

LGI Homes, Inc.(b)(c)

     3,962        487,722  

M.D.C. Holdings, Inc.(c)

     11,193        531,108  

M/I Homes, Inc.(b)(c)

     5,324        522,710  

Meritage Homes Corp.

     7,035        978,146  

Sonos, Inc.(b)(c)

     24,553        338,340  

Tri Pointe Homes, Inc.(b)(c)

     19,153        595,658  
     

 

 

 
        5,784,503  
     

 

 

 
       Shares          Value    

Leisure Products-1.85%

     

Sturm Ruger & Co., Inc.

     3,389      $ 174,805  

Vista Outdoor, Inc.(b)(c)

     10,923        319,498  
     

 

 

 
        494,303  
     

 

 

 

Specialty Retail-34.86%

     

Aaron’s Co., Inc. (The)

     5,914        71,382  

Abercrombie & Fitch Co., Class A(b)(c)

     9,577        514,764  

Academy Sports & Outdoors, Inc.(c)

     14,751        804,962  

Advance Auto Parts, Inc.(c)

     11,372        782,621  

American Eagle Outfitters, Inc.(c)

     35,116        595,567  

America’s Car-Mart, Inc.(b)(c)

     1,109        123,443  

Asbury Automotive Group, Inc.(b)(c)

     4,120        947,600  

Boot Barn Holdings, Inc.(b)(c)

     5,705        523,434  

Buckle, Inc. (The)(c)

     5,696        208,132  

Caleres, Inc.

     6,946        199,142  

Chico’s FAS, Inc.(b)(c)

     23,619        121,165  

Designer Brands, Inc., Class A(c)

     9,672        101,653  

Group 1 Automotive, Inc.

     2,706        715,520  

Guess?, Inc.

     5,727        137,792  

Haverty Furniture Cos., Inc., (Acquired 06/25/2020 - 06/22/2023; Cost $75,090)(e)

     2,551        79,846  

Hibbett, Inc.(c)

     2,439        112,950  

Leslie’s, Inc.(b)(c)

     28,493        178,366  

MarineMax, Inc.(b)(c)

     4,182        139,135  

Monro, Inc.(c)

     6,007        196,669  

National Vision Holdings, Inc.(b)(c)

     14,941        273,570  

ODP Corp. (The)(b)(c)

     6,499        320,531  

Sally Beauty Holdings, Inc.(b)(c)

     20,579        209,083  

Shoe Carnival, Inc.(c)

     3,243        75,010  

Signet Jewelers Ltd.(c)

     8,634        647,550  

Sleep Number Corp.(b)(c)

     4,245        108,587  

Sonic Automotive, Inc., Class A(c)

     3,044        162,306  

Upbound Group, Inc.(c)

     9,632        294,932  

Urban Outfitters, Inc.(b)

     11,516        382,446  

Victoria’s Secret & Co.(b)(c)

     14,987        287,451  
     

 

 

 
        9,315,609  
     

 

 

 

Textiles, Apparel & Luxury Goods-7.14%

 

  

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

     7,851        155,842  

Hanesbrands, Inc.(c)

     66,880        351,120  

Kontoor Brands, Inc.

     9,549        437,249  

Movado Group, Inc.

     2,988        81,722  

Oxford Industries, Inc.(c)

     2,839        286,711  

Steven Madden Ltd.(c)

     13,671        471,649  

Wolverine World Wide, Inc.(c)

     15,199        122,808  
     

 

 

 
        1,907,101  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $30,824,318)

 

     26,689,174  
     

 

 

 

Money Market Funds-0.06%

     

Invesco Government & Agency Portfolio, Institutional Class, 5.25%(f)(g)
(Cost $16,834)

     16,834        16,834  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.94%
(Cost $30,841,152)

 

     26,706,008  
     

 

 

 

 

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

 

   28   

 

 

 

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)–(continued)

August 31, 2023

 

       Shares          Value    
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-30.27%

     

Invesco Private Government Fund,
5.30%(f)(g)(h)

     2,264,482      $ 2,264,482  

Invesco Private Prime Fund, 5.51%(f)(g)(h)

     5,822,958        5,822,958  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $8,087,211)

 

     8,087,440  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-130.21%
(Cost $38,928,363)

 

     34,793,448  

OTHER ASSETS LESS LIABILITIES-(30.21)%

 

     (8,072,659
     

 

 

 

NET ASSETS-100.00%

      $ 26,720,789  
     

 

 

 

 

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 August 31, 2023.

