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Invesco Annual Report to Shareholders

August 31, 2022

KBWB Invesco KBW Bank ETF

KBWD Invesco KBW High Dividend Yield Financial ETF

KBWY Invesco KBW Premium Yield Equity REIT ETF

KBWP Invesco KBW Property & Casualty Insurance ETF

KBWR Invesco KBW Regional Banking ETF

Table of Contents



The Market Environment			3

Management’s Discussion of Fund Performance			4

Liquidity Risk Management Program			14

Schedules of Investments

Invesco KBW Bank ETF (KBWB)			15

Invesco KBW High Dividend Yield Financial ETF (KBWD)			17

Invesco KBW Premium Yield Equity REIT ETF (KBWY)			19

Invesco KBW Property & Casualty Insurance ETF (KBWP)			21

Invesco KBW Regional Banking ETF (KBWR)			22

Statements of Assets and Liabilities			24

Statements of Operations			25

Statements of Changes in Net Assets			26

Financial Highlights			28

Notes to Financial Statements			32

Report of Independent Registered Public Accounting Firm			42

Fund Expenses			43

Tax Information			45

Trustees and Officers			46

Approval of Investment Advisory and Sub-Advisory Contracts			56


		2

The Market Environment

Domestic Equity

The fiscal year began with increasing volatility and the US stock market saw a selloff through most of September due to increasing concerns of inflation resulting from a spike in oil prices and supply chain shortages causing rising costs. Despite the Consumer Price Index (CPI) increasing monthly from June through September 2021,¹ the US Federal Reserve (the Fed) declined to raise interest rates at its September 2021 Federal Open Market Committee meeting.

Equity markets saw continued volatility in the fourth quarter of 2021 amid record inflation and the emergence of a new COVID-19 variant. Pandemic-related supply chain disruption and labor shortages intensified during the quarter, resulting in broadly higher input costs for companies and consumers alike. Additionally, the price of oil rose to nearly $85 per barrel in October,² causing higher gas prices for consumers, and pushing energy stocks higher. The CPI reported for November increased 0.8%, resulting in a 6.8% increase over the prior 12 months, the highest since 1982.¹ To combat inflation, the Fed announced a faster pace of “tapering” at its December meeting, pledging to end its asset purchase program by March 2022. The Fed also announced the potential for three interest rate increases in 2022. With solid corporate earnings and optimism about the COVID-19 Omicron variant reporting milder symptoms, stocks rallied at the 2021 year-end.

Equity markets declined in the first quarter of 2022 amid volatility sparked by Russia’s invasion of Ukraine, rising commodity prices, rampant global inflation and the Fed’s shift toward tighter monetary policy. Russia’s invasion exacerbated inflationary pressures, disrupting already strained supply chains and increasing shortages of oil, gas and raw materials. The price of oil rose sharply, with crude prices reaching their highest price per barrel since 2008.² The CPI rose by another 7.9% for the 12 months ended February 2022 reaching a 40 year high.¹ To combat inflation, the Fed raised the federal funds rate by a one-quarter percentage point in March.

As the war in Ukraine continued and corporate earnings in high-profile names, like Netflix, reported slowing growth and profits, the equity markets sold off for much of April 2022. The downward direction of the equity markets continued for much of the second quarter of 2022 amid record inflation, rising interest rates and an increasing likelihood of a US recession. Driven by higher food and energy prices, the CPI rose by yet another 8.6% for the 12 months ended May 2022 reaching a 40 year high.¹ Oil prices peaked near $122 per barrel in early June, resulting in skyrocketing gasoline prices; the national average price reached a record high above $5 per gallon in early June.² To tame inflation, the Fed raised the benchmark federal funds rate three more times, by 0.50% in May, by 0.75% in June and another 0.75% in July, which were the largest increases in nearly 30 years.³ US

equity markets rose in July and much of August until Fed chairman Jerome Powell’s hawkish comments at Jackson Hole, Wyoming, an economic policy symposium, sparked a sharp selloff at month end. Due to declining energy prices, the CPI rose by 8.5% for the 12 months ending July,¹ down slightly from June, but still at multi-decade highs and far above the Fed’s 2% annual inflation target. As a result, the Fed indicated that it would continue taking aggressive action to curb inflation, though such measures could “bring pain to households and businesses.” The remarks deflated investor optimism that the Fed would pause rate hikes in the second half of 2022 and increased the likelihood of a US recession. In this environment, US stocks had negative double-digit returns of (11.23)% for the fiscal year ended August 31, 2022, measured by the S&P 500 Index.⁴

¹	Source: US Bureau of Labor Statistics

²	Source: Bloomberg LP

³	Source: US Federal Reserve

⁴	Source: Lipper Inc.


		3


KBWB		Management’s Discussion of Fund Performance
KBWB		Invesco KBW Bank ETF (KBWB)

As an index fund, the Invesco KBW Bank ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Bank 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, Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. (the “Index Provider”) compile, maintain and calculate the Index, which is a modified-market capitalization-weighted index of companies primarily engaged in U.S. banking activities, as determined by the Index Provider. The Index is designed to track the performance of large national U.S. money centers, regional banks and thrift institutions that are publicly traded in the U.S. 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, 2022, on a market price basis, the Fund returned (15.33)%. On a net asset value (“NAV”) basis, the Fund returned (15.59)%. During the same time period, the Index returned (15.34)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were partially offset by the Fund holding cash to pay distributions in September, which coincided with the overall market decline.

During this same time period, the S&P 500^® Financials Index (the “Benchmark Index”) returned (12.37)%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 66 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 financial sector of the U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Benchmark Index is broadly diversified across all financial sub-industries and is not concentrated just in the banking sub-industry.

Relative to the Benchmark Index, the Fund was most overweight in the regional banks sub-industry and most underweight in the multi-sector holdings sub-industry during the fiscal year ended August 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to the multi-sector holdings and property & casualty insurance sub-industries, respectively.

For the fiscal year ended August 31, 2022, no sub-industries contributed positively to the Fund’s return. The diversified banks sub-industry detracted most significantly from the Fund’s return during the period, followed by the regional banks sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included M&T Bank Corp., a regional banks company (portfolio average weight of 3.57%) and First Horizon Corp., a regional banks company (portfolio average weight of 1.71%). Positions that detracted most significantly from the Fund’s return included JPMorgan Chase & Co., a diversified banks company (portfolio average weight of 7.80%) and Citigroup, Inc., a diversified banks company (portfolio average weight of 7.71%).


Sub-Industry Breakdown (% of the Fund’s Net Assets) as of August 31, 2022
Regional Banks			44.43
Diversified Banks			39.58
Asset Management & Custody Banks			11.50
Consumer Finance			3.65
Sub-Industry Types Each Less Than 3%			0.79
Money Market Funds Plus Other Assets Less Liabilities			0.05

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2022
Security
Wells Fargo & Co.			8.42
Citigroup, Inc.			8.05
Bank of America Corp.			7.96
JPMorgan Chase & Co.			7.58
U.S. Bancorp			7.57
M&T Bank Corp.			4.45
First Republic Bank			4.31
State Street Corp.			4.15
Truist Financial Corp.			4.15
PNC Financial Services Group, Inc. (The)			3.97
Total			60.61

*	Excluding money market fund holdings


		4

Invesco KBW Bank ETF (KBWB) (continued)

Growth of a $10,000 Investment

LOGO

Fund Performance History as of August 31, 2022


	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception
Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Average Annualized			Cumulative
KBW Nasdaq Bank Index		(15.34	)%		7.56	%		24.43	%		5.53	%		30.87	%		11.08	%		185.90	%		12.56	%		260.32	%
S&P 500^® Financials Index		(12.37	)		9.43			31.03			8.27			48.76			12.66			229.41			13.50			294.00
Fund
NAV Return		(15.59	)		7.22			23.26			5.19			28.76			10.69			176.19			12.18			247.13
Market Price Return		(15.33	)		7.23			23.29			5.24			29.09			10.69			176.18			12.20			248.04

Fund Inception: November 1, 2011

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 0.35% 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.


		5


KBWD		Management’s Discussion of Fund Performance
KBWD		Invesco KBW High Dividend Yield Financial ETF (KBWD)

As an index fund, the Invesco KBW High Dividend Yield Financial ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Financial Sector Dividend Yield 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, Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. (the “Index Provider”) compile, maintain and calculate the Index, which is a modified-dividend yield-weighted index of companies principally engaged in the business of providing financial services and products, as determined by the Index Provider. The Index is designed to track the performance of financial companies, which may include business development companies and real estate investment trusts (“REITs”), with competitive dividend yields that are publicly-traded in the U.S. 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, 2022, on a market price basis, the Fund returned (9.14)%. On a net asset value (“NAV”) basis, the Fund returned (9.15)%. During the same time period, the Index returned (8.90)%. During the fiscal year, the Fund utilized sampling for certain holdings. The Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

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

Relative to the Benchmark Index, the Fund was most overweight in the mortgage REITs sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection in the asset management & custody banks sub-industry and underweight allocation to the diversified banks sub-industry.

For the fiscal year ended August 31, 2022, the life & health insurance sub-industry contributed most significantly to the Fund’s

return, followed by the thrifts & mortgage finance sub-industry. The mortgage REITs sub-industry detracted most significantly from the Fund’s return during the period, followed by the property & casualty insurance sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Unum Group, a life & health insurance company (portfolio average weight of 1.61%) and Carlyle Secured Lending, Inc, an asset management & custody banks company (portfolio average weight of 3.14%). Positions that detracted most significantly from the Fund’s return included Sculptor Capital Management, Inc. Class A, an asset management & custody banks company (no longer held at fiscal year-end) and ARMOUR Residential REIT, Inc., a mortgage REITs company (portfolio average weight of 4.23%).


Sub-Industry Breakdown (% of the Fund’s Net Assets) as of August 31, 2022
Mortgage REITs			38.66
Closed-End Funds			21.52
Asset Management & Custody Banks			16.41
Investment Banking & Brokerage			5.44
Regional Banks			3.64
Thrifts & Mortgage Finance			3.53
Sub-Industry Types Each Less Than 3%			10.68
Money Market Funds Plus Other Assets Less Liabilities			0.12

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2022
Security
ARMOUR Residential REIT, Inc.			4.83
Annaly Capital Management, Inc.			4.21
FS KKR Capital Corp.			4.07
Two Harbors Investment Corp.			3.75
AGNC Investment Corp.			3.73
Ellington Financial, Inc.			3.57
PennyMac Mortgage Investment Trust			3.45
MidCap Financial Investment Corp.			3.44
Newtek Business Services Corp.			3.43
Ready Capital Corp.			3.31
Total			37.79

*	Excluding money market fund holdings


		6

Invesco KBW High Dividend Yield Financial ETF (KBWD) (continued)

Growth of a $10,000 Investment

LOGO

Fund Performance History as of August 31, 2022


	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception
Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Average Annualized			Cumulative
KBW Nasdaq Financial Sector Dividend Yield Index		(8.90	)%		4.72	%		14.84	%		2.91	%		15.40	%		5.64	%		73.07	%		6.56	%		110.85	%
S&P 500^® Financials Index		(12.37	)		9.43			31.03			8.27			48.76			12.66			229.41			10.97			239.54
Fund
NAV Return		(9.15	)		4.72			14.84			2.99			15.90			5.50			70.74			6.37			106.42
Market Price Return		(9.14	)		4.76			14.96			2.99			15.86			5.49			70.68			6.38			106.74

Fund Inception: December 2, 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 2.59% includes the unitary management fee of 0.35% and acquired fund fees and expenses of 2.24%. 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.

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


KBWY		Management’s Discussion of Fund Performance
KBWY		Invesco KBW Premium Yield Equity REIT ETF (KBWY)

As an index fund, the Invesco KBW Premium Yield Equity REIT ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Premium Yield Equity REIT 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, Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. (the “Index Provider”) compile, maintain and calculate the Index, which is a modified-dividend yield-weighted index of domestic equity real estate investment trusts (“REITs”) of small- and mid-capitalization, as determined by the Index Provider. The Index is designed to track the performance of small- and mid-capitalization domestic equity REITs that have competitive dividend yields and are publicly- traded in the U.S. 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, 2022, on a market price basis, the Fund returned (2.06)%. On a net asset value (“NAV”) basis, the Fund returned (2.23)%. During the same time period, the Index returned (1.74)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and expenses incurred during the period as well as costs associated with portfolio rebalancing.

During this same time period, the Dow Jones U.S. Real Estate Index (the “Benchmark Index”) returned (11.31)%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 83 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 United States REIT market.

Relative to the Benchmark Index, the Fund was most overweight in the health care REITs sub-industry and most underweight in the specialized REITs sub-industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection in the residential REITs and health care REITs sub-industries.

For the fiscal year ended August 31, 2022, the residential REITs sub-industry contributed most significantly to the Fund’s return, followed by the health care REITs sub-industry. The industrial REITs sub-industry detracted most significantly from the Fund’s return during the period, followed by the office REITs sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Bluerock Residential Growth REIT, Inc., a residential REITs company (no longer held at fiscal year-end), and Preferred Apartment Communities, Inc., a diversified REITs company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Industrial Logistics Properties Trust, an industrial REITs company (portfolio average weight of 3.25%) and Office Properties Income Trust, an office REITs company (portfolio average weight of 5.26%).


