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.

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 Index^TM, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.