(d)

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at August 31, 2023 represented 1.17% of the Fund’s Net Assets.

(e) 

Restricted security. The value of this security at August 31, 2023 represented less than 1% of the Fund’s Net Assets.

(f) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
August 31, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 18,475      $ 576,539      $ (578,180 )     $ -     $ -     $ 16,834      $ 462
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        2,330,277        11,218,547        (11,284,342 )       -       -       2,264,482        102,326 *
Invesco Private Prime Fund        5,992,142        14,812,524        (14,981,282 )       (205 )       (221 )       5,822,958        275,123 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 8,340,894      $ 26,607,610      $ (26,843,804 )     $ (205 )     $ (221 )     $ 8,104,274      $ 377,911
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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.

 

(g) 

The rate shown is the 7-day SEC standardized yield as of August 31, 2023.

(h) 

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.

 

   29   

 

 

 

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC)

August 31, 2023

Schedule of Investments(a)

 

       Shares          Value    

Common Stocks & Other Equity Interests-99.95%

 

Beverages-6.12%

     

MGP Ingredients, Inc.(b)

     27,468      $ 3,293,413  

National Beverage Corp.(b)(c)

     41,621        2,135,574  
     

 

 

 
        5,428,987  
     

 

 

 

Consumer Staples Distribution & Retail-13.22%

 

Andersons, Inc. (The)

     56,116        2,882,118  

Chefs’ Warehouse, Inc. (The)(b)(c)

     62,663        1,788,402  

PriceSmart, Inc.

     44,762        3,557,684  

SpartanNash Co.

     62,532        1,360,696  

United Natural Foods, Inc.(c)

     105,913        2,132,028  
     

 

 

 
        11,720,928  
     

 

 

 

Food Products-36.50%

     

B&G Foods, Inc.(b)

     128,577        1,644,500  

Calavo Growers, Inc.(b)

     31,591        1,041,239  

Cal-Maine Foods, Inc.(b)

     67,747        3,237,629  

Fresh Del Monte Produce, Inc.

     54,698        1,397,534  

Hain Celestial Group, Inc. (The)(b)(c)

     159,261        1,686,574  

Hostess Brands, Inc.(c)

     236,791        6,743,808  

J&J Snack Foods Corp.(b)

     26,773        4,340,706  

John B. Sanfilippo & Son, Inc.

     15,950        1,600,582  

Simply Good Foods Co. (The)(c)

     150,770        5,439,782  

Tootsie Roll Industries, Inc.

     32,018        1,029,379  

TreeHouse Foods, Inc.(c)

     90,366        4,203,826  
     

 

 

 
        32,365,559  
     

 

 

 

Household Products-10.10%

     

Central Garden & Pet Co.(b)(c)

     17,183        758,458  

Central Garden & Pet Co., Class A(b)(c)

     73,584        3,002,227  

WD-40 Co.(b)

     24,193        5,198,350  
     

 

 

 
        8,959,035  
     

 

 

 

Personal Care Products-28.80%

     

Edgewell Personal Care Co.

     91,222        3,517,520  
       Shares          Value    

Personal Care Products-(continued)

     

elf Beauty, Inc.(c)

     90,249      $ 12,518,439  

Inter Parfums, Inc.

     31,962        4,466,050  

Medifast, Inc.(b)

     19,387        1,635,100  

Nu Skin Enterprises, Inc., Class A

     88,989        2,125,947  

USANA Health Sciences, Inc.(b)(c)

     19,928        1,281,171  
     

 

 

 
        25,544,227  
     

 

 

 

Tobacco-5.21%

     

Universal Corp.(b)

     43,793        2,085,423  

Vector Group Ltd.

     236,390        2,531,737  
     

 

 

 
        4,617,160  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.95%
(Cost $85,197,149)

        88,635,896  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-21.92%

 

Invesco Private Government Fund,
5.30%(d)(e)(f)

     5,444,712        5,444,712  

Invesco Private Prime Fund,
5.51%(d)(e)(f)

     14,000,690        14,000,690  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $19,445,402)

 

     19,445,402  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-121.87%
(Cost $104,642,551)

 

     108,081,298  

OTHER ASSETS LESS LIABILITIES-(21.87)%

 

     (19,398,462
     

 

 

 

NET ASSETS-100.00%

      $ 88,682,836  
     

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at August 31, 2023.