REIT Sub-Industry Breakdown (% of the Fund’s Net Assets) as of August 31, 2022
Health Care REITs			26.47
Retail REITs			19.98
Diversified REITs			16.83
Office REITs			14.07
Specialized REITs			10.23
Industrial REITs			10.09
Residential REITs			2.32
Money Market Funds Plus Other Assets Less Liabilities			0.01

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2022
Security
Global Net Lease, Inc.			6.45
Necessity Retail REIT, Inc. (The)			6.11
Omega Healthcare Investors, Inc.			6.06
Office Properties Income Trust			5.22
Sabra Health Care REIT, Inc.			4.57
CareTrust REIT, Inc.			4.31
LTC Properties, Inc.			4.26
National Health Investors, Inc.			4.21
Gladstone Commercial Corp.			4.03
Getty Realty Corp.			3.95
Total			49.17

*	Excluding money market fund holdings


		8

Invesco KBW Premium Yield Equity REIT ETF (KBWY) (continued)

Growth of a $10,000 Investment

LOGO

Fund Performance History as of August 31, 2022


	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception
Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Average Annualized			Cumulative
KBW Nasdaq Premium Yield Equity REIT Index		(1.74	)%		(1.88	)%		(5.53	)%		(2.63	)%		(12.49	)%		4.92	%		61.67	%		5.70	%		91.76	%
Dow Jones U.S. Real Estate Index		(11.31	)		3.50			10.87			6.35			36.02			7.75			110.86			8.79			169.10
Fund
NAV Return		(2.23	)		(1.68	)		(4.94	)		(2.62	)		(12.43	)		4.73			58.68			5.47			86.85
Market Price Return		(2.06	)		(1.66	)		(4.88	)		(2.61	)		(12.41	)		4.70			58.37			5.49			87.35

Fund Inception: December 2, 2010

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

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


KBWP		Management’s Discussion of Fund Performance
KBWP		Invesco KBW Property & Casualty Insurance ETF (KBWP)

As an index fund, the Invesco KBW Property & Casualty Insurance ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Property & Casualty 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, Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. (the “Index Provider”) compile, maintain and calculate the Index, which is a modified-market capitalization-weighted index designed to track the performance of companies primarily engaged in U.S. property and casualty insurance activities, as determined by the Index Provider. 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, 2022, on a market price basis, the Fund returned (1.79)%. On a net asset value (“NAV”) basis, the Fund returned (1.98)%. During the same time period, the Index returned (1.67)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Property & Casualty Index (the “Benchmark Index”) returned 7.13%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 10 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 United States property and casualty insurance market.

Relative to the Benchmark Index, the Fund was most overweight in the multi-line insurance sub-industry and most underweight in the property & casualty insurance sub-industry during the fiscal year ended August 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to the property & casualty insurance sub-industry.

For the fiscal year ended August 31, 2022, there were no sub-industries that contributed to the Fund’s return during the period. The reinsurance sub-industry detracted most significantly from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Progressive Corp. (The), a property & casualty insurance company (portfolio

average weight of 8.28%), and W.R. Berkley Corp., a property & casualty insurance company (portfolio average weight of 4.19%). Positions that detracted most significantly from the Fund’s return included Mercury General Corp., a property & casualty company (portfolio average weight of 2.69%) and Kemper Corp., a property & casualty insurance company (portfolio average weight of 3.38%).


Sub-Industry Breakdown (% of the Fund’s Net Assets) as of August 31, 2022
Property & Casualty Insurance			73.34
Multi-line Insurance			17.48
Reinsurance			8.98
Money Market Funds Plus Other Assets Less Liabilities			0.20

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2022
Security
Progressive Corp. (The)			9.11
Travelers Cos., Inc. (The)			8.00
Chubb Ltd.			7.93
American International Group, Inc.			7.82
Allstate Corp. (The)			7.81
Selective Insurance Group, Inc.			4.44
Arch Capital Group Ltd.			4.27
Everest Re Group Ltd.			4.22
W.R. Berkley Corp.			4.04
AXIS Capital Holdings Ltd.			4.02
Total			61.66

*	Excluding money market fund holdings


		10

Invesco KBW Property & Casualty Insurance ETF (KBWP) (continued)

Growth of a $10,000 Investment

LOGO

Fund Performance History as of August 31, 2022


	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception
Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Average Annualized			Cumulative
KBW Nasdaq Property & Casualty Index		(1.67	)%		5.60	%		17.76	%		8.81	%		52.56	%		13.46	%		253.64	%		12.86	%		313.91	%
S&P 500^® Property & Casualty Index		7.13			10.32			34.25			11.99			76.15			15.70			329.72			14.32			381.31
Fund
NAV Return		(1.98	)		5.31			16.78			8.48			50.21			13.08			241.93			12.47			297.65
Market Price Return		(1.79	)		5.33			16.85			8.53			50.54			13.08			241.79			12.49			298.28

Fund Inception: December 2, 2010

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

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


KBWR		Management’s Discussion of Fund Performance
KBWR		Invesco KBW Regional Banking ETF (KBWR)

As an index fund, the Invesco KBW Regional Banking ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the KBW Nasdaq Regional Banking 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, Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. (the “Index Provider”) compile, maintain and calculate the Index, which is a modified-market capitalization-weighted index comprised of companies primarily engaged in U.S. regional banking activities, as determined by the Index Provider. The Index is designed to track the performance of U.S. regional banking and thrift companies that are publicly-traded in the U.S. 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, 2022, on a market price basis, the Fund returned (0.49)%. On a net asset value (“NAV”) basis, the Fund returned (0.79)%. During the same time period, the Index returned (0.45)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500^® Commercial Banks Index (the “Benchmark Index”) returned (15.64)%. The Benchmark Index is an unmanaged index weighted by market capitalization and based on the average performance of approximately 100 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 United States commercial banking market.

Relative to the Benchmark Index, the Fund was most overweight in the regional banks sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended August 31, 2022. 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 security selection in the regional banks sub-industry.

For the fiscal year ended August 31, 2022, the thrifts and mortgage finance sub-industry contributed most significantly to the Fund’s return. The regional banks sub-industry detracted most significantly from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included CVB Financial Corp., a regional banks company (portfolio average weight of 1.92%), and Cullen/Frost Bankers, Inc., a regional banks company (portfolio average weight of 3.88%). Positions that detracted most significantly from the Fund’s return included PacWest Bancorp, a regional banks company (portfolio average weight of 1.87%) and Western Alliance Bancorporation, a regional banks company (portfolio average weight of 3.88%).


Sub-Industry Breakdown (% of the Fund’s Net Assets) as of August 31, 2022
Regional Banks			96.85
Thrifts & Mortgage Finance			2.98
Money Market Funds Plus Other Assets Less Liabilities			0.17

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of August 31, 2022
Security
East West Bancorp, Inc.			3.97
Cullen/Frost Bankers, Inc.			3.96
Commerce Bancshares, Inc.			3.95
Webster Financial Corp.			3.88
Western Alliance Bancorporation			3.81
United Community Banks, Inc.			2.16
CVB Financial Corp.			2.14
First Interstate BancSystem, Inc., Class A			2.14
Old National Bancorp			2.12
Glacier Bancorp Inc.			2.12
Total			30.25

*	Excluding money market fund holdings


		12

Invesco KBW Regional Banking ETF (KBWR) (continued)

Growth of a $10,000 Investment

LOGO

Fund Performance History as of August 31, 2022


	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception
Index	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Average Annualized			Cumulative
KBW Nasdaq Regional Banking Index		(0.45	)%		10.22	%		33.88	%		5.90	%		33.19	%		10.39	%		168.63	%		11.88	%		237.17	%
S&P Composite 1500^® Commercial Banks Index		(15.64	)		5.80			18.42			5.35			29.79			10.34			167.59			12.58			260.85
Fund
NAV Return		(0.79	)		9.90			32.72			5.56			31.07			10.01			159.64			11.50			225.17
Market Price Return		(0.49	)		9.94			32.87			5.61			31.36			10.01			159.58			11.53			226.15

Fund Inception: November 1, 2011

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

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

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Funds have adopted and implemented a liquidity risk management program (the “Program”). The Program is reasonably designed to assess and manage the Funds’ liquidity risk, which is the risk that the Funds could not meet redemption requests without significant dilution of remaining investors’ interests in the Funds. The Board of Trustees of the Funds (the “Board”) has appointed Invesco Capital Management LLC (“Invesco”), the Funds’ investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco and its affiliates.

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

At a meeting held on March 15, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Funds and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

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

•

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

•

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

•

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

•

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

•

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


		14

Invesco KBW Bank ETF (KBWB)

August 31, 2022

Schedule of Investments^(a)


	Shares		Value
Common Stocks & Other Equity Interests-99.95%
Asset Management & Custody Banks-11.50%
Bank of New York Mellon Corp. (The)^(b)		1,861,557	$	77,310,462
Northern Trust Corp.		708,981		67,417,004
State Street Corp.		1,196,957		81,812,011

				226,539,477

Consumer Finance-3.65%
Capital One Financial Corp.		678,610		71,810,510


Diversified Banks-39.58%
Bank of America Corp.		4,664,917		156,787,860
Citigroup, Inc.		3,249,112		158,589,157
JPMorgan Chase & Co.		1,312,373		149,256,181
U.S. Bancorp		3,269,930		149,141,507
Wells Fargo & Co.		3,791,464		165,724,892

				779,499,597

Regional Banks-44.43%
Citizens Financial Group, Inc.		1,685,668		61,830,302
Comerica, Inc.		444,892		35,724,828
Fifth Third Bancorp^(b)		2,200,549		75,148,748
First Horizon Corp.		1,819,821		41,164,351
First Republic Bank^(b)		559,676		84,975,607
Huntington Bancshares, Inc.^(b)		4,896,531		65,613,515
KeyCorp		3,172,565		56,122,675
M&T Bank Corp.		482,124		87,640,501
PNC Financial Services Group, Inc. (The)		494,649		78,154,542
Regions Financial Corp.		3,179,469		68,899,093
Signature Bank^(b)		214,102		37,330,825


	Shares		Value
Regional Banks-(continued)
SVB Financial Group^(b)(c)		177,596	$	72,196,326
Truist Financial Corp.		1,744,421		81,708,680
Zions Bancorporation N.A.		514,972		28,338,909

				874,848,902

Thrifts & Mortgage Finance-0.79%
New York Community Bancorp, Inc.^(b)		1,589,013		15,556,437

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.95% (Cost $2,537,213,701)				1,968,254,923


Investments Purchased with Cash Collateral from Securities on Loan

Money Market Funds-1.09%
Invesco Private Government Fund, 2.29%^(d)(e)(f)		6,003,556		6,003,556
Invesco Private Prime Fund, 2.37%^(d)(e)(f)		15,436,171		15,437,715

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $21,440,395)				21,441,271

TOTAL INVESTMENTS IN SECURITIES-101.04% (Cost $2,558,654,096)				1,989,696,194
OTHER ASSETS LESS LIABILITIES-(1.04)%				(20,495,165	)

NET ASSETS-100.00%			$	1,969,201,029

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, 2022.

^(c)	Non-income producing security.

^(d)

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2022.


	Value August 31, 2021			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain			Value August 31, 2022			Dividend Income

Investments in Affiliated Money Market Funds:

Invesco Government & Agency Portfolio, Institutional Class		$	565,597		$	97,146,285		$	(97,711,882	)		$	-		$	-		$	-		$	7,173

Investments Purchased with Cash Collateral from Securities on Loan:

Invesco Private Government Fund			895,708			210,825,533			(205,717,685	)			-			-			6,003,556			40,776	*

Invesco Private Prime Fund			2,089,985			487,485,111			(474,142,412	)			876			4,155			15,437,715			117,052	*


Total		$	3,551,290		$	795,456,929		$	(777,571,979	)		$	876		$	4,155		$	21,441,271		$	165,001

*	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.

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


		15

Invesco KBW Bank ETF (KBWB)–(continued)

August 31, 2022

^(e)	The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

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

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


		16

Invesco KBW High Dividend Yield Financial ETF (KBWD)

August 31, 2022

Schedule of Investments^(a)


	Shares		Value
Common Stocks & Other Equity Interests-78.36%
Asset Management & Custody Banks-16.41%
Artisan Partners Asset Management, Inc., Class A^(b)		282,274	$	9,529,570
BlackRock TCP Capital Corp.^(b)		911,409		12,358,706
Carlyle Secured Lending, Inc., BDC^(b)		870,816		12,531,043
MidCap Financial Investment Corp.^(b)		1,104,742		14,549,452
Newtek Business Services Corp., BDC^(b)		679,102		14,512,410
Patria Investments Ltd., Class A (Cayman Islands)		409,038		5,910,599

				69,391,780

Consumer Finance-2.22%
OneMain Holdings, Inc.^(b)		268,150		9,366,480


Diversified Banks-1.86%
Bank of NT Butterfield & Son Ltd. (The) (Bermuda)		241,748		7,885,820


Investment Banking & Brokerage-5.44%
B. Riley Financial, Inc.		185,496		9,232,136
Lazard Ltd., Class A		207,143		7,529,648
Moelis & Co., Class A^(b)		149,344		6,221,671

				22,983,455

Life & Health Insurance-2.54%
Prudential Financial, Inc.		58,249		5,577,342
Unum Group		136,319		5,159,674

				10,737,016

Mortgage REITs-38.66%
AGNC Investment Corp.		1,318,837		15,760,102
Annaly Capital Management, Inc.^(b)		2,759,081		17,796,072
Apollo Commercial Real Estate Finance, Inc.^(b)		1,183,456		13,787,262
ARMOUR Residential REIT, Inc.^(b)		2,876,215		20,421,127
Broadmark Realty Capital, Inc.		2,107,045		13,590,440
Dynex Capital, Inc.^(b)		804,331		12,475,174
Ellington Financial, Inc.		1,027,670		15,086,196
PennyMac Mortgage Investment Trust^(b)		983,750		14,608,688
Ready Capital Corp.^(b)		1,067,918		13,989,726
Rithm Capital Corp.^(b)		1,072,822		10,116,711
Two Harbors Investment Corp.^(b)		3,266,705		15,843,519

				163,475,017

Property & Casualty Insurance-2.82%
James River Group Holdings Ltd.		42,256		1,004,002
Mercury General Corp.^(b)		145,467		4,640,397
Universal Insurance Holdings, Inc.^(b)		526,840		6,290,470

				11,934,869

Investment Abbreviations:

BDC -Business Development Company

REIT -Real Estate Investment Trust


	Shares		Value
Regional Banks-3.64%
Heritage Commerce Corp.		541,454	$	6,113,015
Northwest Bancshares, Inc.^(b)		659,582		9,280,319

				15,393,334

Thrifts & Mortgage Finance-3.53%
New York Community Bancorp, Inc.^(b)		935,251		9,156,107
Provident Financial Services, Inc.		248,812		5,779,903

				14,936,010

Trading Companies & Distributors-1.24%
Triton International Ltd. (Bermuda)		87,762		5,229,738

Total Common Stocks & Other Equity Interests (Cost $345,873,810)				331,333,519


Closed-End Funds-21.52%
Bain Capital Specialty Finance, Inc., BDC^(b)		872,816		12,856,580
FS KKR Capital Corp., BDC^(b)		797,147		17,202,432
Goldman Sachs BDC, Inc., BDC^(b)		753,485		12,824,315
New Mountain Finance Corp., BDC^(b)		983,255		12,910,138
Oaktree Specialty Lending Corp., BDC		1,877,190		12,990,155
Owl Rock Capital Corp., BDC^(b)		923,816		12,138,942
WhiteHorse Finance, Inc., BDC^(b)		687,453		10,071,186

				90,993,748

Total Closed-End Funds (Cost $89,510,789)				90,993,748

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.88% (Cost $435,384,599)				422,327,267


Investments Purchased with Cash Collateral from Securities on Loan

Money Market Funds-22.51%
Invesco Private Government Fund, 2.29%^(c)(d)(e)		26,654,039		26,654,039
Invesco Private Prime Fund, 2.37%^(c)(d)(e)		68,541,052		68,547,907

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $95,199,575)				95,201,946

TOTAL INVESTMENTS IN SECURITIES-122.39% (Cost $530,584,174)				517,529,213
OTHER ASSETS LESS LIABILITIES-(22.39)%				(94,677,360	)

NET ASSETS-100.00%			$	422,851,853

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


		17

Invesco KBW High Dividend Yield Financial ETF (KBWD)–(continued)

August 31, 2022

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, 2022.

^(c)


	Value August 31, 2021			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)				Value August 31, 2022			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	52,479		$	27,767,838		$	(27,820,317	)		$	-		$	-			$	-		$	2,321
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund			28,288,827			215,370,091			(217,004,879	)			-			-				26,654,039			123,739	*
Invesco Private Prime Fund			66,007,263			469,666,906			(467,101,935	)			2,370			(26,697	)			68,547,907			361,309	*

Total		$	94,348,569		$	712,804,835		$	(711,927,131	)		$	2,370		$	(26,697	)		$	95,201,946		$	487,369

*	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.

^(d)	The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

^(e)	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.


		18

Invesco KBW Premium Yield Equity REIT ETF (KBWY)

August 31, 2022

Schedule of Investments^(a)


	Shares		Value
Common Stocks & Other Equity Interests-99.99%
Diversified REITs-16.83%
Armada Hoffler Properties, Inc.		644,884	$	8,467,327
Gladstone Commercial Corp.^(b)		610,036		11,633,386
Global Net Lease, Inc.^(b)		1,351,780		18,614,011
STORE Capital Corp.		364,347		9,830,082

				48,544,806

Health Care REITs-26.47%
CareTrust REIT, Inc.^(b)		576,912		12,426,684
LTC Properties, Inc.^(b)		273,574		12,280,737
Medical Properties Trust, Inc.^(b)		605,137		8,841,052
National Health Investors, Inc.^(b)		185,312		12,139,789
Omega Healthcare Investors, Inc.^(b)		534,925		17,470,651
Sabra Health Care REIT, Inc.^(b)		881,603		13,197,597

				76,356,510

Industrial REITs-10.09%
Industrial Logistics Properties Trust		1,002,739		7,510,515
LXP Industrial Trust^(b)		646,858		6,507,391
Plymouth Industrial REIT, Inc.^(b)		384,191		7,787,552
STAG Industrial, Inc.		237,089		7,302,341

				29,107,799

Office REITs-14.07%
Brandywine Realty Trust		1,100,880		8,840,066
Easterly Government Properties, Inc.^(b)		495,392		8,892,287
Office Properties Income Trust^(b)		857,018		15,057,806
SL Green Realty Corp.		176,049		7,776,084

				40,566,243

Residential REITs-2.32%
UMH Properties, Inc.		371,592		6,703,520


Retail REITs-19.98%
Getty Realty Corp.		378,309		11,379,535

Investment Abbreviations:

REIT -Real Estate Investment Trust


	Shares		Value
Retail REITs-(continued)
National Retail Properties, Inc.		194,552	$	8,735,385
Necessity Retail REIT, Inc. (The)		2,361,249		17,614,917
Spirit Realty Capital, Inc.		260,636		10,646,980
Urstadt Biddle Properties, Inc., Class A		552,330		9,234,958

				57,611,775

Specialized REITs-10.23%
EPR Properties		226,341		9,843,570
Four Corners Property Trust, Inc.^(b)		315,107		8,473,227
Gaming and Leisure Properties, Inc.		231,659		11,182,180

				29,498,977

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.99% (Cost $313,363,098)				288,389,630


Investments Purchased with Cash Collateral from Securities on Loan

Money Market Funds-14.05%
Invesco Private Government Fund, 2.29%^(c)(d)(e)		11,365,194		11,365,194
Invesco Private Prime Fund, 2.37%^(c)(d)(e)		29,168,029		29,170,947

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $40,535,246)				40,536,141

TOTAL INVESTMENTS IN SECURITIES-114.04% (Cost $353,898,344)				328,925,771
OTHER ASSETS LESS LIABILITIES-(14.04)%				(40,506,111	)

NET ASSETS-100.00%			$	288,419,660

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, 2022.

^(c)

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or is an “affiliated person” under the Investment Company Act of 1940, as amended (the “1940 Act”), which defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. For the Investments in Other Affiliates below, the Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2022.


	Value August 31, 2021	Purchases at Cost	Proceeds from Sales	Change in Unrealized Appreciation (Depreciation)	Realized Gain (Loss)	Value August 31, 2022	Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class	$ -	$ 18,415,210	$ (18,415,210)	$ -	$ -	$ -	$2,313

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


		19

Invesco KBW Premium Yield Equity REIT ETF (KBWY)–(continued)

August 31, 2022


	Value August 31, 2021			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain (Loss)				Value August 31, 2022			Dividend Income
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund		$	15,588,616		$	150,631,447		$	(154,854,869	)		$	-			$	-			$	11,365,194		$	51,727	*
Invesco Private Prime Fund			36,373,437			267,954,458			(275,146,838	)			894				(11,004	)			29,170,947			149,578	*
Investments in Other Affiliates:
Bluerock Residential Growth REIT, Inc.			16,111,243			5,355,180			(33,039,800	)			(2,472,442	)			14,045,819				-			662,081

Total		$	68,073,296		$	442,356,295		$	(481,456,717	)		$	(2,471,548	)		$	14,034,815			$	40,536,141		$	865,699

*	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.

^(d)	The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

^(e)	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.


		20

Invesco KBW Property & Casualty Insurance ETF (KBWP)

August 31, 2022

Schedule of Investments^(a)


	Shares		Value
Common Stocks & Other Equity Interests-99.80%
Multi-line Insurance-17.48%
American International Group, Inc.		312,203	$	16,156,505
Assurant, Inc.		51,847		8,217,231
Hartford Financial Services Group, Inc. (The)		126,352		8,125,697
Horace Mann Educators Corp.		101,489		3,630,262

				36,129,695

Property & Casualty Insurance-73.34%
Allstate Corp. (The)		134,000		16,147,000
American Financial Group, Inc.		64,823		8,276,601
Arch Capital Group Ltd.^(b)		193,041		8,825,834
AXIS Capital Holdings Ltd.		156,386		8,311,916
Chubb Ltd.		86,701		16,390,824
Cincinnati Financial Corp.		71,614		6,943,693
Hanover Insurance Group, Inc. (The)		62,447		8,080,017
James River Group Holdings Ltd.		91,750		2,179,980
Kemper Corp.		156,284		7,189,064
Mercury General Corp.		135,585		4,325,161
ProAssurance Corp.		132,345		2,830,860
Progressive Corp. (The)		153,438		18,819,171
RLI Corp.		75,625		8,300,600
Selective Insurance Group, Inc.		115,541		9,176,266
Travelers Cos., Inc. (The)		102,336		16,541,591


	Shares		Value
Property & Casualty Insurance-(continued)
Universal Insurance Holdings, Inc.		75,820	$	905,291
W.R. Berkley Corp.		128,796		8,345,981

				151,589,850

Reinsurance-8.98%
Everest Re Group Ltd.		32,419		8,722,332
RenaissanceRe Holdings Ltd. (Bermuda)		59,674		8,071,505
SiriusPoint Ltd. (Bermuda)^(b)		397,217		1,775,560

				18,569,397

Total Common Stocks & Other Equity Interests (Cost $214,739,556)				206,288,942


Money Market Funds-0.08%
Invesco Government & Agency Portfolio, Institutional Class, 2.22%^(c)(d) (Cost $158,610)		158,610		158,610

TOTAL INVESTMENTS IN SECURITIES-99.88% (Cost $214,898,166)				206,447,552
OTHER ASSETS LESS LIABILITIES-0.12%				241,009

NET ASSETS-100.00%			$	206,688,561

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)


	Value August 31, 2021			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain			Value August 31, 2022			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	17,923		$	3,158,151		$	(3,017,464	)		$	-		$	-		$	158,610		$	572
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund			12,250			13,178,859			(13,191,109	)			-			-			-			6,246
Invesco Private Prime Fund			31,217			36,140,797			(36,172,935	)			-			921			-			18,902

Total		$	61,390		$	52,477,807		$	(52,381,508	)		$	-		$	921		$	158,610		$	25,720

^(d)	The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

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


		21

Invesco KBW Regional Banking ETF (KBWR)

August 31, 2022

Schedule of Investments^(a)


	Shares		Value
Common Stocks & Other Equity Interests-99.83%
Regional Banks-96.85%
Ameris Bancorp^(b)		31,918	$	1,489,932
Associated Banc-Corp.		68,982		1,382,399
Atlantic Union Bankshares Corp.^(b)		34,477		1,118,779
Bank of Hawaii Corp.		18,522		1,445,086
Bank OZK^(b)		36,718		1,488,181
BankUnited, Inc.		36,544		1,353,955
Brookline Bancorp, Inc.		35,642		444,456
Cadence Bank^(b)		56,977		1,451,774
Cathay General Bancorp		34,557		1,449,321
Columbia Banking System, Inc.^(b)		36,160		1,082,992
Commerce Bancshares, Inc.		43,213		2,971,758
Community Bank System, Inc.		23,069		1,508,251
Cullen/Frost Bankers, Inc.		22,943		2,981,672
CVB Financial Corp.		61,442		1,612,238
East West Bancorp, Inc.		41,410		2,988,560
Eastern Bankshares, Inc.		78,223		1,517,526
F.N.B. Corp.		125,324		1,493,862
First Bancorp		90,819		1,298,712
First Commonwealth Financial Corp.^(b)		43,367		584,587
First Financial Bancorp		43,406		936,702
First Financial Bankshares, Inc.^(b)		36,926		1,569,724
First Hawaiian, Inc.		58,866		1,513,445
First Interstate BancSystem, Inc., Class A		40,002		1,610,481
Fulton Financial Corp.		73,915		1,199,640
Glacier Bancorp, Inc.^(b)		31,455		1,594,139
Hancock Whitney Corp.		30,550		1,473,427
Home BancShares, Inc.^(b)		67,404		1,586,016
Hope Bancorp, Inc.^(b)		55,367		801,161
Independent Bank Corp.^(b)		18,278		1,429,888
Old National Bancorp		95,765		1,598,318
Pacific Premier Bancorp, Inc.		43,648		1,429,909
PacWest Bancorp		48,222		1,269,685
Pinnacle Financial Partners, Inc.^(b)		18,699		1,509,196
Popular, Inc.		18,637		1,439,149
Prosperity Bancshares, Inc.^(b)		21,006		1,488,905
Simmons First National Corp., Class A^(b)		59,234		1,397,330
South State Corp.		18,846		1,470,742
Synovus Financial Corp.^(b)		35,709		1,434,073
Texas Capital Bancshares, Inc.^(b)(c)		23,312		1,376,107
Trustmark Corp.		28,258		891,257
UMB Financial Corp.		16,490		1,475,360


	Shares		Value
Regional Banks-(continued)
United Bankshares, Inc.		40,547	$	1,504,294
United Community Banks, Inc.^(b)		48,446		1,624,394
Valley National Bancorp^(b)		119,782		1,391,867
Washington Federal, Inc.		30,028		961,196
Webster Financial Corp.		62,043		2,919,123
Western Alliance Bancorporation		37,426		2,871,323
Wintrust Financial Corp.		17,422		1,469,372

				72,900,264

Thrifts & Mortgage Finance-2.98%
Provident Financial Services, Inc.		34,675		805,500
WSFS Financial Corp.		29,735		1,437,688

				2,243,188

Total Common Stocks & Other Equity Interests (Cost $81,586,763)				75,143,452


Money Market Funds-0.02%
Invesco Government & Agency Portfolio, Institutional Class, 2.22%^(d)(e) (Cost $15,014)		15,014		15,014

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.85% (Cost $81,601,777)				75,158,466


Investments Purchased with Cash Collateral from Securities on Loan

Money Market Funds-15.99%
Invesco Private Government Fund, 2.29%^(d)(e)(f)		3,369,206		3,369,206
Invesco Private Prime Fund, 2.37%^(d)(e)(f)		8,662,807		8,663,673

Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $12,032,516)				12,032,879

TOTAL INVESTMENTS IN SECURITIES-115.84% (Cost $93,634,293)				87,191,345
OTHER ASSETS LESS LIABILITIES-(15.84)%				(11,923,322	)

NET ASSETS-100.00%			$	75,268,023

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


		22

Invesco KBW Regional Banking ETF (KBWR)–(continued)

August 31, 2022

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, 2022.

^(c)	Non-income producing security.

^(d)


	Value August 31, 2021			Purchases at Cost			Proceeds from Sales				Change in Unrealized Appreciation			Realized Gain (Loss)				Value August 31, 2022			Dividend Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		$	57,308		$	2,326,123		$	(2,368,417	)		$	-		$	-			$	15,014		$	256
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund			793,247			33,056,117			(30,480,158	)			-			-				3,369,206			15,427	*
Invesco Private Prime Fund			1,850,911			72,095,373			(65,282,135	)			363			(839	)			8,663,673			43,213	*

Total		$	2,701,466		$	107,477,613		$	(98,130,710	)		$	363		$	(839	)		$	12,047,893		$	58,896

*	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, 2022.

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

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


		23

Statements of Assets and Liabilities

August 31, 2022


	Invesco KBW Bank ETF (KBWB)			Invesco KBW High Dividend Yield Financial ETF (KBWD)			Invesco KBW Premium Yield Equity REIT ETF (KBWY)			Invesco KBW Property & Casualty Insurance ETF (KBWP)			Invesco KBW Regional Banking ETF (KBWR)
Assets:
Unaffiliated investments in securities, at value^(a)	$	1,968,254,923		$	422,327,267		$	288,389,630		$	206,288,942		$	75,143,452
Affiliated investments in securities, at value		21,441,271			95,201,946			40,536,141			158,610			12,047,893
Receivable for:
Dividends		3,123,026			635,393			219,251			302,978			131,812
Securities lending		3,501			22,221			2,000			157			684
Fund shares sold		4,898,507			-			1,112,073			-			-

Total assets		1,997,721,228			518,186,827			330,259,095			206,750,687			87,323,841


Liabilities:
Due to custodian		1,587,391			4,934			102,957			-			-
Payable for:
Investments purchased		4,896,692			-			1,111,716			-			-
Collateral upon return of securities loaned		21,440,395			95,199,575			40,535,246			-			12,032,516
Accrued unitary management fees		595,721			130,465			89,516			62,126			23,302

Total liabilities		28,520,199			95,334,974			41,839,435			62,126			12,055,818

Net Assets	$	1,969,201,029		$	422,851,853		$	288,419,660		$	206,688,561		$	75,268,023


Net assets consist of:
Shares of beneficial interest	$	2,569,201,021		$	605,420,169		$	473,519,324		$	223,618,474		$	92,165,481
Distributable earnings (loss)		(599,999,992	)		(182,568,316	)		(185,099,664	)		(16,929,913	)		(16,897,458	)

Net Assets	$	1,969,201,029		$	422,851,853		$	288,419,660		$	206,688,561		$	75,268,023

Shares outstanding (unlimited amount authorized, $0.01 par value)		36,180,000			24,590,000			13,070,000			2,700,000			1,300,000
Net asset value	$	54.43		$	17.20		$	22.07		$	76.55		$	57.90

Market price	$	54.52		$	17.21		$	22.09		$	76.65		$	57.95

Unaffiliated investments in securities, at cost	$	2,537,213,701		$	435,384,599		$	313,363,098		$	214,739,556		$	81,586,763

Affiliated investments in securities, at cost	$	21,440,395		$	95,199,575		$	40,535,246		$	158,610		$	12,047,530

^(a)Includes securities on loan with an aggregate value of:	$	20,633,499		$	92,141,097		$	39,316,214		$	-		$	11,637,225

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


		24

Statements of Operations

For the year ended August 31, 2022


	Invesco KBW Bank ETF (KBWB)			Invesco KBW High Dividend Yield Financial ETF (KBWD)			Invesco KBW Premium Yield Equity REIT ETF (KBWY)			Invesco KBW Property & Casualty Insurance ETF (KBWP)			Invesco KBW Regional Banking ETF (KBWR)
Investment income:
Unaffiliated dividend income	$	71,528,306		$	31,742,522		$	10,224,813		$	2,814,499		$	2,076,899
Affiliated dividend income		7,173			2,321			664,394			572			256
Securities lending income, net		30,807			242,505			32,902			2,487			7,124
Foreign withholding tax		-			-			-			-			(8,393	)

Total investment income		71,566,286			31,987,348			10,922,109			2,817,558			2,075,886


Expenses:
Unitary management fees		9,466,663			1,624,018			1,109,836			400,894			276,748
Tax expenses		-			-			-			2,501			-

Total expenses		9,466,663			1,624,018			1,109,836			403,395			276,748

Less: Waivers		(621	)		(164	)		(182	)		(37	)		(21	)

Net expenses		9,466,042			1,623,854			1,109,654			403,358			276,727

Net investment income		62,100,244			30,363,494			9,812,455			2,414,200			1,799,159


Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Unaffiliated investment securities		(83,973,167	)		(6,628,956	)		10,168,801			(391,048	)		(2,197,168	)
Affiliated investment securities		4,155			(26,697	)		14,034,815			921			(839	)
In-kind redemptions		148,033,582			20,740,520			39,945,519			2,904,409			1,588,462

Net realized gain (loss)		64,064,570			14,084,867			64,149,135			2,514,282			(609,545	)

Change in net unrealized appreciation (depreciation) of:
Unaffiliated investment securities		(616,756,839	)		(92,545,612	)		(76,987,352	)		(16,681,345	)		(4,112,526	)
Affiliated investment securities		876			2,370			(2,471,548	)		-			363

Change in net unrealized appreciation (depreciation)		(616,755,963	)		(92,543,242	)		(79,458,900	)		(16,681,345	)		(4,112,163	)

Net realized and unrealized gain (loss)		(552,691,393	)		(78,458,375	)		(15,309,765	)		(14,167,063	)		(4,721,708	)

Net increase (decrease) in net assets resulting from operations	$	(490,591,149	)	$	(48,094,881	)	$	(5,497,310	)	$	(11,752,863	)	$	(2,922,549	)

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


		25

Statements of Changes in Net Assets

For the years ended August 31, 2022 and 2021


	Invesco KBW Bank ETF (KBWB)								Invesco KBW High Dividend Yield Financial ETF (KBWD)
	2022				2021				2022				2021
Operations:
Net investment income		$	62,100,244			$	41,908,427			$	30,363,494			$	22,881,881
Net realized gain (loss)			64,064,570				516,670,012				14,084,867				(6,083,384	)
Change in net unrealized appreciation (depreciation)			(616,755,963	)			209,700,645				(92,543,242	)			134,861,819

Net increase (decrease) in net assets resulting from operations			(490,591,149	)			768,279,084				(48,094,881	)			151,660,316


Distributions to Shareholders from:
Distributable earnings			(65,164,401	)			(34,452,457	)			(39,784,352	)			(26,982,397	)


Shareholder Transactions:
Proceeds from shares sold			4,094,517,993				5,456,085,474				160,076,565				148,601,484
Value of shares repurchased			(4,547,864,150	)			(3,975,572,555	)			(114,842,574	)			(37,417,928	)

Net increase (decrease) in net assets resulting from share transactions			(453,346,157	)			1,480,512,919				45,233,991				111,183,556

Net increase (decrease) in net assets			(1,009,101,707	)			2,214,339,546				(42,645,242	)			235,861,475


Net assets:
Beginning of period			2,978,302,736				763,963,190				465,497,095				229,635,620

End of period		$	1,969,201,029			$	2,978,302,736			$	422,851,853			$	465,497,095


Changes in Shares Outstanding:
Shares sold			61,560,000				95,760,000				7,970,000				7,810,000
Shares repurchased			(70,360,000	)			(70,080,000	)			(5,890,000	)			(2,000,000	)
Shares outstanding, beginning of period			44,980,000				19,300,000				22,510,000				16,700,000

Shares outstanding, end of period			36,180,000				44,980,000				24,590,000				22,510,000

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


		26


Invesco KBW Premium Yield Equity REIT ETF (KBWY)								Invesco KBW Property & Casualty Insurance ETF (KBWP)								Invesco KBW Regional Banking ETF (KBWR)
2022				2021				2022				2021				2022				2021

	$	9,812,455			$	8,434,153			$	2,414,200			$	5,002,625			$	1,799,159			$	1,447,442
		64,149,135				(22,521,430	)			2,514,282				48,555,711				(609,545	)			3,960,063
		(79,458,900	)			91,166,639				(16,681,345	)			10,602,124				(4,112,163	)			15,509,812

		(5,497,310	)			77,079,362				(11,752,863	)			64,160,460				(2,922,549	)			20,917,317



		(17,784,899	)			(17,377,292	)			(2,788,226	)			(4,271,635	)			(1,800,845	)			(1,334,791	)



		116,944,071				171,624,563				151,564,768				95,105,554				24,061,190				55,708,173
		(155,305,074	)			(54,289,034	)			(18,928,465	)			(249,505,040	)			(17,597,678	)			(30,087,549	)

		(38,361,003	)			117,335,529				132,636,303				(154,399,486	)			6,463,512				25,620,624

		(61,643,212	)			177,037,599				118,095,214				(94,510,661	)			1,740,118				45,203,150



		350,062,872				173,025,273				88,593,347				183,104,008				73,527,905				28,324,755

	$	288,419,660			$	350,062,872			$	206,688,561			$	88,593,347			$	75,268,023			$	73,527,905



		4,910,000				7,900,000				1,840,000				1,380,000				370,000				940,000
		(6,480,000	)			(2,510,000	)			(240,000	)			(3,330,000	)			(300,000	)			(510,000	)
		14,640,000				9,250,000				1,100,000				3,050,000				1,230,000				800,000

		13,070,000				14,640,000				2,700,000				1,100,000				1,300,000				1,230,000


		27

Financial Highlights

Invesco KBW Bank ETF (KBWB)


	Years Ended August 31,												Ten Months Ended August 31, 2018			Year Ended October 31, 2017
	2022			2021			2020			2019			Ten Months Ended August 31, 2018			Year Ended October 31, 2017
Per Share Operating Performance:
Net asset value at beginning of period	$	66.21		$	39.58		$	48.15		$	57.01		$	52.36		$	38.40

Net investment income^(a)		1.49			1.31			1.40			1.27			0.83			0.77
Net realized and unrealized gain (loss) on investments		(11.66	)		26.56			(8.45	)		(8.86	)		4.51			13.92

Total from investment operations		(10.17	)		27.87			(7.05	)		(7.59	)		5.34			14.69


Distributions to shareholders from:
Net investment income		(1.61	)		(1.24	)		(1.52	)		(1.27	)		(0.69	)		(0.73	)

Net asset value at end of period	$	54.43		$	66.21		$	39.58		$	48.15		$	57.01		$	52.36

Market price at end of period^(b)	$	54.52		$	66.11		$	39.68		$	48.22		$	57.01		$	52.39

Net Asset Value Total Return^(c)		(15.59	)%		71.42	%		(14.81	)%		(13.30	)%		10.24	%		38.42	%
Market Price Total Return^(c)		(15.33	)%		70.75	%		(14.72	)%		(13.18	)%		10.18	%		38.36	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,969,201		$	2,978,303		$	763,963		$	563,393		$	1,023,260		$	932,052
Ratio to average net assets of:
Expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%^(d)		0.35	%
Net investment income		2.30	%		2.25	%		3.07	%		2.51	%		1.78	%^(d)		1.60	%
Portfolio turnover rate^(e)		23	%		22	%		18	%		13	%		7	%		9	%

^(a)	Based on average shares outstanding.

^(b)	The mean between the last bid and ask prices.

^(c)

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

^(d)	Annualized.

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

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


		28

Financial Highlights–(continued)

Invesco KBW High Dividend Yield Financial ETF (KBWD)


	Years Ended August 31,												Ten Months Ended August 31, 2018			Year Ended October 31, 2017
	2022			2021			2020			2019			Ten Months Ended August 31, 2018			Year Ended October 31, 2017
Per Share Operating Performance:
Net asset value at beginning of period	$	20.68		$	13.75		$	19.81		$	23.68		$	23.43		$	21.49

Net investment income^(a)		1.25			1.19			1.39			1.59			1.23			1.84
Net realized and unrealized gain (loss) on investments		(3.08	)		7.14			(5.66	)		(3.67	)		0.69			2.16

Total from investment operations		(1.83	)		8.33			(4.27	)		(2.08	)		1.92			4.00

Distributions to shareholders from:
Net investment income		(1.65	)		(1.40	)		(1.79	)		(1.79	)		(1.67	)		(1.88	)
Return of capital		-			-			-			-			-			(0.18	)

Total distributions		(1.65	)		(1.40	)		(1.79	)		(1.79	)		(1.67	)		(2.06	)

Net asset value at end of period	$	17.20		$	20.68		$	13.75		$	19.81		$	23.68		$	23.43

Market price at end of period^(b)	$	17.21		$	20.69		$	13.77		$	19.80		$	23.69		$	23.46

Net Asset Value Total Return^(c)		(9.15	)%		62.77	%		(22.34	)%		(9.06	)%		8.57	%		18.95	%
Market Price Total Return^(c)		(9.15	)%		62.61	%		(22.18	)%		(9.15	)%		8.47	%		18.99	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	422,852		$	465,497		$	229,636		$	270,390		$	344,556		$	319,788
Ratio to average net assets of:
Expenses^(d)		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%^(e)		0.35	%
Net investment income		6.54	%		6.55	%		8.08	%		7.32	%		6.36	%^(e)		7.77	%
Portfolio turnover rate^(f)		76	%		59	%		77	%		54	%		46	%		52	%

^(a)	Based on average shares outstanding.

^(b)	The mean between the last bid and ask prices.

^(c)

^(d)

In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)	Annualized.

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

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


		29

Financial Highlights–(continued)

Invesco KBW Premium Yield Equity REIT ETF (KBWY)


	Years Ended August 31,												Ten Months Ended August 31,			Year Ended October 31,
	2022			2021			2020			2019			2018			2017
Per Share Operating Performance:
Net asset value at beginning of period	$	23.91		$	18.71		$	29.25		$	35.80		$	36.64		$	33.95

Net investment income^(a)		0.74			0.69			1.36			1.21			1.45			1.49
Net realized and unrealized gain (loss) on investments		(1.23	)		5.94			(9.62	)		(5.86	)		(0.18	)		3.78

Total from investment operations		(0.49	)		6.63			(8.26	)		(4.65	)		1.27			5.27

Distributions to shareholders from:
Net investment income		(1.35	)		(1.43	)		(2.28	)		(1.90	)		(2.11	)		(2.58	)

Net asset value at end of period	$	22.07		$	23.91		$	18.71		$	29.25		$	35.80		$	36.64

Market price at end of period^(b)	$	22.09		$	23.89		$	18.74		$	29.26		$	35.80		$	36.67

Net Asset Value Total Return^(c)		(2.23	)%		36.86	%		(28.96	)%		(12.94	)%		4.05	%		15.71	%
Market Price Total Return^(c)		(2.06	)%		36.52	%		(28.87	)%		(12.91	)%		3.95	%		15.79	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	288,420		$	350,063		$	173,025		$	317,390		$	442,126		$	381,021
Ratio to average net assets of:
Expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%^(d)		0.35	%
Net investment income		3.09	%		3.16	%		5.45	%		3.94	%		5.16	%^(d)		4.04	%
Portfolio turnover rate^(e)		77	%		72	%		100	%		69	%		53	%		61	%

^(a)	Based on average shares outstanding.

^(b)	The mean between the last bid and ask prices.

^(c)

^(d)	Annualized.

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

Invesco KBW Property & Casualty Insurance ETF (KBWP)


	Years Ended August 31,												Ten Months Ended August 31,			Year Ended October 31,
	2022			2021			2020			2019			2018			2017
Per Share Operating Performance:
Net asset value at beginning of period	$	80.54		$	60.03		$	70.73		$	63.85		$	59.67		$	50.41

Net investment income^(a)		1.68			1.94	^(b)		1.28			1.35			1.22			1.12
Net realized and unrealized gain (loss) on investments		(3.26	)		20.09			(10.63	)		7.06			4.06			9.23

Total from investment operations		(1.58	)		22.03			(9.35	)		8.41			5.28			10.35

Distributions to shareholders from:
Net investment income		(2.41	)		(1.52	)		(1.35	)		(1.53	)		(1.10	)		(1.09	)

Net asset value at end of period	$	76.55		$	80.54		$	60.03		$	70.73		$	63.85		$	59.67

Market price at end of period^(c)	$	76.65		$	80.48		$	60.13		$	70.78		$	63.92		$	59.68

Net Asset Value Total Return^(d)		(1.98	)%		37.10	%		(13.11	)%		13.54	%		8.99	%		20.68	%
Market Price Total Return^(d)		(1.79	)%		36.78	%		(13.03	)%		13.50	%		9.09	%		20.63	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	206,689		$	88,593		$	183,104		$	109,630		$	67,040		$	98,462
Ratio to average net assets of:
Expenses		0.35	%		0.35	%		0.35	%		0.36	%^(e)		0.35	%^(f)		0.35	%
Net investment income		2.11	%		2.82	%^(b)		2.04	%		2.09	%^(e)		2.41	%^(f)		1.97	%
Portfolio turnover rate^(g)		8	%		16	%		16	%		14	%		22	%		16	%

^(a)	Based on average shares outstanding.

^(b)

Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $1.54 and 2.23%, respectively.

^(c)	The mean between the last bid and ask prices.

^(d)

^(e)	Ratios include non-recurring costs associated with a proxy statement of 0.01%.

^(f)	Annualized.

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

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


		30

Financial Highlights–(continued)

Invesco KBW Regional Banking ETF (KBWR)


	Years Ended August 31,												Ten Months Ended August 31,			Year Ended October 31,
	2022			2021			2020			2019			2018			2017
Per Share Operating Performance:
Net asset value at beginning of period	$	59.78		$	35.41		$	47.62		$	59.19		$	55.13		$	44.09

Net investment income^(a)		1.38			1.32			1.32			1.20			0.89			0.94
Net realized and unrealized gain (loss) on investments		(1.87	)		24.29			(12.07	)		(11.52	)		3.94			10.96

Total from investment operations		(0.49	)		25.61			(10.75	)		(10.32	)		4.83			11.90

Distributions to shareholders from:
Net investment income		(1.39	)		(1.24	)		(1.46	)		(1.25	)		(0.77	)		(0.86	)

Net asset value at end of period	$	57.90		$	59.78		$	35.41		$	47.62		$	59.19		$	55.13

Market price at end of period^(b)	$	57.95		$	59.66		$	35.44		$	47.61		$	59.19		$	55.20

Net Asset Value Total Return^(c)		(0.79	)%		73.45	%		(22.87	)%		(17.48	)%		8.79	%		27.06	%
Market Price Total Return^(c)		(0.49	)%		72.96	%		(22.80	)%		(17.50	)%		8.65	%		27.05	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	75,268		$	73,528		$	28,325		$	69,047		$	195,338		$	148,854
Ratio to average net assets of:
Expenses		0.35	%		0.35	%		0.35	%		0.36	%^(d)		0.35	%^(e)		0.35	%
Net investment income		2.28	%		2.41	%		2.96	%		2.33	%^(d)		1.85	%^(e)		1.75	%
Portfolio turnover rate^(f)		27	%		20	%		21	%		15	%		14	%		21	%

^(a)	Based on average shares outstanding.

^(b)	The mean between the last bid and ask prices.

^(c)

^(d)	Ratios include non-recurring costs associated with a proxy statement of 0.01%.

^(e)	Annualized.

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

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


		31

Notes to Financial Statements

Invesco Exchange-Traded Fund Trust II

August 31, 2022

NOTE 1–Organization

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


Full Name		Short Name

Invesco KBW Bank ETF (KBWB)		“KBW Bank ETF”

Invesco KBW High Dividend Yield Financial ETF (KBWD)		“KBW High Dividend Yield Financial ETF”

Invesco KBW Premium Yield Equity REIT ETF (KBWY)		“KBW Premium Yield Equity REIT ETF”

Invesco KBW Property & Casualty Insurance ETF (KBWP)		“KBW Property & Casualty Insurance ETF”

Invesco KBW Regional Banking ETF (KBWR)		“KBW Regional Banking ETF”

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

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

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


Fund		Underlying Index

KBW Bank ETF		KBW Nasdaq Bank Index

KBW High Dividend Yield Financial ETF		KBW Nasdaq Financial Sector Dividend Yield Index

KBW Premium Yield Equity REIT ETF		KBW Nasdaq Premium Yield Equity REIT Index

KBW Property & Casualty Insurance ETF		KBW Nasdaq Property & Casualty Index

KBW Regional Banking ETF		KBW Nasdaq Regional Banking Index

NOTE 2–Significant Accounting Policies

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

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

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

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

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

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

Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for


		32

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

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

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

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

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

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

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

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

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


		33

included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

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

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

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

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

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

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

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

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

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

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


		34

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

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

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

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

On September 14, 2021, the Board of Trustees appointed Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, to serve as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also continues to serve as a lending agent. Prior to September 14, 2021, BNYM served as the sole securities lending agent for each Fund under the securities lending program. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the period September 14, 2021 through August 31, 2022, each Fund had affiliated securities lending transactions with Invesco. Fees paid to Invesco for securities lending agent services, which are included in Securities lending income on the Statements of Operations, were incurred by each Fund as listed below:


	Amount

KBW Bank ETF		$1,007

KBW High Dividend Yield Financial ETF		7,115

KBW Premium Yield Equity REIT ETF		1,045

KBW Property & Casualty Insurance ETF		79

KBW Regional Banking ETF		510


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J.	Other Risks

Authorized Participant Concentration Risk. Only authorized participants (“APs”) may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower trading volumes or could experience extended market closures or trading halts, may increase this risk.

Business Development Company (“BDC”) Risk. Certain Funds invest in BDCs. There are certain risks inherent in investing in BDCs, whose principal business is to invest in, and lend capital or provide services to, privately held companies. BDCs generally invest in less mature private companies, which involve greater risk than well-established publicly traded companies. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed evaluation of a BDC and its portfolio of investments. In addition, investments made by BDCs generally are subject to legal and other restrictions on resale and otherwise are less liquid than publicly traded securities. With respect to a BDC’s investment in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Investment advisers to BDCs may be entitled to compensation based on the BDC’s performance, which may result in riskier or more speculative investments in an effort to maximize incentive compensation and higher fees. In addition, to the extent that a Fund invests a portion of its assets in BDCs, a shareholder in the Fund not only will bear his or her proportionate share of the expenses of the Fund, but also will bear indirectly the expenses of the BDCs.

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

High Dividend Paying Securities Risk. Certain Funds invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in which a Fund invests and the capital resources available for such companies’ dividend payments may adversely affect a Fund. In addition, the value of dividend-paying stocks can decline when interest rates rise, as fixed-income investments become more attractive to investors.

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

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

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


		36

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

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

Non-Diversified Fund Risk. Because KBW Bank ETF and KBW Property & Casualty Insurance ETF are non-diversified and can invest a greater portion of their respective assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

REIT Risk. REITs are pooled investment vehicles that trade like stocks and invest substantially all of their assets in real estate and may qualify for special tax considerations. REITs are subject to certain risks inherent in the direct ownership of real estate, including without limitation, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers. Further, failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the REIT’s shareholders. In addition, REITs may have expenses, including advisory and administration expenses, and REIT shareholders will incur a proportionate share of the underlying expenses.

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

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

NOTE 3–Investment Advisory Agreement and Other Agreements

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

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


		Unitary Management Fees (as a % of average daily net assets)

KBW Bank ETF		0.35%

KBW High Dividend Yield Financial ETF		0.35%

KBW Premium Yield Equity REIT ETF		0.35%

KBW Property & Casualty Insurance ETF		0.35%

KBW Regional Banking ETF		0.35%

Through at least August 31, 2024, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. These


		37

waivers do not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date.

For the fiscal year ended August 31, 2022, the Adviser waived fees for each Fund in the following amounts:



KBW Bank ETF	$	621

KBW High Dividend Yield Financial ETF		164

KBW Premium Yield Equity REIT ETF		182

KBW Property & Casualty Insurance ETF		37

KBW Regional Banking ETF		21

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

The Adviser has entered into a licensing agreement for each Fund with Keefe, Bruyette & Woods, Inc. (the “Licensor”).

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

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

For the fiscal year ended August 31, 2022, the following Funds incurred brokerage commissions with Invesco Capital Markets, Inc. (“ICMI”), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:



KBW Bank ETF	$	60,341

KBW High Dividend Yield Financial ETF		34,595

KBW Premium Yield Equity REIT ETF		15,760

KBW Property & Casualty Insurance ETF		923

KBW Regional Banking ETF		4,732

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

NOTE 4–Additional Valuation Information

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


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

Level 2 –		Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 –		Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of August 31, 2022, for each Fund (except for KBW Property & Casualty Insurance ETF). As of August 31, 2022, all of the securities in KBW Property & Casualty Insurance ETF were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties


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of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.


	Level 1			Level 2			Level 3			Total

KBW Bank ETF
Investments in Securities
Common Stocks & Other Equity Interests		$	1,968,254,923		$	-		$	-		$	1,968,254,923
Money Market Funds			-			21,441,271			-			21,441,271

Total Investments		$	1,968,254,923		$	21,441,271		$	-		$	1,989,696,194

KBW High Dividend Yield Financial ETF
Investments in Securities
Common Stocks & Other Equity Interests		$	331,333,519		$	-		$	-		$	331,333,519
Closed-End Funds			90,993,748			-			-			90,993,748
Money Market Funds			-			95,201,946			-			95,201,946

Total Investments		$	422,327,267		$	95,201,946		$	-		$	517,529,213

KBW Premium Yield Equity REIT ETF
Investments in Securities
Common Stocks & Other Equity Interests		$	288,389,630		$	-		$	-		$	288,389,630
Money Market Funds			-			40,536,141			-			40,536,141

Total Investments		$	288,389,630		$	40,536,141		$	-		$	328,925,771

KBW Regional Banking ETF
Investments in Securities
Common Stocks & Other Equity Interests		$	75,143,452		$	-		$	-		$	75,143,452
Money Market Funds			15,014			12,032,879			-			12,047,893

Total Investments		$	75,158,466		$	12,032,879		$	-		$	87,191,345

NOTE 5–Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended August 31, 2022 and 2021:


	2022		2021
	Ordinary Income*		Ordinary Income*

KBW Bank ETF	$	65,164,401	$	34,452,457

KBW High Dividend Yield Financial ETF		39,784,352		26,982,397

KBW Premium Yield Equity REIT ETF		17,784,899		17,377,292

KBW Property & Casualty Insurance ETF		2,788,226		4,271,635

KBW Regional Banking ETF		1,800,845		1,334,791

*	Includes short-term capital gain distributions, if any.

Tax Components of Net Assets at Fiscal Year-End:


	Undistributed Ordinary Income			Net Unrealized Appreciation (Depreciation)- Investments				Capital Loss Carryforwards				Shares of Beneficial Interest			Total Net Assets

KBW Bank ETF		$	7,744,550		$	(589,476,875	)		$	(18,267,667	)		$	2,569,201,021		$	1,969,201,029

KBW High Dividend Yield Financial ETF			-			(24,595,780	)			(157,972,536	)			605,420,169			422,851,853

KBW Premium Yield Equity REIT ETF			-			(32,960,770	)			(152,138,894	)			473,519,324			288,419,660

KBW Property & Casualty Insurance ETF			359,465			(9,456,468	)			(7,832,910	)			223,618,474			206,688,561

KBW Regional Banking ETF			309,885			(7,537,016	)			(9,670,327	)			92,165,481			75,268,023

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


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


	No expiration
	Short-Term		Long-Term		Total*

KBW Bank ETF	$	16,742,453	$	1,525,214	$	18,267,667

KBW High Dividend Yield Financial ETF		32,212,693		125,759,843		157,972,536

KBW Premium Yield Equity REIT ETF		47,628,538		104,510,356		152,138,894

KBW Property & Casualty Insurance ETF		1,684,049		6,148,861		7,832,910

KBW Regional Banking ETF		2,311,163		7,359,164		9,670,327

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

NOTE 6–Investment Transactions

For the fiscal year ended August 31, 2022, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:


	Purchases		Sales

KBW Bank ETF	$	618,966,181	$	622,156,665

KBW High Dividend Yield Financial ETF		356,406,462		346,897,754

KBW Premium Yield Equity REIT ETF		252,515,066		241,255,982

KBW Property & Casualty Insurance ETF		8,831,152		9,545,729

KBW Regional Banking ETF		21,470,950		21,448,838

For the fiscal year ended August 31, 2022, in-kind transactions associated with creations and redemptions were as follows:


	In-kind		In-kind
	Purchases		Sales

KBW Bank ETF	$	4,068,559,149	$	4,519,600,923

KBW High Dividend Yield Financial ETF		152,066,968		114,762,100

KBW Premium Yield Equity REIT ETF		91,066,202		138,576,864

KBW Property & Casualty Insurance ETF		151,473,653		18,789,549

KBW Regional Banking ETF		24,036,179		17,578,541

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

As of August 31, 2022, the aggregate cost of investments, including any derivatives, on a tax basis includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:


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

KBW Bank ETF		$	7,518,959		$	(596,995,834	)		$	(589,476,875	)		$	2,579,173,069

KBW High Dividend Yield Financial ETF			27,055,219			(51,650,999	)			(24,595,780	)			542,124,993

KBW Premium Yield Equity REIT ETF			12,446,339			(45,407,109	)			(32,960,770	)			361,886,540

KBW Property & Casualty Insurance ETF			4,241,075			(13,697,543	)			(9,456,468	)			215,904,020

KBW Regional Banking ETF			1,173,764			(8,710,780	)			(7,537,016	)			94,728,361

NOTE 7–Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions, taxable overdistributions and real estate investment trust distributions, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended August 31, 2022, the reclassifications were as follows:


	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)				Shares of Beneficial Interest

KBW Bank ETF		$	-		$	(85,577,749	)		$	85,577,749

KBW High Dividend Yield Financial ETF			9,435,197			(18,902,452	)			9,467,255

KBW Premium Yield Equity REIT ETF			7,972,444			(38,518,517	)			30,546,073


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	Undistributed Net			Undistributed Net				Shares of
	Investment Income			Realized Gain (Loss)				Beneficial Interest

KBW Property & Casualty Insurance ETF		$	2,501		$	(2,852,121	)		$	2,849,620

KBW Regional Banking ETF			-			(1,153,375	)			1,153,375

NOTE 8–Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation for the Funds. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to a Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

NOTE 9–Capital

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

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

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.


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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Invesco Exchange-Traded Fund Trust II and Shareholders of Invesco KBW Bank ETF, Invesco KBW High Dividend Yield Financial ETF, Invesco KBW Premium Yield Equity REIT ETF, Invesco KBW Property & Casualty Insurance ETF and Invesco KBW Regional Banking ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Invesco KBW Bank ETF, Invesco KBW High Dividend Yield Financial ETF, Invesco KBW Premium Yield Equity REIT ETF, Invesco KBW Property & Casualty Insurance ETF and Invesco KBW Regional Banking ETF (five of the funds constituting Invesco Exchange-Traded Fund Trust II, hereafter collectively referred to as the “Funds”) as of August 31, 2022, the related statements of operations for the year ended August 31, 2022, the statements of changes in net assets for each of the two years in the period ended August 31, 2022, including the related notes, and the financial highlights for each of the four years in the period ended August 31, 2022, for the ten months in the period ended August 31, 2018 and for the year ended October 31, 2017 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2022, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2022 and each of the financial highlights for each of the four years in the period ended August 31, 2022, for the ten months in the period ended August 31, 2018 and for the year ended October 31, 2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2022 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Chicago, Illinois

October 27, 2022

We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.


		42

Calculating your ongoing Fund expenses

Example

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

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period March 1, 2022 through August 31, 2022.

In addition to the fees and expenses which the Invesco KBW High Dividend Yield Financial ETF (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that the Portfolio bears indirectly are included in the Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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


	Beginning Account Value March 1, 2022			Ending Account Value August 31, 2022			Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
Invesco KBW Bank ETF (KBWB)

Actual		$	1,000.00		$	799.20		0.35	%		$	1.59

Hypothetical (5% return before expenses)			1,000.00			1,023.44		0.35				1.79

Invesco KBW High Dividend Yield Financial ETF (KBWD)

Actual			1,000.00			946.40		0.35				1.72

Hypothetical (5% return before expenses)			1,000.00			1,023.44		0.35				1.79


		43

Calculating your ongoing Fund expenses–(continued)


	Beginning Account Value March 1, 2022			Ending Account Value August 31, 2022			Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
Invesco KBW Premium Yield Equity REIT ETF (KBWY)

Actual		$	1,000.00		$	944.40		0.35	%		$	1.72

Hypothetical (5% return before expenses)			1,000.00			1,023.44		0.35				1.79

Invesco KBW Property & Casualty Insurance ETF (KBWP)

Actual			1,000.00			945.60		0.35				1.72

Hypothetical (5% return before expenses)			1,000.00			1,023.44		0.35				1.79
Invesco KBW Regional Banking ETF (KBWR)

Actual			1,000.00			888.40		0.35				1.67

Hypothetical (5% return before expenses)			1,000.00			1,023.44		0.35				1.79

⁽¹⁾

Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended August 31, 2022. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.


		44

Tax Information

Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended August 31, 2022:


	Qualified Business Income*			Qualified Dividend Income*			Corporate Dividends Received Deduction*			U.S. Treasury Obligations*			Business Interest Income*

Invesco KBW Bank ETF		0	%		100	%		100	%		0	%		0	%

Invesco KBW High Dividend Yield Financial ETF		19	%		16	%		15	%		0	%		0	%

Invesco KBW Premium Yield Equity REIT ETF		57	%		0	%		0	%		0	%		0	%

Invesco KBW Property & Casualty Insurance ETF		0	%		100	%		97	%		0	%		0	%

Invesco KBW Regional Banking ETF		0	%		100	%		100	%		0	%		0	%

* The above percentages are based on ordinary income dividends paid to shareholders during the Trust’s fiscal year.


		45

Trustees and Officers

The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by each Independent Trustee are shown below:

As of August 31, 2022


Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During the Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Ronn R. Bagge–1958 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice Chair of the Board; Chair of the Nominating and Governance Committee and Trustee	Vice Chair since 2018; Chair of the Nominating and Governance Committee and Trustee since 2007	Founder and Principal, YQA Capital Management LLC (1998-Present); formerly, Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).	230	Chair (since 2021) and member (since 2017) of the Joint Investment Committee, Mission Aviation Fellowship and MAF Foundation; Trustee, Mission Aviation Fellowship (2017-Present).

Todd J. Barre–1957 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2010	Assistant Professor of Business, Trinity Christian College (2010-2016); formerly, Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank.	230	None.

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		46

Trustees and Officers–(continued)

Name, Address and Year of
Birth of Independent Trustees

Position(s)
Held

with Trust

Term of
Office

and

Length of
Time
Served*

Principal

Occupation(s) During

the Past 5 Years

Number of
Portfolios

in Fund
Complex**
Overseen by
Independent
Trustees

Other

Directorships

Held by

Independent

Trustees During

the Past 5 Years

Edmund P. Giambastiani,

Jr.–1948

c/o Invesco Capital

Management LLC

3500 Lacey Road, Suite 700 Downers Grove, IL 60515

Trustee

Since 2019

President, Giambastiani Group LLC (national security and energy consulting) (2007-Present); Director, First Eagle Alternative Credit LLC (2020-Present); Advisory Board Member, Massachusetts Institute of Technology Lincoln Laboratory (federally-funded research development) (2010-Present); Defense Advisory Board Member, Lawrence Livermore National Laboratory (2013-Present); formerly, Director, The Boeing Company (2009-2021); Trustee, MITRE Corporation (federally funded research development) (2008-2020); Director, THL Credit, Inc. (alternative credit investment manager) (2016-2020); Chair (2015-2016), Lead Director (2011-2015) and Director (2008-2011), Monster Worldwide, Inc. (career services); United States Navy, career nuclear submarine officer (1970-2007); Seventh Vice Chair of the Joint Chiefs of Staff (2005-2007); first NATO Supreme Allied Commander Transformation (2003-2005); Commander, U.S. Joint Forces Command (2002-2005).

230

Trustee, U.S. Naval Academy Foundation Athletic & Scholarship Program (2010- Present); formerly, Trustee, certain funds of the Oppenheimer Funds complex (2013-2019); Advisory Board Member, Maxwell School of Citizenship and Public Affairs of Syracuse University (2012-2016).

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		47

Trustees and Officers–(continued)

Name, Address and Year of
Birth of Independent Trustees

Position(s)
Held

with Trust

Term of
Office

and

Length of
Time
Served*

Principal

Occupation(s) During

the Past 5 Years

Number of
Portfolios

in Fund
Complex**
Overseen by
Independent
Trustees

Other

Directorships

Held by

Independent

Trustees During

the Past 5 Years

Victoria J. Herget–1951

c/o Invesco Capital Management LLC

3500 Lacey Road, Suite 700 Downers Grove, IL 60515

Trustee

Since 2019

Formerly, Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978), Zurich Scudder Investments (investment adviser) (and its predecessor firms).

230

Trustee (2000- Present) and Chair (2010-2017), Newberry Library; Trustee, Chikaming Open Lands (2014-Present); formerly, Trustee, Mather LifeWays (2001-2021); Trustee, certain funds in the Oppenheimer Funds complex (2012-2019); Board Chair (2008-2015) and Director (2004-2018), United Educators Insurance Company; Independent Director, First American Funds (2003-2011); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010), Wellesley College; Trustee, BoardSource (2006-2009); Trustee, Chicago City Day School (1994-2005).

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		48

Trustees and Officers–(continued)


Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During the Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Marc M. Kole–1960 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chair of the Audit Committee and Trustee	Chair of the Audit Committee since 2008; Trustee since 2007	Formerly, Managing Director of Finance (2020-2021) and Senior Director of Finance (2015-2020), By The Hand Club for Kids (not-for-profit); Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Regional Chief Financial Officer, United Healthcare (2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	230	Formerly, Treasurer (2018-2021), Finance Committee Member (2015-2021) and Audit Committee Member (2015), Thornapple Evangelical Covenant Church; Board and Finance Committee Member (2009-2017) and Treasurer (2010-2015, 2017), NorthPointe Christian Schools.

Yung Bong Lim–1964 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chair of the Investment Oversight Committee and Trustee	Chair of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, RDG Funds LLC (real estate) (2008-Present); formerly, Managing Director, Citadel LLC (1999-2007).	230	Board Director, Beacon Power Services, Corp. (2019-Present); formerly, Advisory Board Member, Performance Trust Capital Partners, LLC (2008-2020).

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		49

Trustees and Officers–(continued)

Name, Address and Year of
Birth of Independent Trustees

Position(s)
Held

with Trust

Term of
Office

and

Length of
Time
Served*

Principal

Occupation(s) During

the Past 5 Years

Number of
Portfolios

in Fund
Complex**
Overseen by
Independent
Trustees

Other

Directorships

Held by

Independent

Trustees During

the Past 5 Years

Joanne Pace–1958

c/o Invesco Capital

Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

Trustee

Since 2019

Formerly, Senior Advisor, SECOR Asset Management, LP (2010-2011); Managing Director and Chief Operating Officer, Morgan Stanley Investment Management (2006-2010); Partner and Chief Operating Officer, FrontPoint Partners, LLC (alternative investments) (2005-2006); Managing Director (2003-2005), Global Head of Human Resources and member of Executive Board and Operating Committee (2004-2005), Global Head of Operations and Product Control (2003-2004), Credit Suisse (investment banking); Managing Director (1997-2003), Controller and Principal Accounting Officer (1999-2003), Chief Financial Officer (temporary assignment) for the Oversight Committee, Long Term Capital Management (1998-1999), Morgan Stanley.

230

Board Director, Horizon Blue Cross Blue Shield of New Jersey (2012- Present); Governing Council Member (2016-Present) and Chair of Education Committee (2017-2021), Independent Directors Council (IDC); Council Member, New York-Presbyterian Hospital’s Leadership Council on Children’s and Women’s Health (2012-Present); formerly, Advisory Board Director, The Alberleen Group LLC (2012-2021); Board Member, 100 Women in Finance (2015-2020); Trustee, certain funds in the Oppenheimer Funds complex (2012-2019); Lead Independent Director and Chair of the Audit and Nominating Committee of The Global Chartist Fund, LLC, Oppenheimer Asset Management (2011-2012); Board Director, Managed Funds Association (2008-2010); Board Director (2007-2010) and Investment Committee Chair (2008-2010), Morgan Stanley Foundation.

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		50

Trustees and Officers–(continued)


Name, Address and Year of Birth of Independent Trustees	Position(s) Held with Trust	Term of Office and Length of Time Served*	Principal Occupation(s) During the Past 5 Years	Number of Portfolios in Fund Complex** Overseen by Independent Trustees	Other Directorships Held by Independent Trustees During the Past 5 Years
Gary R. Wicker–1961 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer, RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005- 2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider); Senior Audit Manager (1994-1997), PricewaterhouseCoopers LLP.	230	Board Member and Treasurer, Our Daily Bread Ministries Canada (2015- Present); Board and Finance Committee Member, West Michigan Youth For Christ (2010- Present).

Donald H. Wilson–1959 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chair of the Board and Trustee	Chair since 2012; Trustee since 2007	Chair, President and Chief Executive Officer, McHenry Bancorp Inc. and McHenry Savings Bank (subsidiary) (2018-Present); formerly, Chair and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-2017); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (advisory services to the financial sector) (2016-2018); Chair, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006).	230	Director, Penfield Children’s Center (2004-Present); Board Chair, Gracebridge Alliance, Inc. (2015-Present).

*	This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		51

Trustees and Officers–(continued)

The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by the Interested Trustee and the other directorships, if any, held by the Interested Trustee are shown below:

Name, Address and Year of
Birth of Interested Trustee

Position(s)
Held

with Trust

Term of
Office

and

Length of
Time
Served*

Principal

Occupation(s) During

the Past 5 Years

Number of
Portfolios

in Fund
Complex**
Overseen by
Interested
Trustee

Other

Directorships

Held by

Interested

Trustee During

the Past 5 Years

Anna Paglia–1974

Invesco Capital

Management LLC

3500 Lacey Road
Suite 700

Downers Grove, IL 60515

Trustee, President and Principal Executive Officer

Trustee since 2022, President and Principal Executive Officer since 2020

President and Principal Executive Officer (2020-Present) and Trustee (2022-Present), Invesco Exchange- Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust; Managing Director and Global Head of ETFs and Indexed Strategies, Chief Executive Officer and Principal Executive Officer, Invesco Capital Management LLC (2020-Present); Chief Executive Officer, Manager and Principal Executive Officer, Invesco Specialized Products, LLC (2020-Present); Vice President, Invesco Indexing LLC (2020-Present); formerly, Secretary, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust (2011-2020), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-2020) and Invesco Exchange-Traded Self-Indexed Fund Trust (2015- 2020); Head of Legal (2010-2020) and Secretary (2015-2020), Invesco Capital Management LLC; Manager and Assistant Secretary, Invesco Indexing LLC (2017-2020); Head of Legal and Secretary, Invesco Specialized Products, LLC (2018-2020); Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); and Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

230

None

*	This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected.

**	Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser.


		52

Trustees and Officers–(continued)


Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During the Past 5 Years
Adrien Deberghes–1967 Invesco Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2020	Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange- Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust (2020-Present); Head of the Fund Office of the CFO, Fund Administration and Vice President, Invesco Advisers, Inc. (2020-Present); Principal Financial Officer, Treasurer and Vice President, The Invesco Funds (2020-Present); formerly, Senior Vice President and Treasurer, Fidelity Investments (2008-2020).

Kelli Gallegos–1970 Invesco Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President and Treasurer	Since 2018	Vice President, Invesco Advisers, Inc. (2020-Present); Principal Financial and Accounting Officer- Pooled Investments, Invesco Specialized Products, LLC (2018-Present); Vice President and Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust (2018-Present); Principal Financial and Accounting Officer-Pooled Investments, Invesco Capital Management LLC (2018-Present); Vice President and Assistant Treasurer (2008-Present), The Invesco Funds; formerly, Principal Financial Officer (2016-2020) and Assistant Vice President (2008-2016), The Invesco Funds; Assistant Treasurer, Invesco Specialized Products, LLC (2018); Assistant Treasurer, Invesco Exchange- Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust (2012-2018), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-2018) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-2018); and Assistant Treasurer, Invesco Capital Management LLC (2013-2018).

Adam Henkel–1980 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2020	Head of Legal and Secretary, Invesco Capital Management LLC and Invesco Specialized Products, LLC (2020-present); Secretary, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange- Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust (2020-Present); Assistant Secretary, Invesco Capital Markets, Inc. (2020-Present); Assistant Secretary, The Invesco Funds (2014-Present); Manager and Assistant Secretary, Invesco Indexing LLC (2020-Present); Assistant Secretary, Invesco Investment Advisers LLC (2020-Present); formerly, Assistant Secretary of Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange- Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-2020); Chief Compliance Officer of Invesco Capital Management LLC (2017); Chief Compliance Officer of Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2017); Senior Counsel, Invesco, Ltd. (2013-2020); Assistant Secretary, Invesco Specialized Products, LLC (2018-2020).

* This is the date each Officer began serving the Trust in their current position. Each Officer serves an indefinite term, until his or her successor is elected.


		53

Trustees and Officers–(continued)


Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During the Past 5 Years
Peter Hubbard–1981 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, Invesco Specialized Products, LLC (2018-Present); Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2009-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Vice President and Director of Portfolio Management, Invesco Capital Management LLC (2010-Present); and Vice President, Invesco Advisers, Inc. (2020-Present); formerly, Vice President of Portfolio Management, Invesco Capital Management LLC (2008-2010); Portfolio Manager, Invesco Capital Management LLC (2007-2008); Research Analyst, Invesco Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005).

Sheri Morris–1964 Invesco Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Head of Global Fund Services, Invesco Ltd. (2019-Present); Vice President, OppenheimerFunds, Inc. (2019-Present); President and Principal Executive Officer, The Invesco Funds (2016-Present); Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2020-Present); Director, Invesco Trust Company (2022-Present) and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2012-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); formerly, Treasurer (2008-2020), Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange- Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Treasurer, Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Vice President, Invesco Advisers, Inc. (2009-2020).

Rudolf E. Reitmann–1971 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Head of Global Exchange Traded Funds Services, Invesco Specialized Products, LLC (2018-Present); Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2013-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Head of Global Exchange Traded Funds Services, Invesco Capital Management LLC (2013-Present); Vice President, Invesco Capital Markets, Inc. (2018-Present).

* This is the date each Officer began serving the Trust in their current position. Each Officer serves an indefinite term, until his or her successor is elected.


		54

Trustees and Officers–(continued)

Name, Address and Year of Birth
of Executive Officers

Position(s)
Held

with Trust

Length of
Time
Served*

Principal

Occupation(s) During

the Past 5 Years

Melanie Zimdars–1976

Invesco Capital

Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

Chief Compliance Officer

Since 2017

Chief Compliance Officer, Invesco Specialized Products, LLC (2018-Present); Chief Compliance Officer, Invesco Capital Management LLC (2017-Present); Chief Compliance Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange- Traded Self-Indexed Fund Trust (2017-Present); formerly, Vice President and Deputy Chief Compliance Officer, ALPS Holding, Inc. (2009-2017); Mutual Fund Treasurer/ Chief Financial Officer, Wasatch Advisors, Inc. (2005-2008); Compliance Officer, U.S. Bancorp Fund Services, LLC (2001-2005).

*	This is the date each Officer began serving the Trust in their current position. Each Officer serves an indefinite term, until his or her successor is elected.

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.


		55

Approval of Investment Advisory and Sub-Advisory Contracts

At a meeting held on April 6, 2022, the Board of Trustees of the Invesco Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco Capital Management LLC (the “Adviser”) and the Trust for the following 74 series (each, a “Fund” and collectively, the “Funds”):


Invesco 1-30 Laddered Treasury ETF		Invesco Russell 1000 Low Beta Equal Weight ETF
Invesco California AMT-Free Municipal Bond ETF		Invesco S&P 500^® Enhanced Value ETF
Invesco CEF Income Composite ETF		Invesco S&P 500^® ex-Rate Sensitive Low Volatility ETF
Invesco China Technology ETF		Invesco S&P 500^® High Beta ETF
Invesco DWA Developed Markets Momentum ETF		Invesco S&P 500^® High Dividend Low Volatility ETF
Invesco DWA Emerging Markets Momentum ETF		Invesco S&P 500^® Low Volatility ETF
Invesco DWA SmallCap Momentum ETF		Invesco S&P 500 Minimum Variance ETF
Invesco Emerging Markets Sovereign Debt ETF		Invesco S&P 500^® Momentum ETF
Invesco FTSE International Low Beta Equal Weight ETF		Invesco S&P 500 Revenue ETF
Invesco FTSE RAFI Developed Markets ex-U.S. ETF		Invesco S&P Emerging Markets Low Volatility ETF
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF		Invesco S&P Emerging Markets Momentum ETF
Invesco FTSE RAFI Emerging Markets ETF		Invesco S&P International Developed High Dividend Low
Invesco Fundamental High Yield^® Corporate Bond ETF		Volatility ETF
Invesco Fundamental Investment Grade Corporate Bond ETF		Invesco S&P International Developed Low Volatility ETF
Invesco Global Clean Energy ETF		Invesco S&P International Developed Momentum ETF
Invesco Global Short Term High Yield Bond ETF		Invesco S&P International Developed Quality ETF
Invesco Global Water ETF		Invesco S&P MidCap 400 Revenue ETF
Invesco International BuyBack Achievers^™ ETF		Invesco S&P MidCap Low Volatility ETF
Invesco International Corporate Bond ETF		Invesco S&P SmallCap 600 Revenue ETF
Invesco KBW Bank ETF		Invesco S&P SmallCap Consumer Discretionary ETF
Invesco KBW High Dividend Yield Financial ETF		Invesco S&P SmallCap Consumer Staples ETF
Invesco KBW Premium Yield Equity REIT ETF		Invesco S&P SmallCap Energy ETF
Invesco KBW Property & Casualty Insurance ETF		Invesco S&P SmallCap Financials ETF
Invesco KBW Regional Banking ETF		Invesco S&P SmallCap Health Care ETF
Invesco MSCI Green Building ETF		Invesco S&P SmallCap High Dividend Low Volatility ETF
Invesco NASDAQ 100 ETF		Invesco S&P SmallCap Industrials ETF
Invesco NASDAQ Next Gen 100 ETF		Invesco S&P SmallCap Information Technology ETF
Invesco National AMT-Free Municipal Bond ETF		Invesco S&P SmallCap Low Volatility ETF
Invesco New York AMT-Free Municipal Bond ETF		Invesco S&P SmallCap Materials ETF
Invesco Preferred ETF		Invesco S&P SmallCap Quality ETF
Invesco PureBeta^SM 0-5 Yr US TIPS ETF		Invesco S&P SmallCap Utilities & Communication Services ETF
Invesco PureBeta^SM FTSE Developed ex-North America ETF		Invesco S&P Ultra Dividend Revenue ETF
Invesco PureBeta^SM FTSE Emerging Markets ETF		Invesco Senior Loan ETF
Invesco PureBeta^SM MSCI USA ETF		Invesco Taxable Municipal Bond ETF
Invesco PureBeta^SM MSCI USA Small Cap ETF		Invesco Treasury Collateral ETF
Invesco PureBeta^SM US Aggregate Bond ETF		Invesco Variable Rate Preferred ETF
Invesco Russell 1000 Enhanced Equal Weight ETF		Invesco VRDO Tax-Free ETF
Invesco Russell 1000 Equal Weight ETF

Also at the April 6, 2022 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following seven affiliated sub-advisers for each of Invesco Senior Loan ETF and Invesco Treasury Collateral ETF (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

Investment Advisory Agreement

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the fees paid by the Funds and comparisons to amounts paid by other


		56

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

comparable registered investment companies, (iv) the costs of services provided and estimated profits realized by the Adviser, (v) the extent to which economies of scale may be realized as a Fund grows and whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders and (vi) any further benefits realized by the Adviser or its affiliates from the Adviser’s relationship with the Funds.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. (“Invesco”), and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2021, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error and correlation between certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s independent performance and risk management group with respect to general expected tracking error ranges. The Trustees also considered that certain Funds were created in connection with the purchases by Invesco of the exchange-traded funds (“ETFs”) businesses of Guggenheim Capital LLC (“Guggenheim”) on April 6, 2018 or May 18, 2018 and Massachusetts Mutual Life Insurance Company (“Oppenheimer”) on May 24, 2019 (each, a “Transaction”), and that each such Fund’s performance prior to the closing of the applicable Transaction is that of its predecessor Guggenheim ETF or Oppenheimer ETF. The Trustees noted that, for each applicable period, the correlation for each Fund, other than the one-year and since-inception periods for Invesco VRDO Tax-Free ETF and the one-year period for Invesco Treasury Collateral ETF, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for Invesco VRDO Tax-Free ETF’s and Invesco Treasury Collateral ETF’s level of correlation to their respective underlying indexes. The Trustees noted that, for each applicable period, the tracking error for all Funds was within the targeted range set forth in the Trust’s registration statement. The Trustees concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent, and its oversight of the Sub-Advisers for Invesco Senior Loan ETF and Invesco Treasury Collateral ETF. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

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

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary advisory fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for Invesco Senior Loan ETF and Invesco Treasury Collateral ETF, except that each Fund pays its brokerage expenses, taxes, interest (including, for Invesco Senior Loan ETF, interest expenses associated with any draws on its line of credit), acquired fund fees and expenses, if any, litigation expenses, costs incurred in connection with proxies (except certain proxies) and other extraordinary expenses:

●

0.04% of the Fund’s average daily net assets for Invesco PureBeta^SM MSCI USA ETF;

●

0.05% of the Fund’s average daily net assets for Invesco PureBeta^SM US Aggregate Bond ETF;

●

0.06% of the Fund’s average daily net assets for Invesco PureBeta^SM MSCI USA Small Cap ETF;

●

0.07% of the Fund’s average daily net assets for Invesco PureBeta^SM 0-5 Yr US TIPS ETF and Invesco PureBeta^SM FTSE Developed ex-North America ETF;

●

0.08% of the Fund’s average daily net assets for Invesco Treasury Collateral ETF;

●

0.10% of the Fund’s average daily net assets for Invesco S&P 500 Minimum Variance ETF;

●

0.13% of the Fund’s average daily net assets for Invesco S&P 500 Enhanced Value ETF and Invesco S&P 500 Momentum ETF;


		57

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

●

0.14% of the Fund’s average daily net assets for Invesco PureBeta^SM FTSE Emerging Markets ETF;

●

0.15% of the Fund’s average daily net assets for Invesco NASDAQ 100 ETF and Invesco NASDAQ Next Gen 100 ETF;

●

0.20% of the Fund’s average daily net assets for Invesco Russell 1000 Equal Weight ETF;

●

0.22% of the Fund’s average daily net assets for Invesco Fundamental Investment Grade Corporate Bond ETF;

●

0.25% of the Fund’s average daily net assets for Invesco 1-30 Laddered Treasury ETF, Invesco S&P 500^® ex-Rate Sensitive Low Volatility ETF, Invesco S&P 500^® High Beta ETF, Invesco S&P 500^® Low Volatility ETF, Invesco S&P International Developed Low Volatility ETF, Invesco S&P International Developed Momentum ETF, Invesco S&P MidCap Low Volatility ETF, Invesco S&P SmallCap Low Volatility ETF and Invesco VRDO Tax-Free ETF;

●

0.28% of the Fund’s average daily net assets for Invesco California AMT-Free Municipal Bond ETF, Invesco National AMT-Free Municipal Bond ETF, Invesco New York AMT-Free Municipal Bond ETF and Invesco Taxable Municipal Bond ETF;

●

0.29% of the Fund’s average daily net assets for Invesco Russell 1000 Enhanced Equal Weight ETF, Invesco S&P Emerging Markets Momentum ETF, Invesco S&P Emerging Markets Low Volatility ETF, Invesco S&P International Developed Quality ETF, Invesco S&P SmallCap Consumer Discretionary ETF, Invesco S&P SmallCap Consumer Staples ETF, Invesco S&P SmallCap Energy ETF, Invesco S&P SmallCap Financials ETF, Invesco S&P SmallCap Health Care ETF, Invesco S&P SmallCap Industrials ETF, Invesco S&P SmallCap Information Technology ETF, Invesco S&P SmallCap Materials ETF, Invesco S&P SmallCap Quality ETF and Invesco S&P SmallCap Utilities & Communication Services ETF;

●

0.30% of the Fund’s average daily net assets for Invesco S&P 500^® High Dividend Low Volatility ETF, Invesco S&P SmallCap High Dividend Low Volatility ETF and Invesco S&P International Developed High Dividend Low Volatility ETF;

●

0.35% of the Fund’s average daily net assets for Invesco Global Short Term High Yield Bond ETF, Invesco KBW Bank ETF, Invesco KBW High Dividend Yield Financial ETF, Invesco KBW Premium Yield Equity REIT ETF, Invesco KBW Property & Casualty Insurance ETF, Invesco KBW Regional Banking ETF and Invesco Russell 1000 Low Beta Equal Weight ETF;

●

0.39% of the Fund’s average daily net assets for Invesco MSCI Green Building ETF, Invesco S&P 500 Revenue ETF, Invesco S&P MidCap 400 Revenue ETF, Invesco S&P SmallCap 600 Revenue ETF and Invesco S&P Ultra Dividend Revenue ETF;

●

0.45% of the Fund’s daily net assets for Invesco FTSE International Low Beta Equal Weight ETF and Invesco FTSE RAFI Developed Markets ex-U.S. ETF;

●

0.49% of the Fund’s daily net assets for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF and Invesco FTSE RAFI Emerging Markets ETF;

●

0.50% of the Fund’s daily net assets for Invesco CEF Income Composite ETF, Invesco Emerging Markets Sovereign Debt ETF, Invesco Fundamental High Yield^® Corporate Bond ETF, Invesco International Corporate Bond ETF, Invesco Preferred ETF and Invesco Variable Rate Preferred ETF;

●

0.55% of the Fund’s daily net assets for Invesco International BuyBack Achievers^TM ETF;

●

0.60% of the Fund’s daily net assets for Invesco DWA SmallCap Momentum ETF;

●

0.65% of the Fund’s daily net assets for Invesco Senior Loan ETF;

●

0.70% of the Fund’s daily net assets for Invesco China Technology ETF;

●

0.75% of the Fund’s daily net assets for Invesco Global Clean Energy ETF and Invesco Global Water ETF;

●

0.80% of the Fund’s daily net assets for Invesco DWA Developed Markets Momentum ETF; and

●

0.90% of the Fund’s daily net assets for Invesco DWA Emerging Markets Momentum ETF.

The Trustees compared each Fund’s net expense ratio to information compiled by the Adviser from Lipper Inc. (“Lipper”) databases on the net expense ratios of comparable ETFs, open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds, as applicable. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds, as applicable, as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their


		58

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

open-end actively-managed peer funds. The Trustees noted that a portion of each Fund’s operating expenses was attributable to a sub-license fee payable out of the unitary advisory fee charged to that Fund.

Invesco Fund

Equal
to/Lower
than ETF
Peer Median

Equal to/Lower
than Open-End
Index Fund
Peer Median*

Lower than
Open-End
Active Fund
Peer Median

Invesco 1-30 Laddered Treasury ETF

Invesco California AMT-Free Municipal Bond ETF

N/A

Invesco CEF Income Composite ETF

N/A

Invesco China Technology ETF

N/A

Invesco DWA Developed Markets Momentum ETF

Invesco DWA Emerging Markets Momentum ETF

Invesco DWA SmallCap Momentum ETF

Invesco Emerging Markets Sovereign Debt ETF

Invesco FTSE International Low Beta Equal Weight ETF

Invesco FTSE RAFI Developed Markets ex-U.S. ETF

Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF

Invesco FTSE RAFI Emerging Markets ETF

Invesco Fundamental High Yield^® Corporate Bond ETF

Invesco Fundamental Investment Grade Corporate Bond ETF

Invesco Global Clean Energy ETF

Invesco Global Short Term High Yield Bond ETF

N/A

Invesco Global Water ETF

Invesco International BuyBack Achievers^TM ETF

Invesco International Corporate Bond ETF

Invesco KBW Bank ETF

Invesco KBW High Dividend Yield Financial ETF

Invesco KBW Premium Yield Equity REIT ETF

Invesco KBW Property & Casualty Insurance ETF

Invesco KBW Regional Banking ETF

Invesco MSCI Green Building ETF

Invesco NASDAQ 100 ETF

Invesco NASDAQ Next Gen 100 ETF

Invesco National AMT-Free Municipal Bond ETF

Invesco New York AMT-Free Municipal Bond ETF

N/A

Invesco Preferred ETF

N/A

Invesco PureBeta^SM 0-5 Yr US TIPS ETF

Invesco PureBeta^SM FTSE Developed ex-North America ETF

Invesco PureBeta^SM FTSE Emerging Markets ETF

Invesco PureBeta^SM MSCI USA ETF

Invesco PureBeta^SM MSCI USA Small Cap ETF

Invesco PureBeta^SM US Aggregate Bond ETF

Invesco Russell 1000 Enhanced Equal Weight ETF

Invesco Russell 1000 Equal Weight ETF

Invesco Russell 1000 Low Beta Equal Weight ETF

Invesco S&P 500 Enhanced Value ETF

Invesco S&P 500^® ex-Rate Sensitive Low Volatility ETF

Invesco S&P 500^® High Beta ETF

Invesco S&P 500^® High Dividend Low Volatility ETF


		59

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

Invesco Fund

Equal
to/Lower
than ETF
Peer Median

Equal to/Lower
than Open-End
Index Fund
Peer Median*

Lower than
Open-End
Active Fund
Peer Median

Invesco S&P 500^® Low Volatility ETF

Invesco S&P 500 Minimum Variance ETF

Invesco S&P 500 Momentum ETF

Invesco S&P 500 Revenue ETF

Invesco S&P Emerging Markets Low Volatility ETF

Invesco S&P Emerging Markets Momentum ETF

Invesco S&P International Developed High Dividend Low Volatility ETF

Invesco S&P International Developed Low Volatility ETF

Invesco S&P International Developed Momentum ETF

N/A

Invesco S&P International Developed Quality ETF

N/A

Invesco S&P MidCap 400 Revenue ETF

Invesco S&P MidCap Low Volatility ETF

Invesco S&P SmallCap 600 Revenue ETF

Invesco S&P SmallCap Consumer Discretionary ETF

Invesco S&P SmallCap Consumer Staples ETF

Invesco S&P SmallCap Energy ETF

Invesco S&P SmallCap Financials ETF

Invesco S&P SmallCap Health Care ETF

Invesco S&P SmallCap High Dividend Low Volatility ETF

Invesco S&P SmallCap Industrials ETF

Invesco S&P SmallCap Information Technology ETF

Invesco S&P SmallCap Low Volatility ETF

Invesco S&P SmallCap Materials ETF

Invesco S&P SmallCap Quality ETF

Invesco S&P SmallCap Utilities & Communication Services ETF

Invesco S&P Ultra Dividend Revenue ETF

Invesco Senior Loan ETF

N/A

Invesco Taxable Municipal Bond ETF

N/A

Invesco Treasury Collateral ETF

Invesco Variable Rate Preferred ETF

Invesco VRDO Tax-Free ETF

N/A

*	The information provided by the Adviser indicated that certain Funds did not have any comparable open-end index fund peers. Those Funds have been designated in this column with an “N/A” for not available.

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of Invesco 1-30 Laddered Treasury ETF, Invesco California AMT-Free Municipal Bond ETF, Invesco DWA Developed Markets Momentum ETF, Invesco Global Clean Energy ETF, Invesco International Corporate Bond ETF, Invesco National AMT-Free Municipal Bond ETF, Invesco New York AMT-Free Municipal Bond ETF and Invesco VRDO Tax-Free ETF’s advisory fees and total expenses and the Lipper peer data. The Adviser explained its view that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, particularly in light of the level and nature of services provided and the investment management style of the Adviser. The Trustees also considered the Adviser’s statements regarding its pricing philosophy and the differing pricing philosophy of certain of the peers.

The Trustees noted information, including fee information, provided by the Adviser regarding other investment products to which it provides investment advisory services, including products that have investment strategies comparable to certain of the Funds. The Trustees considered the Adviser’s explanation of the differences between the services provided to the Funds and to the other investment products it advises, noting the Adviser’s statement that the management and oversight of the Funds requires substantially more labor and expense.


		60

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

Based on all of the information provided, the Board concluded that each Fund’s unitary advisory fee was reasonable and appropriate in light of the services provided, the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser.

In conjunction with their review of the unitary advisory fees, the Trustees considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds. The Trustees reviewed information provided by the Adviser on its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale may be realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and unitary advisory fee. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary advisory fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the unitary advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund and concluded that the unitary advisory fee was reasonable and appropriate.

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

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

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for each of Invesco Senior Loan ETF and Invesco Treasury Collateral ETF at a meeting held on April 6, 2022. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided to Invesco Senior Loan ETF and Invesco Treasury Collateral ETF under the Sub-Advisory Agreement. The Board reviewed the qualifications and background of each Sub-Adviser, the services provided or to be provided by each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage Invesco Senior Loan ETF’s and Invesco Treasury Collateral ETF’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Funds, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to Invesco Senior Loan ETF and Invesco Treasury Collateral ETF under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rates under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fees charged by the Sub-Advisers under the Sub-Advisory Agreement are consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for each of Invesco Senior Loan ETF and Invesco Treasury Collateral ETF and noted that the Adviser compensates the Sub-Advisers from its fee.


		61

Approval of Investment Advisory and Sub-Advisory Contracts–(continued)

The Trustees also reviewed the financial statements provided by Invesco Senior Secured Management, Inc., in connection with the March 15 and April 6, 2022 Board meetings, and Invesco Advisers, Inc., in connection with the April 6, 2022 meeting, and noted the net income generated by each firm. The Trustees noted that the Adviser compensates the Sub-Advisers from its fee and that the Adviser provided profitability information with respect to Invesco Senior Loan ETF and Invesco Treasury Collateral ETF.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for Invesco Senior Loan ETF and Invesco Treasury Collateral ETF, the Trustees considered the extent to which economies of scale may be realized as the Funds grow and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rates for Invesco Senior Loan ETF and Invesco Treasury Collateral ETF were reasonable in relation to the asset size of the Funds and concluded that the flat sub-advisory fee rates were reasonable and appropriate.

Fall-out Benefits. The Trustees noted that Invesco Advisers, Inc. receives management fees from money market funds into which the Funds’ and other Invesco ETFs’ excess cash and securities lending collateral may be invested, and that the Adviser waives its fees with respect to each Fund in an amount equal to the fees received by Invesco Advisers, Inc. on the Fund’s excess cash invested in the money market funds. The Trustees also noted the fees received by Invesco Advisers, Inc. in its capacity as the direct securities lending agent for the Invesco ETFs. The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with Invesco Senior Loan ETF and Invesco Treasury Collateral ETF, and that the Sub-Advisers generally do not use or generate soft-dollars with respect to the Funds. The Board concluded that the sub-advisory fee with respect to each Fund was reasonable, taking into account any ancillary benefits received by the Sub-Advisers.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for Invesco Senior Loan ETF and Invesco Treasury Collateral ETF. No single factor was determinative in the Board’s analysis.


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Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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


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