(c) 

Non-income producing security.

(d) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31, 2022
     Purchases
at Cost
     Proceeds
from Sales
    Change in
Unrealized
Appreciation
(Depreciation)
    Realized
Gain
    Value
August 31, 2023
    Dividend
Income
 
Investments in Affiliated Money Market Funds:                 
Invesco Government & Agency Portfolio, Institutional Class    $ 48,841      $ 1,146,773      $ (1,195,614   $ -      $ -      $ -      $ 633  

 

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

 

   30   

 

 

 

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC)–(continued)

August 31, 2023

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
August 31, 2023
   Dividend
Income
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund      $ 4,082,330      $ 46,037,611      $ (44,675,229 )     $ -     $ -      $ 5,444,712      $ 199,539 *
Invesco Private Prime Fund        10,750,140        99,892,494        (96,641,751 )       (722 )       529        14,000,690        530,357 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total      $ 14,881,311      $ 147,076,878      $ (142,512,594 )     $ (722 )     $ 529      $ 19,445,402      $ 730,529
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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 August 31, 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.

 

   31   

 

 

 

 


 

Invesco S&P SmallCap Energy ETF (PSCE)

August 31, 2023

Schedule of Investments(a)

 

       Shares          Value    

Common Stocks & Other Equity Interests-99.65%

 

Energy Equipment & Services-38.83%

     

Archrock, Inc.(b)

     618,580      $ 7,911,638  

Bristow Group, Inc.(c)

     107,995        2,991,461  

Core Laboratories, Inc.(b)

     214,202        5,149,416  

Dril-Quip, Inc.(b)(c)

     156,865        4,326,337  

Helix Energy Solutions Group, Inc.(b)(c)

     653,711        6,628,629  

Helmerich & Payne, Inc.(b)

     470,897        18,831,171  

Nabors Industries Ltd.(b)(c)

     41,598        4,604,483  

Oceaneering International, Inc.(b)(c)

     462,566        10,541,879  

Oil States International, Inc.(b)(c)

     294,951        2,312,416  

Patterson-UTI Energy, Inc.

     1,471,317        20,804,422  

ProPetro Holding Corp.(b)(c)

     444,315        4,283,197  

RPC, Inc.(b)

     380,916        3,043,519  

US Silica Holdings, Inc.(c)

     353,748        4,361,713  
     

 

 

 
        95,790,281  
     

 

 

 

Oil, Gas & Consumable Fuels-60.82%

     

California Resources Corp.

     323,842        18,083,337  

Callon Petroleum Co.(b)(c)

     235,722        9,247,374  

Civitas Resources, Inc.(b)

     225,231        18,518,493  

Comstock Resources, Inc.(b)

     420,373        5,153,773  

CONSOL Energy, Inc.(b)

     137,942        11,868,530  

CVR Energy, Inc.(b)

     133,826        4,376,110  

Dorian LPG Ltd.(b)

     146,327        3,775,237  

Green Plains, Inc.(b)(c)

     273,183        8,479,600  

Northern Oil and Gas, Inc.(b)

     371,688        15,547,709  

Par Pacific Holdings, Inc.(b)(c)

     257,773        8,854,503  

REX American Resources Corp.(b)(c)

     70,246        2,774,014  
       Shares          Value    

Oil, Gas & Consumable Fuels-(continued)

     

SM Energy Co.(b)

     553,215      $ 23,406,527  

Talos Energy, Inc.(b)(c)

     495,653        8,535,145  

Vital Energy, Inc.(b)(c)

     85,366        5,146,716  

World Kinect Corp.(b)

     285,191        6,245,683  
     

 

 

 
        150,012,751  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.65%
(Cost $220,598,370)

        245,803,032  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

  

Money Market Funds-26.83%

     

Invesco Private Government Fund,
5.30%(d)(e)(f)

     18,527,942        18,527,942  

Invesco Private Prime Fund,
5.51%(d)(e)(f)

     47,643,280        47,643,280  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $66,170,662)

 

     66,171,222  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-126.48%
(Cost $286,769,032)

 

     311,974,254  

OTHER ASSETS LESS LIABILITIES-(26.48)%

 

     (65,315,528
     

 

 

 

NET ASSETS-100.00%.

      $ 246,658,726  
     

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at August 31, 2023.

(c) 

Non-income producing security.

(d) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2023.

 

     Value
August 31, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
August 31, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ -