LOGO   

 

Invesco Annual Report to Shareholders

 

April 30, 2023

 

   PYZ   Invesco DWA Basic Materials Momentum ETF
   PEZ   Invesco DWA Consumer Cyclicals Momentum ETF
   PSL   Invesco DWA Consumer Staples Momentum ETF
   PXI   Invesco DWA Energy Momentum ETF
   PFI   Invesco DWA Financial Momentum ETF
   PTH   Invesco DWA Healthcare Momentum ETF
   PRN   Invesco DWA Industrials Momentum ETF
   PTF   Invesco DWA Technology Momentum ETF
   PUI   Invesco DWA Utilities Momentum ETF
   PNQI   Invesco NASDAQ Internet ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      4  
Liquidity Risk Management Program      33  
Schedules of Investments   

Invesco DWA Basic Materials Momentum ETF (PYZ)

     34  

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

     36  

Invesco DWA Consumer Staples Momentum ETF (PSL)

     38  

Invesco DWA Energy Momentum ETF (PXI)

     40  

Invesco DWA Financial Momentum ETF (PFI)

     42  

Invesco DWA Healthcare Momentum ETF (PTH)

     44  

Invesco DWA Industrials Momentum ETF (PRN)

     46  

Invesco DWA Technology Momentum ETF (PTF)

     48  

Invesco DWA Utilities Momentum ETF (PUI)

     50  

Invesco NASDAQ Internet ETF (PNQI)

     52  
Statements of Assets and Liabilities      55  
Statements of Operations      57  
Statements of Changes in Net Assets      59  
Financial Highlights      63  
Notes to Financial Statements      70  
Report of Independent Registered Public Accounting Firm      82  
Fund Expenses      83  
Tax Information      85  
Trustees and Officers      86  
Approval of Investment Advisory Contracts      97  

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

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 the second quarter of 2022 amid substantial inflation, rising interest rates and an increasing likelihood of a US recession. Driven by higher food and energy prices, the Consumer Price Index (CPI) rose 8.6% for the 12 months ended May 2022.1 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 US Federal Reserve (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 represented the largest series of increases in nearly 30 years.3 US equity markets rose in July and August until Fed chairman Jerome Powell’s hawkish comments at an economic policy symposium held in Jackson Hole, Wyoming, which sparked a sharp selloff at month-end. The Fed reiterated that it would continue taking aggressive action to curb inflation, even though such measures could “bring pain to households and businesses,” and the Fed raised the benchmark federal funds rate by another 0.75% in September.3

After experiencing a sharp drop in September 2022, US equity markets rebounded in October and November, despite mixed data on the economy and corporate earnings. However, the Fed’s message of continued rate hikes until data showed inflation meaningfully declining, sent markets lower in December. As energy prices declined the rate of inflation slowed modestly in the fourth quarter. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target benchmark federal funds rate by 0.75% in November and by 0.50% in December.3

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff, as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the likelihood of a recession and the risk of a deeper recession than initially anticipated. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread to other sectors sent investors to safe haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the benchmark federal funds rate by just 0.25% in February and March 2023, a slower pace than in 2022.3 The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil. Markets stabilized in April due to milder inflation data and better-than-expected corporate earnings. For the 12 months ending March 31, 2023, the CPI came in at 5%, the smallest 12-month increase since the period ending May 2021.1 The March month-

over-month CPI rose by 0.1%, a decline from an increase of 0.4% in February.1 The labor market remained tight and the unemployment rate held at a historically low 3.5%.2 As corporate earnings season got underway, a number of companies, including some big tech names provided optimistic future guidance.

In this environment, US stocks for the fiscal year ended April 30, 2023, had returns of 2.66%, as 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.

Global Equity

Global equity markets declined at the beginning of the fiscal year as record inflation, rising interest rates, recession fears and Russia’s invasion of Ukraine led to generally weaker consumer sentiment around the globe. To tame inflation, Western central banks raised interest rates, which was in contrast to some central banks in the East, that lowered their policy rate or kept rates the same. Inflation headwinds continued into the third quarter of 2022, with several central banks continuing to raise interest rates to combat inflation.

Global equity markets posted gains for the fourth quarter of 2022, after better inflation data sparked a rally in October and November. However, investor sentiment worsened in December after central banks signaled continued interest rate hikes into 2023, as inflation remained above target levels. International stocks outperformed US stocks, led by results in the UK and the rest of Europe. Emerging market equities also posted gains for the fourth quarter, driven by China, which eased its zero-COVID-19 policy and started to reopen.

For the first quarter of 2023, global equity markets managed to deliver gains despite volatility and a banking crisis. January’s rally gave way to mixed global equity results in February, as inflation appeared more persistent than expected, boosting expectations that interest rates may stay higher for longer. The quarter’s largest shock came in March as the failure of two US regional banks, Silicon Valley Bank and Signature Bank, along with the subsequent UBS takeover of Credit Suisse, led to a selloff in US and European financial stocks. Amid the banking turmoil, some global central banks continued to raise interest rates to fight inflation. Though they lagged international developed market equities, emerging market equities also delivered gains for the quarter.

In April 2023, developed market equities posted a modest gain supported by positive economic data, while emerging market equities declined for the month. Within emerging markets, the Chinese equity market was negatively affected by renewed geopolitical tensions between the US and China. For the fiscal year ended April 30, 2023, developed market equities posted a positive return, outperforming emerging market equities, which ended the period in negative territory.

 

 

  3  

 


 

 

PYZ    Management’s Discussion of Fund Performance
   Invesco DWA Basic Materials Momentum ETF (PYZ)

 

As an index fund, the Invesco DWA Basic Materials Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Basic Materials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the basic materials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the basic materials sector for inclusion in the Index. Companies in the basic materials sector are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (9.74)%. On a net asset value (“NAV”) basis, the Fund returned (9.61)%. During the same time period, the Index returned (9.13)%. 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® Materials Index (the “Benchmark Index”) returned (3.03)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 29 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the materials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the steel and commodity chemicals sub-industries and most underweight in the industrial gases and specialty chemicals sub-industries during the fiscal year ended April 30, 2023. 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 industrial gases sub-industry, and the stock selection within the fertilizers and agricultural chemicals sub-industry.

For the fiscal year ended April 30, 2023, the metal, glass & plastic containers sub-industry contributed most significantly to the Fund’s return, followed by the industrial gases sub-industry. Fertilizers and agricultural chemicals and diversified chemicals were the largest detractors.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included O-I Glass Inc., a metal, glass & plastic containers company (portfolio average weight of 1.21%), and Air Products and Chemicals, Inc., an industrial gases company (portfolio average weight of 2.79%). Positions that detracted most significantly from the Fund’s return during this period included Intrepid Potash, Inc., a fertilizers and agricultural chemicals company (no longer held at fiscal year-end), and Cleveland-Cliffs Inc., a steel company (portfolio average weight of 2.10%).

 

 

  4  

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Steel      28.91  
Commodity Chemicals      15.29  
Specialty Chemicals      14.70  
Fertilizers & Agricultural Chemicals      8.97  
Industrial Gases      4.07  
Diversified Metals & Mining      3.77  
Paper & Plastic Packaging Products & Materials      3.74  
Sub-Industry Types Each Less than 3%      20.56  
Money Market Funds Plus Other Assets Less Liabilities      (0.01)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Olin Corp.      4.40  
Air Products and Chemicals, Inc.      4.07  
Corteva, Inc.      3.94  
Steel Dynamics, Inc.      3.76  
Avery Dennison Corp.      3.74  
Reliance Steel & Aluminum Co.      3.50  
Nucor Corp.      3.31  
Scotts Miracle-Gro Co. (The)      3.04  
Carpenter Technology Corp.      2.85  
United States Steel Corp.      2.74  
Total      35.35  

 

*

Excluding money market fund holdings.

 

 

  5  

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Basic Materials Technical Leaders Index     (9.13 )%      21.76     80.50     6.05     34.17     8.41     124.25       9.44     345.05
S&P 500® Materials Index     (3.03     18.13       64.84       9.53       57.67       9.66       151.44         8.08       261.58  
Fund                    
NAV Return     (9.61     21.03       77.28       5.39       30.03       7.71       110.17         8.62       292.86  
Market Price Return     (9.74     20.91       76.74       5.36       29.85       7.73       110.53         8.62       292.83  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Basic Materials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Basic Materials Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  6  

 


 

 

PEZ    Management’s Discussion of Fund Performance
   Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

 

As an index fund, the Invesco DWA Consumer Cyclicals Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Consumer Cyclicals Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the consumer discretionary (or cyclicals) sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the consumer discretionary sector for inclusion in the Index. Companies in the consumer discretionary sector are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and home construction and furnishing.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (1.40)%. On a net asset value (“NAV”) basis,

the Fund returned (1.25)%. During the same time period, the Index returned (0.77)%. 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® Consumer Discretionary Index (the “Benchmark Index”) returned (8.48)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 53 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the consumer discretionary sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track the Index, which employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the automotive retail sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight in the automobile manufacturers sub-industry and overweight allocation to and security selection in the automotive retail sub-industry.

For the fiscal year ended April 30, 2023, the automotive retail sub-industry contributed most significantly to the Fund’s return followed by the other specialty retail sub-industry. The hotels, resorts & cruise lines sub-industry detracted most significantly from the Fund’s return, followed by the leisure facilities sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included O’Reilly Automotive, Inc., an automotive retail company (no longer held at fiscal year-end), and Deckers Outdoor Corp., a footwear company (portfolio average weight of 1.69%). Positions that detracted most significantly from the Fund’s return during this period included SeaWorld Entertainment, Inc., a leisure facilities company (average portfolio weight of 1.42%), and Domino’s Pizza, Inc., a restaurants company (no longer held at fiscal year-end).

 

 

  7  

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Other Specialty Retail      21.90  
Restaurants      9.47  
Automotive Retail      8.02  
Movies & Entertainment      6.21  
Home Improvement Retail      6.09  
Home Furnishings      5.16  
Apparel, Accessories & Luxury Goods      4.92  
Leisure Facilities      4.78  
Homebuilding      4.78  
Casinos & Gaming      4.70  
Hotels Resorts & Cruise Lines      4.59  
Consumer Staples Merchandise Retail      3.61  
Footwear      3.45  
Sub-Industry Types Each Less than 3%      12.24  
Money Market Funds Plus Other Assets Less Liabilities      0.08  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Dick’s Sporting Goods, Inc.      6.31  
Tempur Sealy International, Inc.      4.25  
Five Below, Inc.      4.09  
AutoNation, Inc.      3.99  
BJ’s Wholesale Club Holdings, Inc.      3.61  
Home Depot, Inc. (The)      3.57  
World Wrestling Entertainment, Inc., Class A      3.52  
Deckers Outdoor Corp.      3.45  
Tractor Supply Co.      3.42  
Tapestry, Inc.      3.41  
Total      39.62  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Consumer Cyclicals Technical Leaders Index     (0.77 )%      19.39     70.17     7.44     43.18     8.35     122.92       7.43     227.49
S&P 500® Consumer Discretionary Index     (8.48     7.29       23.49       7.99       46.87       11.70       202.32         10.24       401.77  
Fund                    
NAV Return     (1.25     18.84       67.83       6.89       39.55       7.75       111.02         6.83       198.29  
Market Price Return     (1.40     18.83       67.81       6.88       39.47       7.77       111.34         6.83       198.56  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.73% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Consumer Cyclicals Technical LeadersTM Index performance is comprised of the performance of the Dynamic Consumer Discretionary Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  9  

 


 

 

PSL    Management’s Discussion of Fund Performance
   Invesco DWA Consumer Staples Momentum ETF (PSL)

 

As an index fund, the Invesco DWA Consumer Staples Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Consumer Staples Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the consumer staples sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the consumer staples sector for inclusion in the Index. Companies in the consumer staples sector are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverages, and non-discretionary retail goods and services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned 7.44%. On a net asset value (“NAV”) basis, the Fund returned 7.34%. During the same time period, the Index returned 8.01%. 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® Consumer Staples Index (the “Benchmark Index”) returned 2.24%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 37 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the consumer staples sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the food distributors sub-industry and most underweight in the consumer staples merchandise retail sub-industry during the fiscal year ended April 30, 2023. 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 personal care products and the soft drinks & non-alcoholic beverages sub-industries.

For the fiscal year ended April 30, 2023, the personal care products sub-industry contributed most significantly to the Fund’s return, followed by the soft drinks & non-alcoholic beverages sub-industry. The household products sub-industry detracted most significantly from the Fund’s return, followed by the tobacco sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included e.l.f. Beauty, Inc., a personal care products company (portfolio average weight of 2.46%), and Celsius Holdings, Inc., a soft drinks & non-alcoholic beverages company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Spectrum Brands Holdings, Inc., a household products company (no longer held at fiscal year-end), and Freshpet Inc., a packaged foods & meats company (no longer held at fiscal year-end).

 

 

  10  

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Packaged Foods & Meats      31.19  
Food Distributors      14.10  
Soft Drinks & Non-alcoholic Beverages      13.95  
Personal Care Products      11.83  
Food Retail      10.18  
Specialized Consumer Services      4.45  
Education Services      4.01  
Household Products      3.96  
Agricultural Products & Services      3.30  
Tobacco      3.03  
Money Market Funds Plus Other Assets Less Liabilities      0.00  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
elf Beauty, Inc.      4.45  
Service Corp. International      4.45  
Hershey Co. (The)      4.18  
Lamb Weston Holdings, Inc.      4.12  
Performance Food Group Co.      4.05  
Procter & Gamble Co. (The)      3.96  
US Foods Holding Corp.      3.84  
PepsiCo, Inc.      3.82  
Coty, Inc., Class A      3.77  
Keurig Dr Pepper, Inc.      3.75  
Total      40.39  

 

*

Excluding money market fund holdings.

 

 

  11  

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended—Dorsey Wright® Consumer Staples Technical Leaders Index     8.01     15.56     54.33     7.43     43.07     10.29     166.20       10.06     388.37
S&P 500® Consumer Staples Index     2.24       13.51       46.26       12.40       79.42       9.67       151.74         10.11       392.58  
Fund                    
NAV Return     7.34       15.02       52.18       6.86       39.35       9.65       151.19         9.37       340.42  
Market Price Return     7.44       15.04       52.26       6.79       38.89       9.65       151.35         9.37       340.33  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.73% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended—Dorsey Wright® Consumer Staples Technical LeadersTM Index performance is comprised of the performance of the Dynamic Consumer Staples Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  12  

 


 

 

PXI    Management’s Discussion of Fund Performance
   Invesco DWA Energy Momentum ETF (PXI)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the energy sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the energy sector for inclusion in the Index. Companies in the energy sector are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (4.50)%. On a net asset value (“NAV”) basis, the Fund returned (4.42)%. During the same time period, the

Index returned (3.98)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Energy Index (the “Benchmark Index”) returned 19.22%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 23 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the energy sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas exploration & production sub-industry and most underweight in the integrated oil & gas sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to an overweight allocation to and security selection in the oil & gas exploration & production sub-industry and an underweight allocation to the integrated oil & gas sub-industry.

For the fiscal year ended April 30, 2023, the integrated oil & gas sub-industry contributed most significantly to the Fund’s return. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Weatherford International plc, an oil & gas equipment & services company (portfolio average weight of 2.81%), and CONSOL Energy Inc., a coal & consumable fuels company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Ovintiv Inc., an oil & gas exploration & production company (no longer held at fiscal year-end), and Patterson-UTI Energy, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end).

 

 

  13  

 


 

Invesco DWA Energy Momentum ETF (PXI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Oil & Gas Exploration & Production      47.86  
Oil & Gas Equipment & Services      12.26  
Oil & Gas Refining & Marketing      11.56  
Oil & Gas Storage & Transportation      10.11  
Oil & Gas Drilling      6.88  
Integrated Oil & Gas      6.86  
Sub-Industry Types Each Less than 3%      4.45  
Money Market Funds Plus Other Assets Less Liabilities      0.02  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Cheniere Energy, Inc.      6.93  
Matador Resources Co.      6.35  
Texas Pacific Land Corp.      6.12  
ConocoPhillips      3.82  
Hess Corp.      3.63  
PBF Energy, Inc., Class A      3.43  
Marathon Petroleum Corp.      3.35  
Targa Resources Corp.      3.18  
Weatherford International PLC      3.08  
Transocean Ltd.      3.03  
Total      42.92  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

Invesco DWA Energy Momentum ETF (PXI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Energy Technical Leaders Index     (3.98 )%      40.05     174.71     0.86     4.37     (0.14 )%      (1.37 )%        4.32     101.41
S&P 500® Energy Index     19.22       37.56       160.30       8.29       48.92       4.87       60.95         5.91       158.58  
Fund                    
NAV Return     (4.42     39.27       170.16       0.32       1.62       (0.69     (6.69       3.72       82.98  
Market Price Return     (4.50     39.13       169.32       0.28       1.42       (0.69     (6.66       3.72       83.05  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Energy Technical LeadersTM Index performance is comprised of the performance of the Dynamic Energy Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  15  

 


 

 

PFI    Management’s Discussion of Fund Performance
   Invesco DWA Financial Momentum ETF (PFI)

 

As an index fund, the Invesco DWA Financial Momentum ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright® Financials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the financials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the financials sector for inclusion in the Index. Companies in the financials sector are principally engaged in the business of providing financial services and products, including banking, investment services, insurance and real estate finance services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (9.00)%. On a net asset value (“NAV”) basis, the Fund returned (9.05)%. During the same time period, the Index returned (8.48)%. 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® Financials Index (the “Benchmark Index”) returned (1.82)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 73 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the financials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large- capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the data processing & outsourced services sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to an overweight allocation to the residential REITs sub-industry and an overweight allocation to the industrial REITs sub-industry.

For the fiscal year ended April 30, 2023, the insurance brokers sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services sub-industry. The regional banks sub-industry detracted most significantly from the Fund’s return, followed by the residential REITs sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Mastercard Inc., Class A, a transaction & payment processing services company (portfolio average weight of 4.45%), and Progressive Corp., a property & casualty insurance company (portfolio average weight of 3.10%). Positions that detracted most significantly from the Fund’s return during this period included Independence Realty Trust, Inc., a multi-family residential REITs company (no longer held at fiscal year-end), and Prologis, Inc., an industrial REITs company (no longer held at fiscal year-end).

 

 

  16  

 


 

Invesco DWA Financial Momentum ETF (PFI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Insurance Brokers      13.36  
Property & Casualty Insurance      11.83  
Transaction & Payment Processing Services      9.53  
Life & Health Insurance      7.96  
Asset Management & Custody Banks      7.61  
Investment Banking & Brokerage      7.33  
Consumer Finance      5.49  
Retail REITs      5.05  
Other Specialized REITs      4.77  
Hotel & Resort REITs      4.58  
Commercial & Residential Mortgage Finance      4.14  
Self-Storage REITs      3.75  
Sub-Industry Types Each Less than 3%      14.52  
Money Market Funds Plus Other Assets Less Liabilities      0.08  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Arthur J. Gallagher & Co.      4.16  
Progressive Corp. (The)      3.87  
CubeSmart      3.75  
Mastercard, Inc., Class A      3.75  
Ameriprise Financial, Inc.      3.69  
Visa, Inc., Class A      3.37  
Marsh & McLennan Cos., Inc.      3.35  
Globe Life, Inc.      3.31  
Aon PLC, Class A      3.22  
Morgan Stanley      2.83  
Total      35.30  

 

*

Excluding money market fund holdings.

 

 

  17  

 


 

Invesco DWA Financial Momentum ETF (PFI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Financials Technical Leaders Index     (8.48 )%      10.85     36.21     5.29     29.38     7.74     110.71       5.14     129.18
S&P 500® Financials Index     (1.82     15.76       55.14       6.15       34.77       10.36       168.06         3.05       64.33  
Fund                    
NAV Return     (9.05     10.16       33.68       4.65       25.52       7.04       97.49         4.40       103.84  
Market Price Return     (9.00     10.15       33.63       4.60       25.19       7.04       97.47         4.39       103.73  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Financials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Financial Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  18  

 


 

 

PTH    Management’s Discussion of Fund Performance
   Invesco DWA Healthcare Momentum ETF (PTH)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the healthcare sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the healthcare sector for inclusion in the Index. Companies in the healthcare sector are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (1.31)%. On a net asset value (“NAV”) basis, the Fund returned (1.34)%. During the same time period, the Index returned (0.94)%. During the fiscal year, the Fund fully

replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P 500® Health Care Index (the “Benchmark Index”) returned 4.17%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 65 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the healthcare sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection in the biotechnology sub-industry.

For the fiscal year ended April 30, 2023, the pharmaceuticals sub-industry contributed most significantly to the Fund’s return, followed by the health care equipment and personal care products sub-industry. The healthcare facilities sub-industry detracted most significantly from the Fund’s return, followed by the health care technology and life sciences tools & services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Prometheus Biosciences, Inc., a biotechnology company (portfolio average weight of 2.15%), and Provention Bio, Inc., a pharmaceuticals company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Altimmune, Inc., a biotechnology company (no longer held at fiscal year-end), and Cassava Sciences, Inc., a pharmaceuticals company (no longer held at fiscal year-end).

 

 

  19  

 


 

Invesco DWA Healthcare Momentum ETF (PTH) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Biotechnology      35.02  
Health Care Equipment      17.74  
Life Sciences Tools & Services      12.69  
Pharmaceuticals      11.78  
Health Care Supplies      8.78  
Health Care Services      5.41  
Health Care Facilities      5.36  
Health Care Technology      3.24  
Money Market Funds Plus Other Assets Less Liabilities      (0.02)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Prometheus Biosciences, Inc.      6.67  
Lantheus Holdings, Inc.      4.38  
Reata Pharmaceuticals, Inc., Class A      4.08  
Thermo Fisher Scientific, Inc.      4.05  
IVERIC bio, Inc.      4.02  
IDEXX Laboratories, Inc.      3.71  
Apellis Pharmaceuticals, Inc.      3.39  
HCA Healthcare, Inc.      3.05  
Mettler-Toledo International, Inc.      3.01  
Penumbra, Inc.      2.70  
Total      39.06  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco DWA Healthcare Momentum ETF (PTH) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Healthcare Technical Leaders Index     (0.94 )%      7.43     23.99     9.66     58.56     12.67     229.69       10.78     444.13
S&P 500® Health Care Index     4.17       12.05       40.66       12.23       78.04       12.89       236.28         10.84       449.09  
Fund                    
NAV Return     (1.34     6.86       22.01       9.09       54.48       12.00       210.65         10.06       388.39  
Market Price Return     (1.31     6.78       21.75       9.04       54.13       12.02       211.10         10.05       388.23  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Healthcare Technical LeadersTM Index performance is comprised of the performance of the Dynamic Healthcare Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  21  

 


 

 

PRN    Management’s Discussion of Fund Performance
   Invesco DWA Industrials Momentum ETF (PRN)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the industrials sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the industrials sector for inclusion in the Index. Companies in the industrials sector are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing products and services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned 5.52%. On a net asset value (“NAV”) basis, the Fund returned 5.32%. During the same time period, the Index

returned 5.88%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500® Industrials Index (the “Benchmark Index”) returned 7.04%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 73 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the industrials sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the trading companies & distributors sub-industry and most underweight in the aerospace & defense sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection within building products sub-industry and the construction & engineering sub-industry.

For the fiscal year ended April 30, 2023, the construction & engineering sub-industry contributed most significantly to the Fund’s return, followed by the trading companies & distributors and diversified support services sub-industries, respectively. The agricultural & farm machinery sub-industry detracted most significantly from the Fund’s return, followed by the rail transportation and building products sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Saia, Inc., a cargo ground transportation company (portfolio average weight of 1.31%), and W.W. Grainger, Inc., a trading companies & distributors company (portfolio average weight of 4.63%). Positions that detracted most significantly from the Fund’s return during this period included Advanced Drainage Systems, Inc., a building products company (no longer held at fiscal year-end), and Deere & Company, an agricultural & farm machinery company (portfolio average weight of 1.26%).

 

 

  22  

 


 

Invesco DWA Industrials Momentum ETF (PRN) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Trading Companies & Distributors      15.25  
Construction & Engineering      11.76  
Aerospace & Defense      10.69  
Building Products      10.31  
Cargo Ground Transportation      8.76  
Electrical Components & Equipment      8.74  
Diversified Support Services      6.72  
Agricultural & Farm Machinery      5.30  
Industrial Machinery & Supplies & Components      4.52  
Research & Consulting Services      4.34  
Paper & Plastic Packaging Products & Materials      3.65  
Sub-Industry Types Each Less than 3%      9.97  
Money Market Funds Plus Other Assets Less Liabilities      (0.01)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
HEICO Corp.      3.91  
AMETEK, Inc.      3.68  
Graphic Packaging Holding Co.      3.65  
Trane Technologies PLC      3.65  
Copart, Inc.      3.64  
Hubbell, Inc.      3.56  
W.W. Grainger, Inc.      3.53  
Builders FirstSource, Inc.      3.46  
Saia, Inc.      3.43  
Old Dominion Freight Line, Inc.      3.42  
Total      35.93  

 

*

Excluding money market fund holdings.

 

 

  23  

 


 

Invesco DWA Industrials Momentum ETF (PRN) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Industrials Technical Leaders Index     5.88     16.55     58.31     11.38     71.40     11.08     185.89       9.71     363.26
S&P 500® Industrials Index     7.04       17.90       63.89       8.79       52.39       11.15       187.67         8.43       281.86  
Fund                    
NAV Return     5.32       15.87       55.55       10.73       66.48       10.39       168.63         8.90       309.94  
Market Price Return     5.52       15.74       55.04       10.72       66.39       10.39       168.80         8.90       310.18  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Industrials Technical LeadersTM Index performance is comprised of the performance of the Dynamic Industrials Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  24  

 


 

 

PTF    Management’s Discussion of Fund Performance
   Invesco DWA Technology Momentum ETF (PTF)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the technology sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the technology sector for inclusion in the Index. Companies in the technology sector are principally engaged in the business of providing technology-related products and services, including computer hardware and software, internet, electronics and semiconductors, and wireless communication technologies.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned 2.05%. On a net asset value (“NAV”) basis, the Fund returned 2.13%. During the same time period, the Index returned 2.78%. 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® Information Technology Index (the “Benchmark Index”) returned 8.08%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 66 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the technology sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the systems software sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection and the Fund being underweight in the systems software sub-industry.

For the fiscal year ended April 30, 2023, the electrical components & equipment sub-industry contributed most significantly to the Fund’s return, followed by the application software and semiconductor materials & equipment sub-industries, respectively. The data processing & outsourced services sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Array Technologies Inc, an electronic equipment & instruments company (no longer held at fiscal year-end) and Lattice Semiconductor Corp., a systems software company (portfolio average weight of 3.31%). Positions that detracted most significantly from the Fund’s return during this period included Coherent Corp., an electronic components company (no longer held at fiscal year-end), and HP Inc., an internet services & infrastructure company (no longer held at fiscal year-end).

 

 

  25  

 


 

Invesco DWA Technology Momentum ETF (PTF) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Application Software      34.62  
Semiconductors      28.39  
Semiconductor Materials & Equipment      10.11  
Systems Software      6.12  
Technology Hardware, Storage & Peripherals      5.78  
Technology Distributors      4.19  
Internet Services & Infrastructure      4.17  
Sub-Industry Types Each Less than 3%      6.61  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Intuit, Inc.      4.94  
Cadence Design Systems, Inc.      4.36  
Super Micro Computer, Inc.      4.05  
Riot Platforms, Inc.      3.89  
Lattice Semiconductor Corp.      3.86  
KLA Corp.      3.63  
ON Semiconductor Corp.      3.53  
Axcelis Technologies, Inc.      3.40  
First Solar, Inc.      3.36  
Marathon Digital Holdings, Inc.      3.30  
Total      38.32  

 

*

Excluding money market fund holdings.

 

 

  26  

 


 

Invesco DWA Technology Momentum ETF (PTF) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Technology Technical Leaders Index     2.78     17.01     60.19     17.24     121.49     16.10     345.12       10.68     436.36
S&P 500® Information Technology Index     8.08       19.28       69.72       19.72       145.99       20.09       523.76         14.47       836.46  
Fund                    
NAV Return     2.13       16.31       57.36       16.52       114.74       15.40       318.86         9.97       381.77  
Market Price Return     2.05       16.27       57.17       16.50       114.57       15.43       319.84         9.96       381.58  

 

Fund Inception: October 12, 2006

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Technology Technical LeadersTM Index performance is comprised of the performance of the Dynamic Technology Sector Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  27  

 


 

 

PUI    Management’s Discussion of Fund Performance
   Invesco DWA Utilities Momentum ETF (PUI)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of at least 30 securities of companies in the utilities sector that have powerful relative strength or “momentum” characteristics. The Index Provider selects these securities from approximately 2,000 of the largest constituents by market capitalization within the NASDAQ US Benchmark IndexTM. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market over a set period or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price as compared to that of a benchmark index.

The Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe.

After giving each eligible security a momentum score, the Index Provider selects at least 30 securities with the highest momentum scores from the utilities sector for inclusion in the Index. Companies in the utilities sector are principally engaged in providing energy, water, natural gas or telecommunications services. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater; and provide land line telephone services.

The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities representing a greater weight in the Index. The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned (2.95)%. On a net asset value (“NAV”) basis, the Fund returned (3.00)%. During the same time period, the Index returned (2.42)%. 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® Utilities Index (the “Benchmark Index”) returned (0.21)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the utilities sector.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, of which market capitalization is one component, whereas the Benchmark Index selects and weights stocks based primarily on market capitalization. More broadly, for the fiscal year, the Index weighting included small-, mid- and large-capitalization companies while the Benchmark Index was predominantly weighted to large-capitalization companies.

Relative to the Benchmark Index, the Fund was most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection and underweight allocation in the electric utilities sub-industry and the Fund being overweight in the renewable electricity sub-industry.

For the fiscal year ended April 30, 2023, the oil & gas storage & transportation sub-industry contributed most significantly to the Fund’s return. The multi-utilities sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Constellation Energy Corp., an electric utilities company (portfolio average weight of 3.42%), and AES Corp., an independent power producers & energy traders company (portfolio average weight of 2.22%). Positions that detracted most significantly from the Fund’s return during this period included EQT Corp., an oil & gas exploration & production company (no longer held at fiscal year-end), and Montauk Renewables, Inc., a renewable electricity company (no longer held at fiscal year-end).

 

 

  28  

 


 

Invesco DWA Utilities Momentum ETF (PUI) (continued)

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Electric Utilities      46.42  
Multi-Utilities      22.58  
Gas Utilities      12.60  
Water Utilities      6.65  
Oil & Gas Storage & Transportation      4.55  
Independent Power Producers & Energy Traders      4.02  
Sub-Industry Types Each Less than 3%      3.07  
Money Market Funds Plus Other Assets Less Liabilities      0.11  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
NextEra Energy, Inc.      4.56  
ONEOK, Inc.      4.55  
Atmos Energy Corp.      4.28  
Sempra Energy      4.24  
NiSource, Inc.      4.03  
Southern Co. (The)      4.03  
Alliant Energy Corp.      3.90  
DTE Energy Co.      3.78  
WEC Energy Group, Inc.      3.52  
American Water Works Co., Inc.      3.52  
Total      40.41  

 

*

Excluding money market fund holdings.

 

 

  29  

 


 

Invesco DWA Utilities Momentum ETF (PUI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Blended-Dorsey Wright® Utilities Technical Leaders Index     (2.42 )%      6.56     21.01     7.33     42.40     8.74     131.11       8.16     295.21
S&P 500® Utilities Index     (0.21     9.86       32.58       9.54       57.70       8.94       135.52         8.65       327.79  
Fund                    
NAV Return     (3.00     5.93       18.88       6.70       38.29       8.08       117.59         7.43       251.06  
Market Price Return     (2.95     5.82       18.49       6.68       38.19       8.10       117.95         7.44       251.54  

 

Fund Inception: October 26, 2005

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.81% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

The Blended-Dorsey Wright® Utilities Technical LeadersTM Index performance is comprised of the performance of the Dynamic Utilities Intellidex® Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2023.

 

-

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

 

 

  30  

 


 

 

PNQI    Management’s Discussion of Fund Performance
   Invesco NASDAQ Internet ETF (PNQI)

 

As an index fund, the Invesco NASDAQ Internet ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the NASDAQ CTA Internet IndexSM (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, Nasdaq, Inc. (the “Index Provider”) compiles the Index, which is designed to track the performance of companies engaged in internet-related businesses that are listed on one of the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. Companies in the Index include companies whose primary business includes Internet-related services including, but not limited to, Internet software, Internet search engines, web hosting, website design or Internet retail commerce as determined by the Consumer Technology Association (“CTA”). The Fund employs a “full replication” methodology in seeking to track the Index, meaning that the Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2023, on a market price basis, the Fund returned 0.54%. On a net asset value (“NAV”) basis, the Fund returned 0.40%. During the same time period, the Index returned 0.96%. 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 NASDAQ-100® Index (the “Benchmark Index”) returned 3.99%. The Benchmark Index is an unmanaged, modified market-capitalization weighted index based on the average performance of approximately 100 securities. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the overall U.S. stock market.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that consists of companies engaged in internet-related businesses, whereas the Benchmark Index consists of approximately 100 of the largest non-financial companies listed on the NASDAQ Stock Market, which may include companies that are not engaged in internet related businesses.

Relative to the Benchmark Index, the Fund was most overweight in the movies & entertainment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation in the semiconductor sub-industry, followed by the Fund’s security selection in the broadline retail sub-industry.

For the fiscal year ended April 30, 2023, the movies & entertainment sub-industry contributed most significantly to the Fund’s return. The internet & direct marketing retail sub-industry detracted most significantly from the Fund’s return, followed by the data processing & outsourced services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2023, included Netflix, Inc., a movies & entertainment company (portfolio average weight of 4.26%), and Meta Platforms Inc., Class A, an interactive media & services company (portfolio average weight of 8.22%). Positions that detracted most significantly from the Fund’s return during this period included Snap, Inc., Class A, an interactive media & services company (portfolio average weight of 0.87%), and Walt Disney Co., a movies & entertainment company (portfolio average weight of 7.67%).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Interactive Media & Services      21.10  
Broadline Retail      17.04  
Movies & Entertainment      12.45  
Application Software      12.13  
Systems Software      9.13  
Hotels, Resorts & Cruise Lines      7.56  
Internet Services & Infrastructure      5.68  
Transaction & Payment Processing Services      3.78  
Passenger Ground Transportation      3.05  
Sub-Industry Types Each Less than 3%      8.12  
Money Market Funds Plus Other Assets Less Liabilities      (0.04)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of April 30, 2023
 
Security   
Meta Platforms, Inc., Class A      10.04  
Microsoft Corp.      9.00  
Alphabet, Inc., Class C      8.76  
Amazon.com, Inc.      8.18  
Walt Disney Co. (The)      7.20  
Salesforce, Inc.      4.43  
Adobe, Inc.      4.26  
Booking Holdings, Inc.      3.89  
PayPal Holdings, Inc.      3.78  
Netflix, Inc.      3.74  
Total      63.28  

 

*

Excluding money market fund holdings.

 

 

  31  

 


 

Invesco NASDAQ Internet ETF (PNQI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2023

 

         

3 Years

Average
Annualized

   

3 Years

Cumulative

   

5 Years

Average
Annualized

   

5 Years

Cumulative

   

10 Years

Average
Annualized

   

10 Years

Cumulative

          Fund Inception  
Index   1 Year           Average
Annualized
    Cumulative  
Nasdaq CTA Internet IndexSM     0.96     (0.90 )%      (2.67 )%      2.27     11.90     12.42     222.36       13.24     536.04
Nasdaq-100® Index     3.99       14.66       50.74       15.98       109.88       17.72       410.96         15.00       700.93  
Fund                    
NAV Return     0.40       (1.46     (4.31     1.70       8.79       11.79       204.91         12.63       486.88  
Market Price Return     0.54       (1.44     (4.25     1.68       8.69       11.80       205.01         12.51       477.80  

 

Fund Inception: June 12, 2008

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.60% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not

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

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  32  

 


 

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

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

 

   

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

 

   

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

 

   

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

 

   

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

 

   

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

 

  33  

 

 

 

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ)

April 30, 2023

Schedule of Investments(a)

 

        Shares             Value      
Common Stocks & Other Equity Interests-100.01%

 

Aluminum-2.46%

   

Arconic Corp.(b)

    75,647     $ 1,872,263  

Century Aluminum Co.(b)(c)

    229,608       1,972,333  
   

 

 

 
      3,844,596  
   

 

 

 

Automotive Retail-2.12%

   

Valvoline, Inc.

    95,830       3,310,926  
   

 

 

 

Commodity Chemicals-15.29%

   

Cabot Corp.

    44,165       3,169,280  

Dow, Inc.

    55,629       3,026,218  

LyondellBasell Industries N.V., Class A(c)

    35,991       3,405,109  

Olin Corp.

    124,201       6,880,735  

Orion Engineered Carbons S.A. (Germany)

    79,186       1,917,093  

PureCycle Technologies, Inc.(b)(c)

    262,446       1,724,270  

Westlake Corp.(c)

    33,475       3,808,786  
   

 

 

 
      23,931,491  
   

 

 

 

Construction Materials-1.99%

   

Summit Materials, Inc., Class A(b)

    113,704       3,116,627  
   

 

 

 

Copper-1.84%

   

Freeport-McMoRan, Inc.

    76,009       2,881,501  
   

 

 

 

Diversified Chemicals-1.26%

   

Chemours Co. (The)

    67,919       1,974,405  
   

 

 

 

Diversified Metals & Mining-3.77%

   

Materion Corp.

    33,821       3,663,152  

Piedmont Lithium, Inc.(b)(c)

    38,916       2,237,670  
   

 

 

 
      5,900,822  
   

 

 

 

Fertilizers & Agricultural Chemicals-8.97%

 

 

Corteva, Inc.

    100,813       6,161,691  

FMC Corp.

    25,219       3,116,564  

Scotts Miracle-Gro Co. (The)(c)

    71,361       4,767,628  
   

 

 

 
      14,045,883  
   

 

 

 

Forest Products-1.71%

   

Louisiana-Pacific Corp.

    44,774       2,674,799  
   

 

 

 

Gold-2.05%

   

Royal Gold, Inc.

    24,227       3,208,624  
   

 

 

 

Industrial Gases-4.07%

   

Air Products and Chemicals, Inc.

    21,628       6,366,418  
   

 

 

 

Metal, Glass & Plastic Containers-2.51%

 

 

O-I Glass, Inc.(b)

    174,692       3,925,329  
   

 

 

 

Paper & Plastic Packaging Products & Materials-3.74%

 

Avery Dennison Corp.

    33,535       5,851,187  
   

 

 

 

Paper Products-1.53%

   

Sylvamo Corp.

    52,296       2,396,203  
   

 

 

 

Silver-1.41%

   

Hecla Mining Co.(c)

    366,088       2,214,832  
   

 

 

 

Specialty Chemicals-14.70%

   

Albemarle Corp.

    20,932       3,882,049  

Ashland, Inc.

    28,601       2,906,148  

Avient Corp.

    90,616       3,489,622  

Investment Abbreviations:

   

REIT-Real Estate Investment Trust

   
        Shares             Value      

Specialty Chemicals-(continued)

   

Element Solutions, Inc.

    112,775     $ 2,046,866  

H.B. Fuller Co.

    30,846       2,041,080  

Innospec, Inc.

    15,350       1,560,020  

NewMarket Corp.

    5,620       2,245,752  

Quaker Chemical Corp.(c)

    11,217       2,093,429  

RPM International, Inc.

    33,519       2,749,563  
   

 

 

 
      23,014,529  
   

 

 

 

Steel-28.91%

   

ATI, Inc.(b)(c)

    106,364       4,107,778  

Carpenter Technology Corp.

    84,619       4,462,806  

Cleveland-Cliffs, Inc.(b)

    258,496       3,975,669  

Commercial Metals Co.

    86,344       4,031,401  

Nucor Corp.

    34,968       5,181,558  

Olympic Steel, Inc.

    40,918       1,905,551  

Reliance Steel & Aluminum Co.

    22,127       5,483,071  

Ryerson Holding Corp.

    56,503       2,134,118  

Steel Dynamics, Inc.

    56,665       5,890,327  

SunCoke Energy, Inc.

    223,514       1,738,939  

United States Steel Corp.

    187,479       4,289,520  

Worthington Industries, Inc.

    34,701       2,060,892  
   

 

 

 
      45,261,630  
   

 

 

 

Timber REITs-1.68%

   

PotlatchDeltic Corp.(c)

    56,860       2,628,638  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $144,418,778)

      156,548,440  
   

 

 

 

Money Market Funds-0.11%

   

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $180,435)

    180,435       180,435  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.12%
(Cost $144,599,213)

      156,728,875  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-13.31%

 

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

    5,834,163       5,834,163  

Invesco Private Prime Fund, 4.99%(d)(e)(f) 

    15,002,132       15,002,132  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $20,836,624)

 

    20,836,295  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-113.43%
(Cost $165,435,837)

 

    177,565,170  

OTHER ASSETS LESS LIABILITIES-(13.43)%

 

    (21,028,712
   

 

 

 

NET ASSETS-100.00%.

    $ 156,536,458  
   

 

 

 

 

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

 

  34  

 

 

 

 


 

Invesco DWA Basic Materials Momentum ETF (PYZ)–(continued)

April 30, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class     $     273,111      $     3,808,072      $     (3,900,748     $ -     $ -      $     180,435      $     5,335
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund       9,705,723        78,025,611        (81,897,171       -       -        5,834,163        170,514 *
Invesco Private Prime Fund       22,636,353        161,279,036        (168,913,495 )       (329 )       567        15,002,132        470,597 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total     $ 32,615,187      $ 243,112,719      $ (254,711,414     $ (329 )     $ 567      $ 21,016,730      $ 646,446
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  35  

 

 

 

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

April 30, 2023

Schedule of Investments(a)

 

        Shares             Value      
Common Stocks & Other Equity Interests-99.92%

 

Advertising-2.65%

   

Interpublic Group of Cos., Inc. (The)(b)

    16,878     $ 603,051  
   

 

 

 

Apparel, Accessories & Luxury  Goods-4.92%

   

Oxford Industries, Inc.

    3,323       342,900  

Tapestry, Inc.

    19,016       776,043  
   

 

 

 
      1,118,943  
   

 

 

 

Automotive Retail-8.02%

   

AutoNation, Inc.(b)(c)

    6,905       909,389  

Group 1 Automotive, Inc.(b)

    2,051       460,408  

Penske Automotive Group, Inc.(b)

    3,295       456,621  
   

 

 

 
      1,826,418  
   

 

 

 

Casinos & Gaming-4.70%

   

Churchill Downs, Inc.(b)

    1,269       371,220  

Las Vegas Sands Corp.(c)

    10,942       698,647  
   

 

 

 
      1,069,867  
   

 

 

 

Consumer Staples Merchandise  Retail-3.61%

   

BJ’s Wholesale Club Holdings, Inc.(c)

    10,770       822,505  
   

 

 

 

Distributors-2.94%

   

LKQ Corp.

    11,611       670,303  
   

 

 

 

Education Services-2.58%

   

Duolingo, Inc.(b)(c)

    4,308       586,577  
   

 

 

 

Footwear-3.45%

   

Deckers Outdoor Corp.(c)

    1,638       785,159  
   

 

 

 

Home Furnishings-5.16%

   

Ethan Allen Interiors, Inc.

    7,473       208,721  

Tempur Sealy International, Inc.

    25,807       966,988  
   

 

 

 
      1,175,709  
   

 

 

 

Home Improvement Retail-6.09%

   

Floor & Decor Holdings, Inc., Class A(b)(c)

    5,786       574,781  

Home Depot, Inc. (The)

    2,701       811,759  
   

 

 

 
      1,386,540  
   

 

 

 

Homebuilding-4.78%

   

NVR, Inc.(c)

    111       648,240  

Skyline Champion Corp.(b)(c)

    5,943       440,792  
   

 

 

 
      1,089,032  
   

 

 

 

Hotels, Resorts & Cruise Lines-4.59%

   

Hilton Grand Vacations, Inc.(c)

    6,093       260,780  

Hyatt Hotels Corp., Class A(b)(c)

    4,628       528,981  

Marriott Vacations Worldwide Corp.

    1,890       254,318  
   

 

 

 
      1,044,079  
   

 

 

 

Interactive Media & Services-1.05%

   

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

    12,193       238,617  
   

 

 

 

Leisure Facilities-4.78%

   

Bowlero Corp.(b)(c)

    22,421       328,019  

SeaWorld Entertainment, Inc.(b)(c)

    7,921       425,041  

Xponential Fitness, Inc., Class A(b)(c)

    10,112       334,505  
   

 

 

 
      1,087,565  
   

 

 

 
        Shares             Value      

Leisure Products-1.34%

   

Topgolf Callaway Brands Corp.(b)(c)

    13,748     $ 304,793  
   

 

 

 

Movies & Entertainment-6.21%

   

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

    8,490       612,893  

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

    7,470       800,560  
   

 

 

 
      1,413,453  
   

 

 

 

Other Specialty Retail-21.90%

   

Academy Sports & Outdoors, Inc.(b)

    10,220       649,175  

Dick’s Sporting Goods, Inc.(b)

    9,899       1,435,454  

Five Below, Inc.(c)

    4,723       932,131  

Signet Jewelers Ltd.

    6,598       485,481  

Tractor Supply Co.(b)

    3,265       778,376  

Ulta Beauty, Inc.(c)

    1,279       705,279  
   

 

 

 
      4,985,896  
   

 

 

 

Restaurants-9.47%

   

Bloomin’ Brands, Inc.

    11,826       292,930  

Darden Restaurants, Inc.

    4,776       725,618  

Jack in the Box, Inc.

    4,238       392,820  

Wingstop, Inc.(b)

    3,724       745,210  
   

 

 

 
      2,156,578  
   

 

 

 

Trading Companies &  Distributors-1.68%

   

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

    6,344       381,782  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $20,926,159)

 

    22,746,867  
   

 

 

 
Money Market Funds-0.64%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $144,833)

    144,833       144,833  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.56%
(Cost $21,070,992)

 

    22,891,700  
   

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-31.28%

 

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

    1,999,085       1,999,085  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    5,121,565       5,121,565  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $7,120,694)

      7,120,650  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-131.84%
(Cost $28,191,686)

 

    30,012,350  

OTHER ASSETS LESS LIABILITIES-(31.84)%

 

    (7,247,326
   

 

 

 

NET ASSETS-100.00%

 

  $ 22,765,024  
   

 

 

 

 

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

 

  36  

 

 

 

 


 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)–(continued)

April 30, 2023

    

 

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 April 30, 2023.

(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 April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                               
Invesco Government & Agency Portfolio, Institutional Class     $ 140,012      $ 1,006,606      $ (1,001,785     $ -     $ -     $ 144,833      $ 4,253
Investments Purchased with Cash Collateral from Securities on Loan:                               
Invesco Private Government Fund       1,359,112        30,103,785        (29,463,812       -       -       1,999,085        46,125 *
Invesco Private Prime Fund       3,168,189        62,930,239        (60,976,573 )       (44 )       (246 )       5,121,565        127,776 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total     $ 4,667,313      $ 94,040,630      $ (91,442,170     $ (44 )     $ (246 )     $ 7,265,483      $ 178,154
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  37  

 

 

 

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL)

April 30, 2023

Schedule of Investments(a)

 

        Shares              Value      
Common Stocks & Other Equity Interests-100.00%

 

Agricultural Products &  Services-3.30%

    

Bunge Ltd.

    42,873      $ 4,012,913  
    

 

 

 

Education Services-4.01%

    

Laureate Education, Inc., Class A

    217,826        2,698,864  

Perdoceo Education Corp.(b)

    167,046        2,168,257  
    

 

 

 
       4,867,121  
    

 

 

 

Food Distributors-14.10%

    

Andersons, Inc. (The)(c)

    68,787        3,074,779  

Performance Food Group Co.(b)

    78,614        4,928,312  

Sysco Corp.

    58,223        4,468,033  

US Foods Holding Corp.(b)

    121,440        4,663,296  
    

 

 

 
       17,134,420  
    

 

 

 

Food Retail-10.18%

    

Casey’s General Stores, Inc.

    18,246        4,175,050  

Ingles Markets, Inc., Class A(c)

    28,099        2,586,232  

Sprouts Farmers Market, Inc.(b)(c)

    92,090        3,191,839  

Weis Markets, Inc.(c)

    29,315        2,418,194  
    

 

 

 
       12,371,315  
    

 

 

 

Household Products-3.96%

    

Procter & Gamble Co. (The)

    30,767        4,811,344  
    

 

 

 

Packaged Foods & Meats-31.19%

    

Cal-Maine Foods, Inc.

    53,197        2,526,858  

Conagra Brands, Inc.

    98,977        3,757,167  

General Mills, Inc.

    50,594        4,484,146  

Hershey Co. (The)(c)

    18,588        5,075,639  

JM Smucker Co. (The)(c)

    23,320        3,600,841  

Kraft Heinz Co. (The)

    100,268        3,937,524  

Lamb Weston Holdings, Inc.

    44,733        5,001,597  

Mondelez International, Inc., Class A(c)

    54,701        4,196,661  

Post Holdings, Inc.(b)

    31,086        2,812,972  

Utz Brands, Inc.(c)

    131,988        2,495,893  
    

 

 

 
       37,889,298  
    

 

 

 

Personal Care Products-11.83%

    

Coty, Inc., Class A(b)

    386,182        4,583,980  

elf Beauty, Inc.(b)(c)

    58,307        5,408,557  

Inter Parfums, Inc.

    28,855        4,379,901  
    

 

 

 
       14,372,438  
    

 

 

 
        Shares              Value      

Soft Drinks & Non-alcoholic Beverages-13.95%

 

Coca-Cola Consolidated, Inc.

    6,189      $ 3,648,168  

Keurig Dr Pepper, Inc.

    139,265        4,553,965  

Monster Beverage Corp.(b)

    73,344        4,107,264  

PepsiCo, Inc.

    24,303        4,639,200  
    

 

 

 
       16,948,597  
    

 

 

 

Specialized Consumer Services-4.45%

 

Service Corp. International(c)

    76,970        5,402,524  
    

 

 

 

Tobacco-3.03%

    

Philip Morris International, Inc.

    36,875        3,686,394  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $108,123,643)

 

     121,496,364  
    

 

 

 
Money Market Funds-0.12%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $146,579)

    146,579        146,579  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.12%
(Cost $108,270,222)

 

     121,642,943  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-11.58%

 

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

    3,940,344        3,940,344  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    10,132,313        10,132,313  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $14,072,672)

 

     14,072,657  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-111.70%
(Cost $122,342,894)

 

     135,715,600  

OTHER ASSETS LESS LIABILITIES-(11.70)%

 

     (14,218,141
    

 

 

 

NET ASSETS-100.00%

     $ 121,497,459  
    

 

 

 

 

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

 

  38  

 

 

 

 


 

Invesco DWA Consumer Staples Momentum ETF (PSL)–(continued)

April 30, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money
Market Funds:
                               
Invesco Government & Agency Portfolio, Institutional Class     $ 24,532      $ 6,415,250      $ (6,293,203     $ -     $ -      $ 146,579      $ 5,996
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund       5,383,930        62,304,519        (63,748,105       -       -        3,940,344        133,623 *
Invesco Private Prime Fund       12,091,655        128,056,473        (130,017,655 )       (1,498 )       3,338        10,132,313        369,480 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total     $ 17,500,117      $ 196,776,242      $ (200,058,963     $ (1,498 )     $ 3,338      $ 14,219,236      $ 509,099
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  39  

 

 

 

 


 

Invesco DWA Energy Momentum ETF (PXI)

April 30, 2023

Schedule of Investments(a)

 

        Shares              Value      
Common Stocks & Other Equity Interests-99.98%

 

Coal & Consumable Fuels-1.88%

    

Arch Resources, Inc.(b)

    14,635      $ 1,789,129  
    

 

 

 

Integrated Oil & Gas-6.86%

    

Chevron Corp.

    12,075        2,035,603  

Exxon Mobil Corp.

    21,773        2,576,617  

Occidental Petroleum Corp.

    31,367        1,930,012  
    

 

 

 
       6,542,232  
    

 

 

 

Oil & Gas Drilling-6.88%

    

Diamond Offshore Drilling, Inc.(b)(c)

    113,531        1,304,471  

Transocean Ltd.(b)(c)

    490,398        2,893,348  

Valaris Ltd.(b)(c)

    39,368        2,362,080  
    

 

 

 
       6,559,899  
    

 

 

 

Oil & Gas Equipment &  Services-12.26%

    

ChampionX Corp.

    73,837        1,999,506  

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

    270,132        1,958,457  

Oceaneering International, Inc.(c)

    71,067        1,260,018  

Oil States International, Inc.(c)

    151,224        1,064,617  

Tidewater, Inc.(b)(c)

    54,796        2,467,464  

Weatherford International PLC(c)

    45,389        2,933,491  
    

 

 

 
       11,683,553  
    

 

 

 

Oil & Gas Exploration &  Production-47.86%

    

Antero Resources Corp.(c)

    124,842        2,870,118  

APA Corp.

    61,832        2,278,509  

Chord Energy Corp.

    15,822        2,251,945  

ConocoPhillips

    35,360        3,638,190  

Devon Energy Corp.

    46,719        2,496,196  

Diamondback Energy, Inc.(b)

    15,208        2,162,578  

EOG Resources, Inc.

    19,087        2,280,324  

Hess Corp.(b)

    23,845        3,458,956  

Kosmos Energy Ltd. (Ghana)(c)

    260,036        1,664,230  

Magnolia Oil & Gas Corp., Class A(b)

    59,134        1,248,910  

Marathon Oil Corp.

    87,942        2,124,679  

Matador Resources Co.

    123,449        6,052,704  

Murphy Oil Corp.

    52,031        1,910,058  

Northern Oil and Gas, Inc.(b)

    52,038        1,726,100  

Permian Resources Corp.(b)

    236,003        2,466,231  

Texas Pacific Land Corp.(b)

    3,947        5,832,285  

Vitesse Energy, Inc.

    63,204        1,162,954  
    

 

 

 
       45,624,967  
    

 

 

 
        Shares              Value      

Oil & Gas Refining & Marketing-11.56%

 

CVR Energy, Inc.(b)

    38,643      $ 1,017,856  

Marathon Petroleum Corp.

    26,196        3,195,912  

Par Pacific Holdings, Inc.(c)

    67,037        1,570,677  

PBF Energy, Inc., Class A

    93,858        3,271,890  

Valero Energy Corp.

    17,131        1,964,412  
    

 

 

 
       11,020,747  
    

 

 

 

Oil & Gas Storage & Transportation-10.11%

 

Cheniere Energy, Inc.

    43,175        6,605,775  

Targa Resources Corp.

    40,194        3,035,853  
    

 

 

 
       9,641,628  
    

 

 

 

Steel-2.57%

    

Alpha Metallurgical Resources, Inc.(b)

    16,696        2,446,966  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $93,659,850)

 

     95,309,121  
    

 

 

 
Money Market Funds-0.23%

 

Invesco Government & Agency Portfolio,
Institutional Class, 4.78%(d)(e)
(Cost $221,047)

    221,047        221,047  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.21%
(Cost $93,880,897)

 

     95,530,168  
    

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-21.75%

 

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

    5,805,002        5,805,002  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    14,927,149        14,927,149  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $20,732,151)

 

     20,732,151  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-121.96%
(Cost $114,613,048)

 

     116,262,319  

OTHER ASSETS LESS LIABILITIES-(21.96)%

 

     (20,936,961
    

 

 

 

NET ASSETS-100.00%

     $ 95,325,358  
    

 

 

 

 

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

 

  40  

 

 

 

 


 

Invesco DWA Energy Momentum ETF (PXI)–(continued)

April 30, 2023

    

 

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 April 30, 2023.

(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 April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money
Market Funds:
                              
Invesco Government & Agency Portfolio, Institutional Class     $ 249,928      $ 14,203,081      $ (14,231,962     $ -     $ -     $ 221,047      $ 8,298
Investments Purchased with Cash Collateral from Securities on Loan:                               
Invesco Private Government Fund       13,426,783        149,486,657        (157,108,438       -       -       5,805,002        291,893 *
Invesco Private Prime Fund       31,312,864        310,072,679        (326,455,286 )       (405 )       (2,703 )       14,927,149        799,598 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total     $ 44,989,575      $ 473,762,417      $ (497,795,686     $ (405 )     $ (2,703 )     $ 20,953,198      $ 1,099,789
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  41  

 

 

 

 


 

Invesco DWA Financial Momentum ETF (PFI)

April 30, 2023

Schedule of Investments(a)

 

        Shares             Value      
Common Stocks & Other Equity Interests-99.92%

 

Asset Management & Custody Banks-7.61%

 

 

Ameriprise Financial, Inc.

    3,488     $ 1,064,259  

Federated Hermes, Inc., Class B

    10,348       428,304  

Victory Capital Holdings, Inc., Class A(b)

    12,532       382,727  

WisdomTree, Inc.(b)

    51,426       320,898  
   

 

 

 
      2,196,188  
   

 

 

 

Commercial & Residential Mortgage Finance-4.14%

 

Federal Agricultural Mortgage Corp., Class C(b)

    3,106       413,999  

Mr. Cooper Group, Inc.(b)(c)

    16,883       781,683  
   

 

 

 
      1,195,682  
   

 

 

 

Consumer Finance-5.49%

   

American Express Co.

    4,861       784,274  

Enova International, Inc.(b)(c)

    8,057       353,863  

FirstCash Holdings, Inc.

    4,331       446,223  
   

 

 

 
      1,584,360  
   

 

 

 

Diversified REITs-1.51%

   

Essential Properties Realty Trust, Inc.

    17,657       437,011  
   

 

 

 

Financial Exchanges & Data-2.36%

   

FactSet Research Systems, Inc.

    1,652       680,112  
   

 

 

 

Hotel & Resort REITs-4.58%

   

Apple Hospitality REIT, Inc.

    27,090       403,370  

Ryman Hospitality Properties, Inc.(b)

    7,010       628,517  

Service Properties Trust

    33,195       291,120  
   

 

 

 
      1,323,007  
   

 

 

 

Industrial Machinery & Supplies & Components-1.49%

 

Symbotic, Inc.(c)

    16,240       431,334  
   

 

 

 

Insurance Brokers-13.36%

   

Aon PLC, Class A

    2,858       929,365  

Arthur J. Gallagher & Co.

    5,772       1,200,922  

Goosehead Insurance, Inc., Class A(b)(c)

    5,964       342,930  

Marsh & McLennan Cos., Inc.

    5,379       969,242  

Ryan Specialty Holdings, Inc., Class A(b)(c)

    10,184       416,118  
   

 

 

 
      3,858,577  
   

 

 

 

Investment Banking & Brokerage-7.33%

   

Houlihan Lokey, Inc.(b)

    5,557       507,799  

Morgan Stanley

    9,094       818,187  

Piper Sandler Cos

    3,491       472,821  

StoneX Group, Inc.(c)

    3,230       316,766  
   

 

 

 
      2,115,573  
   

 

 

 

Life & Health Insurance-7.96%

   

Aflac, Inc.

    9,941       694,379  

Globe Life, Inc.

    8,812       956,278  

Primerica, Inc.

    3,549       647,728  
   

 

 

 
      2,298,385  
   

 

 

 

Mortgage REITs-1.55%

   

New York Mortgage Trust, Inc.(b)

    43,508       447,262  
   

 

 

 

Other Specialized REITs-4.77%

   

Gaming and Leisure Properties, Inc.

    13,945       725,140  

VICI Properties, Inc.

    19,206       651,852  
   

 

 

 
      1,376,992  
   

 

 

 

Property & Casualty Insurance-11.83%

 

Ambac Financial Group, Inc.(c)

    21,537       343,515  
        Shares             Value      

Property & Casualty Insurance-(continued)

 

 

Arch Capital Group Ltd.(c)

    9,825     $ 737,563  

HCI Group, Inc.

    5,687       288,103  

Old Republic International Corp.

    17,610       445,005  

Progressive Corp. (The)

    8,184       1,116,298  

RLI Corp.(b)

    3,479       483,755  
   

 

 

 
      3,414,239  
   

 

 

 

Real Estate Services-1.52%

   

Redfin Corp.(b)(c)

    59,012       439,639  
   

 

 

 

Regional Banks-2.29%

   

OFG Bancorp

    13,610       348,008  

Pathward Financial, Inc.(b)

    6,999       311,665  
   

 

 

 
      659,673  
   

 

 

 

Reinsurance-2.18%

   

Everest Re Group Ltd.

    1,668       630,504  
   

 

 

 

Retail REITs-5.05%

   

Brixmor Property Group, Inc.

    19,139       408,235  

Kite Realty Group Trust(b)

    20,732       429,567  

Simon Property Group, Inc.

    5,485       621,560  
   

 

 

 
      1,459,362  
   

 

 

 

Self-Storage REITs-3.75%

   

CubeSmart

    23,808       1,083,026  
   

 

 

 

Trading Companies &  Distributors-1.62%

   

FTAI Aviation Ltd.

    16,436       467,604  
   

 

 

 

Transaction & Payment Processing Services-9.53%

 

International Money Express, Inc.(c)

    13,182       339,832  

Mastercard, Inc., Class A

    2,848       1,082,325  

Payoneer Global, Inc.(b)(c)

    64,831       353,977  

Visa, Inc., Class A(b)

    4,186       974,208  
   

 

 

 
      2,750,342  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $27,581,996)

 

    28,848,872  
   

 

 

 
Money Market Funds-0.47%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $135,073)

    135,073       135,073  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.39%
(Cost $27,717,069)

 

    28,983,945  
   

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-13.40%

 

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

    1,083,298       1,083,298  

 

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

 

  42  

 

 

 

 


 

Invesco DWA Financial Momentum ETF (PFI)–(continued)

April 30, 2023

    

 

        Shares             Value      
Money Market Funds-(continued)

 

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    2,785,624     $ 2,785,624  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $3,869,020)

 

    3,868,922  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-113.79%
(Cost $31,586,089)

 

    32,852,867  

OTHER ASSETS LESS LIABILITIES-(13.79)%

 

    (3,980,452
   

 

 

 

NET ASSETS-100.00%

    $ 28,872,415  
   

 

 

 

Investment Abbreviations:

   

REIT -Real Estate Investment Trust

   

 

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 April 30, 2023.

(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 April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money
Market Funds:
                               
Invesco Government & Agency
Portfolio, Institutional Class
    $ 196,176      $ 2,093,690      $ (2,154,793     $ -     $ -      $ 135,073      $ 4,058
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund       949,782        23,168,732        (23,035,216       -       -        1,083,298        49,231 *
Invesco Private Prime Fund       2,214,095        55,682,335        (55,110,861 )       (98 )       153        2,785,624        134,518 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total     $ 3,360,053      $ 80,944,757      $ (80,300,870     $ (98 )     $ 153      $ 4,003,995      $ 187,807
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  43  

 

 

 

 


 

Invesco DWA Healthcare Momentum ETF (PTH)

April 30, 2023

Schedule of Investments(a)

 

        Shares             Value      
Common Stocks & Other Equity Interests-100.02%

 

Biotechnology-35.02%

   

Amicus Therapeutics, Inc.(b)(c)

    192,604     $ 2,222,650  

Apellis Pharmaceuticals, Inc.(b)(c)

    73,533       6,134,858  

Ardelyx, Inc.(b)

    1,037,647       4,627,906  

Celldex Therapeutics, Inc.(b)(c)

    61,123       1,921,707  

Exact Sciences Corp.(b)(c)

    68,979       4,419,485  

IVERIC bio, Inc.(b)(c)

    221,665       7,290,562  

Krystal Biotech, Inc.(b)(c)

    33,107       2,780,988  

Kymera Therapeutics, Inc.(b)(c)

    90,890       2,866,671  

Morphic Holding, Inc.(b)(c)

    62,671       2,961,831  

Natera, Inc.(b)

    74,971       3,802,529  

Prometheus Biosciences, Inc.(b)(c)

    62,282       12,079,594  

Protagonist Therapeutics, Inc.(b)

    154,724       3,496,762  

PTC Therapeutics, Inc.(b)

    47,791       2,635,196  

Regeneron Pharmaceuticals, Inc.(b)

    5,374       4,308,819  

Syndax Pharmaceuticals, Inc.(b)

    91,662       1,883,654  
   

 

 

 
      63,433,212  
   

 

 

 

Health Care Equipment-17.74%

   

Alphatec Holdings, Inc.(b)

    189,580       2,737,535  

IDEXX Laboratories, Inc.(b)

    13,671       6,728,320  

Inspire Medical Systems, Inc.(b)

    15,067       4,032,381  

Insulet Corp.(b)

    11,702       3,721,704  

Masimo Corp.(b)

    20,845       3,942,623  

Penumbra, Inc.(b)(c)

    17,210       4,889,705  

Pulmonx Corp.(b)(c)

    150,705       1,770,784  

TransMedics Group, Inc.(b)(c)

    54,586       4,317,753  
   

 

 

 
      32,140,805  
   

 

 

 

Health Care Facilities-5.36%

   

Ensign Group, Inc. (The)(c)

    43,214       4,195,647  

HCA Healthcare, Inc.

    19,217       5,521,621  
   

 

 

 
      9,717,268  
   

 

 

 

Health Care Services-5.41%

   

agilon health, inc.(b)(c)

    150,378       3,649,674  

CorVel Corp.(b)

    17,928       3,621,994  

NeoGenomics, Inc.(b)(c)

    172,492       2,521,833  
   

 

 

 
      9,793,501  
   

 

 

 

Health Care Supplies-8.78%

   

Haemonetics Corp.(b)

    28,042       2,347,396  

Lantheus Holdings, Inc.(b)

    92,850       7,934,032  

Merit Medical Systems, Inc.(b)

    41,330       3,359,716  

UFP Technologies, Inc.(b)(c)

    16,471       2,270,363  
   

 

 

 
      15,911,507  
   

 

 

 

Health Care Technology-3.24%

   

Evolent Health, Inc., Class A(b)(c)

    116,452       4,240,017  

Phreesia, Inc.(b)(c)

    51,369       1,625,315  
   

 

 

 
      5,865,332  
   

 

 

 
        Shares             Value      

Life Sciences Tools & Services-12.69%

   

10X Genomics, Inc., Class A(b)(c)

    52,654     $ 2,760,649  

Agilent Technologies, Inc.

    32,610       4,416,372  

Bruker Corp.

    38,128       3,017,069  

Mettler-Toledo International, Inc.(b)

    3,661       5,460,382  

Thermo Fisher Scientific, Inc.

    13,207       7,328,564  
   

 

 

 
      22,983,036  
   

 

 

 

Pharmaceuticals-11.78%

   

Collegium Pharmaceutical, Inc.(b)

    65,656       1,527,815  

Cymabay Therapeutics, Inc.(b)(c)

    425,603       4,579,489  

Harrow Health, Inc.(b)

    107,700       2,717,271  

Reata Pharmaceuticals, Inc., Class A(b)

    74,791       7,393,838  

Revance Therapeutics, Inc.(b)(c)

    95,930       3,053,452  

Supernus Pharmaceuticals, Inc.(b)

    55,964       2,062,833  
   

 

 

 
      21,334,698  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $157,811,874)

 

    181,179,359  
   

 

 

 
Money Market Funds-0.15%    

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $272,087)

    272,087       272,087  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.17%
(Cost $158,083,961)

 

    181,451,446  
   

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

 
Money Market Funds-23.56%    

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

    11,949,604       11,949,604  

Invesco Private Prime Fund, 4.99%(d)(e)(f) 

    30,727,554       30,727,554  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $42,677,158)

 

    42,677,158  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-123.73%
(Cost $200,761,119)

 

    224,128,604  

OTHER ASSETS LESS LIABILITIES-(23.73)%

 

    (42,984,748
   

 

 

 

NET ASSETS-100.00%

    $ 181,143,856  
   

 

 

 

 

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

 

  44  

 

 

 

 


 

Invesco DWA Healthcare Momentum ETF (PTH)–(continued)

April 30, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency
Portfolio, Institutional Class
    $ 481,376      $ 11,348,781      $ (11,558,070     $ -     $ -      $ 272,087      $ 12,629
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund       13,055,110        183,323,282        (184,428,788       -       -        11,949,604        429,661 *
Invesco Private Prime Fund       30,443,565        365,008,654        (364,725,376 )       (426 )       1,137        30,727,554        1,166,119 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total     $ 43,980,051      $ 559,680,717      $ (560,712,234     $ (426 )     $ 1,137      $ 42,949,245      $ 1,608,409
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  45  

 

 

 

 


 

Invesco DWA Industrials Momentum ETF (PRN)

April 30, 2023

Schedule of Investments(a)

 

        Shares             Value      
Common Stocks & Other Equity Interests-100.01%

 

Aerospace & Defense-10.69%

   

Axon Enterprise, Inc.(b)

    12,715     $ 2,679,178  

HEICO Corp.(c)

    29,767       5,019,907  

Howmet Aerospace, Inc.

    66,871       2,961,716  

TransDigm Group, Inc.

    4,010       3,067,650  
   

 

 

 
      13,728,451  
   

 

 

 

Agricultural & Farm Machinery-5.30%

 

 

Deere & Co.

    7,953       3,006,393  

Toro Co. (The)

    36,430       3,798,192  
   

 

 

 
      6,804,585  
   

 

 

 

Building Products-10.31%

 

 

A.O. Smith Corp.

    60,255       4,114,814  

Builders FirstSource, Inc.(b)

    46,896       4,444,334  

Trane Technologies PLC

    25,226       4,687,243  
   

 

 

 
      13,246,391  
   

 

 

 

Cargo Ground Transportation-8.76%

 

 

ArcBest Corp.

    25,954       2,450,058  

Old Dominion Freight Line, Inc.

    13,724       4,397,032  

Saia, Inc.(b)(c)

    14,800       4,406,996  
   

 

 

 
      11,254,086  
   

 

 

 

Construction & Engineering-11.76%

 

 

Comfort Systems USA, Inc.

    15,295       2,286,449  

Granite Construction, Inc.(c)

    49,084       1,871,573  

MYR Group, Inc.(b)

    15,231       1,949,416  

Quanta Services, Inc.

    23,879       4,050,834  

Sterling Infrastructure, Inc.(b)

    43,658       1,611,853  

WillScot Mobile Mini Holdings Corp.(b)

    73,308       3,328,183  
   

 

 

 
      15,098,308  
   

 

 

 

Diversified Support Services-6.72%

 

 

Cintas Corp.

    8,661       3,947,424  

Copart, Inc.(b)

    59,188       4,678,811  
   

 

 

 
      8,626,235  
   

 

 

 

Electrical Components & Equipment-8.74%

 

 

AMETEK, Inc.

    34,266       4,726,310  

Encore Wire Corp.(c)

    12,297       1,922,390  

Hubbell, Inc.

    16,969       4,570,091  
   

 

 

 
      11,218,791  
   

 

 

 

Electronic Equipment & Instruments-1.13%

 

 

Napco Security Technologies, Inc.(b)(c)

    46,874       1,453,094  
   

 

 

 

Electronic Manufacturing Services-2.17%

 

 

Jabil, Inc.

    35,695       2,789,564  
   

 

 

 

Environmental & Facilities Services-1.11%

 

 

CECO Environmental Corp.(b)

    122,451       1,421,656  
   

 

 

 

Human Resource & Employment Services-1.60%

 

 

Insperity, Inc.(c)

    16,807       2,058,185  
   

 

 

 

Industrial Machinery & Supplies & Components-4.52%

 

IDEX Corp.

    13,118       2,706,506  

Illinois Tool Works, Inc.

    12,828       3,103,606  
   

 

 

 
      5,810,112  
   

 

 

 
        Shares         Value  

Oil & Gas Storage & Transportation-1.39%

 

Dorian LPG Ltd.

    80,456     $ 1,787,732  
   

 

 

 

Paper & Plastic Packaging Products & Materials-3.65%

 

Graphic Packaging Holding Co.

    190,180       4,689,839  
   

 

 

 

Research & Consulting Services-4.34%

 

CBIZ, Inc.(b)

    34,558       1,820,861  

CRA International, Inc.

    14,566       1,531,469  

KBR, Inc.(c)

    39,238       2,225,972  
   

 

 

 
      5,578,302  
   

 

 

 

Trading Companies & Distributors-15.25%

 

Applied Industrial Technologies, Inc.

    14,373       1,949,841  

GMS, Inc.(b)

    29,398       1,706,848  

McGrath RentCorp.

    20,957       1,862,658  

Rush Enterprises, Inc., Class A

    30,199       1,603,869  

Triton International Ltd. (Bermuda)(c)

    44,924       3,713,867  

W.W. Grainger, Inc.

    6,517       4,533,030  

WESCO International, Inc.

    29,306       4,220,064  
   

 

 

 
      19,590,177  
   

 

 

 

Transaction & Payment Processing Services-2.57%

 

Fiserv, Inc.(b)

    27,063       3,304,934  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $116,180,160)

 

    128,460,442  
   

 

 

 
Money Market Funds-0.13%

 

Invesco Government & Agency Portfolio,
Institutional Class, 4.78%(d)(e)
(Cost $166,062)

    166,062       166,062  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.14%
(Cost $116,346,222)

 

    128,626,504  
   

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-10.37%

 

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

    3,700,195       3,700,195  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    9,618,556       9,618,556  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $13,318,894)

      13,318,751  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-110.51%
(Cost $129,665,116)

 

    141,945,255  

OTHER ASSETS LESS LIABILITIES-(10.51)%

 

    (13,501,814
   

 

 

 

NET ASSETS-100.00%

 

  $ 128,443,441  
   

 

 

 

 

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

 

  46  

 

 

 

 


 

Invesco DWA Industrials Momentum ETF (PRN)–(continued)

April 30, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

     Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 253,005      $ 5,534,997      $ (5,621,940     $ -     $ -     $ 166,062      $ 5,592
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        2,482,930        45,967,804        (44,750,539       -       -       3,700,195        117,415 *
Invesco Private Prime Fund        5,791,524        104,549,357        (100,718,246 )       (143 )       (3,936 )       9,618,556        315,074 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 8,527,459      $ 156,052,158      $ (151,090,725     $ (143 )     $ (3,936 )     $ 13,484,813      $ 438,081
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  47  

 

 

 

 


 

Invesco DWA Technology Momentum ETF (PTF)

April 30, 2023

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-99.99%

 

Alternative Carriers-1.90%

   

Iridium Communications, Inc.

    69,013     $ 4,380,255  
   

 

 

 

Application Software-34.62%

   

Agilysys, Inc.(b)

    42,018       3,279,085  

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

    52,500       3,625,125  

Cadence Design Systems, Inc.(b)

    47,877       10,027,838  

Intapp, Inc.(b)

    85,682       3,454,698  

Intuit, Inc.

    25,614       11,371,335  

Manhattan Associates, Inc.(b)

    27,697       4,588,839  

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

    754,943       7,602,276  

MicroStrategy, Inc., Class A(b)(c)

    20,298       6,665,457  

Riot Platforms, Inc.(b)(c)

    749,513       8,964,175  

Samsara, Inc., Class A(b)(c)

    212,731       3,839,795  

Smartsheet, Inc., Class A(b)

    108,682       4,441,833  

SPS Commerce, Inc.(b)(c)

    32,584       4,799,623  

Synopsys, Inc.(b)

    19,046       7,072,161  
   

 

 

 
      79,732,240  
   

 

 

 

Communications Equipment-2.99%

   

Arista Networks, Inc.(b)

    42,934       6,876,310  
   

 

 

 

Electronic Components-1.72%

   

Belden, Inc.

    50,117       3,953,730  
   

 

 

 

Internet Services & Infrastructure-4.17%

 

Fastly, Inc., Class A(b)(c)

    359,321       5,310,764  

Squarespace, Inc., Class A(b)

    138,255       4,299,731  
   

 

 

 
      9,610,495  
   

 

 

 

Semiconductor Materials & Equipment-10.11%

 

Axcelis Technologies, Inc.(b)(c)

    66,103       7,819,985  

KLA Corp.

    21,651       8,368,977  

Onto Innovation, Inc.(b)

    51,011       4,130,871  

PDF Solutions, Inc.(b)

    82,293       2,966,663  
   

 

 

 
      23,286,496  
   

 

 

 

Semiconductors-28.39%

   

Allegro MicroSystems, Inc. (Japan)(b)(c)

    133,936       4,790,891  

Broadcom, Inc.

    10,006       6,268,759  

First Solar, Inc.(b)

    42,422       7,745,409  

Impinj, Inc.(b)(c)

    70,122       6,199,486  

indie Semiconductor, Inc., A Shares (China)(b)(c)

    369,510       2,797,191  

Lattice Semiconductor Corp.(b)

    111,487       8,885,514  

MACOM Technology Solutions Holdings, Inc.(b)(c)

    71,041       4,144,532  

Microchip Technology, Inc.

    62,374       4,552,678  

Navitas Semiconductor Corp.(b)(c)

    426,288       2,272,115  

ON Semiconductor Corp.(b)

    112,853       8,120,902  
        Shares         Value  

Semiconductors-(continued)

   

Rambus, Inc.(b)

    107,116     $ 4,749,523  

Texas Instruments, Inc.

    29,073       4,861,005  
   

 

 

 
      65,388,005  
   

 

 

 

Systems Software-6.12%

   

Fortinet, Inc.(b)

    107,164       6,756,690  

Microsoft Corp.

    23,898       7,342,900  
   

 

 

 
      14,099,590  
   

 

 

 

Technology Distributors-4.19%

   

CDW Corp.

    34,467       5,845,259  

Insight Enterprises, Inc.(b)(c)

    31,378       3,795,169  
   

 

 

 
      9,640,428  
   

 

 

 

Technology Hardware, Storage & Peripherals-5.78%

 

 

Avid Technology, Inc.(b)(c)

    135,295       3,992,555  

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

    88,332       9,312,843  
   

 

 

 
      13,305,398  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $213,250,338)

 

    230,272,947  
   

 

 

 
Money Market Funds-0.13%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $292,096)

    292,096       292,096  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.12%
(Cost $213,542,434)

 

    230,565,043  
   

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-22.66%

 

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

    14,253,080       14,253,080  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    37,945,789       37,945,789  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $52,200,265)

 

    52,198,869  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-122.78%
(Cost $265,742,699)

 

    282,763,912  

OTHER ASSETS LESS LIABILITIES-(22.78)%

 

    (52,467,045
   

 

 

 

NET ASSETS-100.00%

    $ 230,296,867  
   

 

 

 

 

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

 

  48  

 

 

 

 


 

Invesco DWA Technology Momentum ETF (PTF)–(continued)

April 30, 2023

    

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

     Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                 
Invesco Government & Agency Portfolio, Institutional Class      $ 357,742      $ 2,562,487      $ (2,628,133     $ -     $ -      $ 292,096      $ 9,665
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund        9,721,813        122,086,838        (117,555,571       -       -        14,253,080        286,394 *
Invesco Private Prime Fund        22,682,210        250,373,867        (235,109,666 )       (1,485 )       863        37,945,789        779,812 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total      $ 32,761,765      $ 375,023,192      $ (355,293,370     $ (1,485 )     $ 863      $ 52,490,965      $ 1,075,871
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  49  

 

 

 

 


 

Invesco DWA Utilities Momentum ETF (PUI)

April 30, 2023

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-99.89%

 

Construction & Engineering-1.42%

   

MDU Resources Group, Inc.

    21,000     $ 613,620  
   

 

 

 

Electric Utilities-46.42%

   

Alliant Energy Corp.

    30,656       1,690,372  

American Electric Power Co., Inc.

    9,005       832,242  

Constellation Energy Corp.

    19,112       1,479,269  

Duke Energy Corp.

    15,011       1,484,288  

Evergy, Inc.

    16,956       1,053,137  

Eversource Energy

    12,319       956,078  

Exelon Corp.

    30,122       1,278,378  

FirstEnergy Corp.

    20,374       810,885  

IDACORP, Inc.

    6,545       727,280  

NextEra Energy, Inc.(b)

    25,759       1,973,912  

Otter Tail Corp.(b)

    12,666       911,319  

PG&E Corp.(b)(c)

    88,004       1,505,748  

Pinnacle West Capital Corp.

    17,417       1,366,538  

Portland General Electric Co.(b)

    16,406       830,472  

Southern Co. (The)

    23,712       1,744,018  

Xcel Energy, Inc.

    20,895       1,460,769  
   

 

 

 
      20,104,705  
   

 

 

 

Gas Utilities-12.60%

   

Atmos Energy Corp.(b)

    16,247       1,854,433  

Chesapeake Utilities Corp.

    4,923       607,990  

National Fuel Gas Co.

    10,856       606,850  

New Jersey Resources Corp.(b)

    17,301       893,424  

ONE Gas, Inc.(b)

    9,960       766,422  

UGI Corp.(b)

    21,525       729,267  
   

 

 

 
      5,458,386  
   

 

 

 

Independent Power Producers & Energy Traders-4.02%

 

AES Corp. (The)

    40,503       958,301  

Vistra Corp.

    32,859       784,016  
   

 

 

 
      1,742,317  
   

 

 

 

Multi-Utilities-22.58%

   

Ameren Corp.(b)

    9,883       879,291  

CenterPoint Energy, Inc.

    32,121       978,727  

CMS Energy Corp.

    18,936       1,178,955  

DTE Energy Co.

    14,552       1,635,790  

NiSource, Inc.

    61,331       1,745,480  

Sempra Energy

    11,820       1,837,892  

WEC Energy Group, Inc.

    15,842       1,523,525  
   

 

 

 
      9,779,660  
   

 

 

 
    Shares     Value  

Oil & Gas Storage & Transportation-4.55%

 

ONEOK, Inc.

    30,127     $ 1,970,607  
   

 

 

 

Renewable Electricity-1.65%

   

Clearway Energy, Inc., Class C(b)

    23,487       713,300  
   

 

 

 

Water Utilities-6.65%

   

American Water Works Co., Inc.

    10,275       1,523,269  

Essential Utilities, Inc.

    15,797       674,532  

Middlesex Water Co.

    9,325       680,538  
   

 

 

 
      2,878,339  
   

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $44,898,256)

 

    43,260,934  
   

 

 

 
Money Market Funds-0.27%

 

Invesco Government & Agency Portfolio, Institutional Class, 4.78%(d)(e)
(Cost $116,870)

    116,870       116,870  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.16%
(Cost $45,015,126)

 

    43,377,804  
   

 

 

 
Investments Purchased with Cash Collateral
from Securities on Loan

 

Money Market Funds-21.97%

 

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

    2,664,890       2,664,890  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    6,852,888       6,852,888  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $9,517,820)

 

    9,517,778  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-122.13%
(Cost $54,532,946)

 

    52,895,582  

OTHER ASSETS LESS LIABILITIES-(22.13)%

 

    (9,586,084
   

 

 

 

NET ASSETS-100.00%

    $ 43,309,498  
   

 

 

 

 

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

 

  50  

 

 

 

 


 

Invesco DWA Utilities Momentum ETF (PUI)–(continued)

April 30, 2023

    

 

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 April 30, 2023.

(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 April 30, 2023.

 

     Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
(Loss)
  Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 141,321      $ 2,255,556      $ (2,280,008     $ -     $ 1     $ 116,870      $ 3,707
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        935,498        26,439,596        (24,710,204       -       -       2,664,890        36,318 *
Invesco Private Prime Fund        2,182,493        58,301,333        (53,629,976 )       (42 )       (920 )       6,852,888        99,399 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 3,259,312      $ 86,996,485      $ (80,620,188     $ (42 )     $ (919 )     $ 9,634,648      $ 139,424
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  51  

 

 

 

 


 

Invesco NASDAQ Internet ETF (PNQI)

April 30, 2023

Schedule of Investments(a)

 

        Shares         Value  
Common Stocks & Other Equity Interests-100.04%

 

Advertising-0.08%

 

 

Criteo S.A., ADR (France)(b)

    14,199     $ 446,559  
   

 

 

 

Apparel Retail-0.02%

   

Lands’ End, Inc.(b)(c)

    8,043       57,668  

Stitch Fix, Inc., Class A(b)(c)

    20,785       70,877  
   

 

 

 
      128,545  
   

 

 

 

Application Software-12.13%

   

Adobe, Inc.(b)

    59,618       22,509,372  

Alarm.com Holdings, Inc.(b)(c)

    12,079       576,048  

Box,Inc.,Class A(b)(c)

    34,783       920,358  

Consensus Cloud Solutions, Inc.(b)(c)

    4,826       180,155  

DocuSign, Inc.(b)

    48,937       2,419,445  

Dropbox, Inc., Class A(b)

    67,177       1,366,380  

Envestnet, Inc.(b)(c)

    13,147       833,257  

LivePerson, Inc.(b)

    18,358       84,998  

Momentive Global, Inc.(b)

    36,437       342,143  

New Relic, Inc.(b)

    16,765       1,198,195  

Open Text Corp. (Canada)(c)

    65,825       2,494,109  

PROS Holdings, Inc.(b)(c)

    11,165       316,751  

Salesforce, Inc.(b)

    118,044       23,416,388  

SPS Commerce, Inc.(b)(c)

    8,838       1,301,837  

Unity Software, Inc.(b)(c)

    91,210       2,459,934  

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

    59,787       3,672,715  
   

 

 

 
      64,092,085  
   

 

 

 

Broadline Retail-17.04%

   

Alibaba Group Holding Ltd., ADR (China)(b)(c)

    211,895       17,945,388  

Amazon.com, Inc.(b)

    409,915       43,225,537  

eBay, Inc.

    130,666       6,066,822  

Global-e Online Ltd. (Israel)(b)(c)

    38,082       1,061,726  

JD.com, Inc., ADR (China)(c)

    112,179       4,007,034  

MercadoLibre, Inc. (Brazil)(b)

    12,232       15,626,258  

Vipshop Holdings Ltd., ADR (China)(b)

    131,555       2,065,413  
   

 

 

 
      89,998,178  
   

 

 

 

Casinos & Gaming-0.46%

   

DraftKings, Inc., Class A(b)(c)

    109,918       2,408,303  
   

 

 

 

Commercial Printing-0.06%

   

Cimpress PLC (Ireland)(b)(c)

    6,387       331,805  
   

 

 

 

Data Processing & Outsourced Services-0.10%

 

Dlocal Ltd. (Uruguay)(b)(c)

    39,411       551,754  
   

 

 

 

Education Services-0.13%

   

2U, Inc.(b)(c)

    19,294       106,889  

Chegg, Inc.(b)(c)

    30,800       553,784  
   

 

 

 
      660,673  
   

 

 

 

Financial Exchanges & Data-0.45%

   

Coinbase Global, Inc., Class A(b)(c)

    44,680       2,403,337  
   

 

 

 

Health Care Technology-0.22%

   

GoodRx Holdings, Inc., Class A(b)(c)

    20,069       93,722  

Teladoc Health, Inc.(b)(c)

    39,410       1,045,548  
   

 

 

 
      1,139,270  
   

 

 

 

Homefurnishing Retail-0.18%

   

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

    10,960       223,145  

Wayfair, Inc., Class A(b)(c)

    20,649       719,205  
   

 

 

 
      942,350  
   

 

 

 
        Shares         Value  

Hotels, Resorts & Cruise Lines-7.56%

 

Airbnb, Inc., Class A(b)(c)

    99,525     $ 11,910,157  

Booking Holdings, Inc.(b)

    7,652       20,555,644  

Expedia Group, Inc.(b)

    35,978       3,380,493  

MakeMyTrip Ltd. (India)(b)(c)

    15,967       374,266  

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

    105,355       3,741,156  
   

 

 

 
      39,961,716  
   

 

 

 

Human Resource & Employment Services-0.50%

 

 

Paylocity Holding Corp.(b)(c)

    13,573       2,623,525  
   

 

 

 

Interactive Home Entertainment-2.88%

 

Bilibili, Inc., ADR (China)(b)(c)

    29,972       610,230  

NetEase, Inc., ADR (China)(c)

    31,349       2,794,136  

Roblox Corp., Class A(b)

    134,783       4,798,275  

Sea Ltd., ADR (Singapore)(b)(c)

    91,936       7,002,765  
   

 

 

 
      15,205,406  
   

 

 

 

Interactive Media & Services-21.10%

   

Alphabet, Inc., Class C(b)

    427,755       46,291,646  

Autohome, Inc., ADR (China)

    16,317       483,799  

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

    37,250       4,492,723  

Bumble, Inc., Class A(b)

    31,561       574,726  

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

    16,101       315,097  

Eventbrite, Inc., Class A(b)

    19,942       144,978  

Hello Group, Inc., ADR (China)

    42,070       351,705  

JOYY, Inc., ADR (China)

    14,114       429,489  

Meta Platforms, Inc., Class A(b)

    220,797       53,061,935  

Shutterstock, Inc.(c)

    8,723       584,441  

Snap, Inc., Class A(b)

    323,010       2,813,417  

TripAdvisor, Inc.(b)(c)

    31,193       553,052  

Yelp, Inc.(b)(c)

    16,925       506,396  

Ziff Davis, Inc.(b)(c)

    11,485       840,013  
   

 

 

 
      111,443,417  
   

 

 

 

Internet Services & Infrastructure-5.68%

 

Akamai Technologies, Inc.(b)

    38,034       3,117,647  

Brightcove, Inc.(b)

    10,315       42,704  

Fastly, Inc., Class A(b)

    30,520       451,086  

GoDaddy, Inc., Class A(b)

    37,365       2,827,783  

Okta, Inc.(b)

    37,178       2,547,808  

Shopify, Inc., Class A (Canada)(b)

    291,367       14,116,731  

VeriSign, Inc.(b)

    25,526       5,661,667  

Wix.com Ltd. (Israel)(b)

    14,307       1,248,000  
   

 

 

 
      30,013,426  
   

 

 

 

Movies & Entertainment-12.45%

   

Netflix, Inc.(b)

    59,955       19,780,953  

Roku, Inc., Class A(b)(c)

    29,859       1,678,374  

Spotify Technology S.A.(b)

    47,074       6,289,087  

Walt Disney Co. (The)(b)(c)

    371,162       38,044,105  
   

 

 

 
      65,792,519  
   

 

 

 

Other Specialty Retail-0.19%

   

1-800-Flowers.com, Inc., Class A(b)(c)

    9,175       84,502  

Chewy, Inc., Class A(b)(c)

    27,298       846,511  

PetMed Express, Inc.(c)

    5,131       78,863  
   

 

 

 
      1,009,876  
   

 

 

 

 

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

 

  52  

 

 

 

 


 

Invesco NASDAQ Internet ETF (PNQI)–(continued)

April 30, 2023

    

 

        Shares         Value  

Passenger Ground Transportation-3.05%

 

Lyft,Inc.,Class A(b)

    89,924     $ 921,721  

Uber Technologies, Inc.(b)

    489,171       15,188,760  
   

 

 

 
      16,110,481  
   

 

 

 

Real Estate Services-0.38%

   

Redfin Corp.(b)(c)

    26,707       198,967  

Zillow Group, Inc., Class C(b)(c)

    41,528       1,808,129  
   

 

 

 
      2,007,096  
   

 

 

 

Research & Consulting Services-1.44%

 

CoStar Group, Inc.(b)

    99,000       7,618,050  
   

 

 

 

Restaurants-1.03%

   

DoorDash, Inc., Class A(b)(c)

    88,569       5,419,537  
   

 

 

 

Systems Software-9.13%

   

Gitlab, Inc., Class A(b)(c)

    22,196       673,870  

Microsoft Corp.

    154,864       47,583,513  
   

 

 

 
      48,257,383  
   

 

 

 

Transaction & Payment Processing Services-3.78%

 

PayPal Holdings, Inc.(b)

    262,407       19,942,932  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.04%
(Cost $596,292,627)

 

    528,508,223  
   

 

 

 
        Shares         Value  
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-5.84%

 

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

    8,626,317     $ 8,626,317  

Invesco Private Prime Fund, 4.99%(d)(e)(f)

    22,188,871       22,188,871  
   

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $30,815,188)

 

    30,815,188  
   

 

 

 

TOTAL INVESTMENTS IN SECURITIES-105.88%
(Cost $627,107,815)

 

    559,323,411  

OTHER ASSETS LESS LIABILITIES-(5.88)%

 

    (31,038,835
   

 

 

 

NET ASSETS-100.00%.

    $ 528,284,576  
   

 

 

 

 

Investment Abbreviations:

ADR-American Depositary Receipt

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at April 30, 2023.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2023.

 

    Value
April 30, 2022
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
(Depreciation)
  Realized
Gain
   Value
April 30, 2023
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class     $ 376,768      $ 1,756,073      $ (2,132,841     $ -     $ -      $ -      $ 2,296
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund       14,297,896        276,041,101        (281,712,680       -       -        8,626,317        434,314 *
Invesco Private Prime Fund       33,326,145        530,519,452        (541,658,347 )       (1,316 )       2,937        22,188,871        1,181,215 *
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 
Total     $ 48,000,809      $ 808,316,626      $ (825,503,868     $ (1,316 )     $ 2,937      $ 30,815,188      $ 1,617,825
   

 

 

      

 

 

      

 

 

     

 

 

     

 

 

      

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of April 30, 2023.

(f) 

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

 

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

 

  53  

 

 

 

 


 

 

(This Page Intentionally Left Blank)

 

  54  

 

 

 

 


 

Statements of Assets and Liabilities

April 30, 2023

 

    Invesco DWA
Basic Materials
Momentum
ETF (PYZ)
   Invesco DWA
Consumer Cyclicals
Momentum
ETF (PEZ)
   Invesco DWA
Consumer Staples
Momentum
ETF (PSL)
   Invesco DWA
Energy
Momentum
ETF (PXI)
Assets:                   

Unaffiliated investments in securities, at value(a)

    $ 156,548,440      $ 22,746,867      $ 121,496,364      $ 95,309,121

Affiliated investments in securities, at value

      21,016,730        7,265,483        14,219,236        20,953,198

Receivable for:

                  

Dividends

      68,654        7,834        225,047        37,606

Securities lending

      3,942        867        1,028        2,347

Investments sold

      -        -        881,970        2,311,992

Fund shares sold

      -        -        -        -

Expenses absorbed

      -        4,131        -        -

Other assets

      -        12,983        -        -
   

 

 

      

 

 

      

 

 

      

 

 

 

Total assets

      177,637,766        30,038,165        136,823,645        118,614,264
   

 

 

      

 

 

      

 

 

      

 

 

 
Liabilities:                   

Due to custodian

      -        -        -        -

Payable for:

                  

Investments purchased

      -        -        126,001        -

Investments purchased - affiliated broker

      -        -        12,623        -

Collateral upon return of securities loaned

      20,836,624        7,120,694        14,072,672        20,732,151

Fund shares repurchased

      -        -        883,012        2,313,472

Accrued unitary management fees

      -        -        -        -

Accrued advisory fees

      45,677        -        33,307        25,233

Accrued trustees’ and officer’s fees

      54,264        49,291        55,336        60,290

Accrued expenses

      164,743        103,156        143,235        157,760
   

 

 

      

 

 

      

 

 

      

 

 

 

Total liabilities

      21,101,308        7,273,141        15,326,186        23,288,906
   

 

 

      

 

 

      

 

 

      

 

 

 
Net Assets     $ 156,536,458      $ 22,765,024      $ 121,497,459      $ 95,325,358
   

 

 

      

 

 

      

 

 

      

 

 

 
Net assets consist of:                   

Shares of beneficial interest

    $ 243,348,232      $ 106,733,148      $ 226,775,597      $ 297,701,307

Distributable earnings (loss)

      (86,811,774 )        (83,968,124 )        (105,278,138 )        (202,375,949 )
   

 

 

      

 

 

      

 

 

      

 

 

 
Net Assets     $ 156,536,458      $ 22,765,024      $ 121,497,459      $ 95,325,358
   

 

 

      

 

 

      

 

 

      

 

 

 

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

      1,910,000        330,000        1,370,000        2,460,000

Net asset value

    $ 81.96      $ 68.98      $ 88.68      $ 38.75
   

 

 

      

 

 

      

 

 

      

 

 

 

Market price

    $ 81.92      $ 69.03      $ 88.68      $ 38.73
   

 

 

      

 

 

      

 

 

      

 

 

 

Unaffiliated investments in securities, at cost

    $ 144,418,778      $ 20,926,159      $ 108,123,643      $ 93,659,850
   

 

 

      

 

 

      

 

 

      

 

 

 

Affiliated investments in securities, at cost

    $ 21,017,059      $ 7,265,527      $ 14,219,251      $ 20,953,198
   

 

 

      

 

 

      

 

 

      

 

 

 

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

    $ 20,652,522      $ 7,050,169      $ 13,790,006      $ 20,630,674
   

 

 

      

 

 

      

 

 

      

 

 

 

 

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

 

  55  

 

 

 

 


 

 

Invesco DWA
Financial
Momentum
ETF (PFI)
     Invesco DWA
Healthcare
Momentum
ETF (PTH)
     Invesco DWA
Industrials
Momentum
ETF (PRN)
     Invesco DWA
Technology
Momentum
ETF (PTF)
     Invesco DWA
Utilities
Momentum
ETF (PUI)
     Invesco
NASDAQ
Internet
ETF (PNQI)
 
                       
$ 28,848,872      $ 181,179,359      $ 128,460,442      $ 230,272,947      $ 43,260,934      $ 528,508,223  
  4,003,995        42,949,245        13,484,813        52,490,965        9,634,648        30,815,188  
              
  28,681        1,200        28,157        1,082        80,132        97,592  
  527        4,004        1,356        53,203        470        12,354  
  -        -        -        -        -        -  
  -        -        -        1,197,684        -        -  
  -        -        -        -        -        -  
  8,467        -        -        -        -        -  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  32,890,542        224,133,808        141,974,768        284,015,881        52,976,184        559,433,357  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                       
  -        -        -        -        -        75,539  
              
  -        -        -        1,197,047        -        -  
  -        -        -        -        -        -  
  3,869,020        42,677,158        13,318,894        52,200,265        9,517,820        30,815,188  
  -        -        -        -        -        -  
  -        -        -        -        -        258,054  
  1,061        50,685        44,956        72,389        6,624        -  
  48,782        61,197        55,462        55,232        51,916        -  
  99,264        200,912        112,015        194,081        90,326        -  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  4,018,127        42,989,952        13,531,327        53,719,014        9,666,686        31,148,781  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 28,872,415      $ 181,143,856      $ 128,443,441      $ 230,296,867      $ 43,309,498      $ 528,284,576  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                       
$ 74,992,941      $ 498,800,647      $ 234,260,072      $ 415,752,661      $ 76,168,709      $ 784,003,841  
  (46,120,526      (317,656,791      (105,816,631      (185,455,794      (32,859,211      (255,719,265

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 28,872,415      $ 181,143,856      $ 128,443,441      $ 230,296,867      $ 43,309,498      $ 528,284,576  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  710,000        1,510,000        1,360,000        1,910,000        1,290,000        3,760,000  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 40.67      $ 119.96      $ 94.44      $ 120.57      $ 33.57      $ 140.50  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 40.63      $ 119.92      $ 94.45      $ 120.53      $ 33.57      $ 140.52  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 27,581,996      $ 157,811,874      $ 116,180,160      $ 213,250,338      $ 44,898,256      $ 596,292,627  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 4,004,093      $ 42,949,245      $ 13,484,956      $ 52,492,361      $ 9,634,690      $ 30,815,188  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 3,811,292      $ 42,074,043      $ 13,298,996      $ 51,823,881      $ 9,319,923      $ 30,450,468  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  56  

 

 

 

 


 

Statements of Operations

For the year ended April 30, 2023

 

    Invesco DWA
Basic Materials
Momentum
ETF (PYZ)
   Invesco DWA
Consumer Cyclicals
Momentum
ETF (PEZ)
   Invesco DWA
Consumer Staples
Momentum
ETF (PSL)
   Invesco DWA
Energy
Momentum
ETF (PXI)
Investment income:                   

Unaffiliated dividend income

    $ 2,394,910      $ 316,339      $ 3,163,512      $ 7,946,299

Affiliated dividend income

      5,335        4,253        5,996        8,298

Securities lending income, net

      186,864        46,607        27,161        337,063

Foreign withholding tax

      (703 )        -        -        -
   

 

 

      

 

 

      

 

 

      

 

 

 

Total investment income

      2,586,406        367,199        3,196,669        8,291,660
   

 

 

      

 

 

      

 

 

      

 

 

 
Expenses:                   

Unitary management fees

      -        -        -        -

Advisory fees

      714,079        131,162        604,725        1,043,387

Sub-licensing fees

      214,225        39,349        181,418        313,018

Accounting & administration fees

      22,602        14,327        20,350        28,198

Professional fees

      36,657        35,833        36,522        37,339

Printing fees

      20,372        19,822        13,875        16,784

Custodian & transfer agent fees

      15,735        3,799        5,493        9,246

Trustees’ and officer’s fees

      5,021        4,194        4,627        5,264

Recapture (Note 3)

      -        -        -        -

Other expenses

      20,008        17,200        19,206        17,171
   

 

 

      

 

 

      

 

 

      

 

 

 

Total expenses

      1,048,699        265,686        886,216        1,470,407
   

 

 

      

 

 

      

 

 

      

 

 

 

Less: Waivers

      (191,976 )        (108,420 )        (160,741 )        (218,641 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Net expenses

      856,723        157,266        725,475        1,251,766
   

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income (loss)

      1,729,683        209,933        2,471,194        7,039,894
   

 

 

      

 

 

      

 

 

      

 

 

 
Realized and unrealized gain (loss) from:                   

Net realized gain (loss) from:

                  

Unaffiliated investment securities

      (32,435,904 )        (6,886,414 )        (18,239,004 )        (11,968,941 )

Affiliated investment securities

      567        (246 )        3,338        (2,703 )

In-kind redemptions

      2,091,883        (675,162 )        10,706,448        37,629,090

Foreign currencies

      (25 )        -        -        -
   

 

 

      

 

 

      

 

 

      

 

 

 

Net realized gain (loss)

      (30,343,479 )        (7,561,822 )        (7,529,218 )        25,657,446
   

 

 

      

 

 

      

 

 

      

 

 

 

Change in net unrealized appreciation (depreciation) of:

                  

Unaffiliated investment securities

      2,155,069        6,060,412        14,037,469        (37,154,860 )

Affiliated investment securities

      (329 )        (44 )        (1,498 )        (405 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Change in net unrealized appreciation (depreciation)

      2,154,740        6,060,368        14,035,971        (37,155,265 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Net realized and unrealized gain (loss)

      (28,188,739 )        (1,501,454 )        6,506,753        (11,497,819 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    $ (26,459,056 )      $ (1,291,521 )      $ 8,977,947      $ (4,457,925 )
   

 

 

      

 

 

      

 

 

      

 

 

 

 

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

 

  57  

 

 

 

 


 

 

Invesco DWA
Financial
Momentum
ETF (PFI)
     Invesco DWA
Healthcare
Momentum
ETF (PTH)
     Invesco DWA
Industrials
Momentum
ETF (PRN)
     Invesco DWA
Technology
Momentum
ETF (PTF)
     Invesco DWA
Utilities
Momentum
ETF (PUI)
     Invesco
NASDAQ
Internet
ETF (PNQI)
 
                       
$ 1,083,540      $ 628,898      $ 1,808,550      $ 802,684      $ 1,642,183      $ 1,014,502  
  4,058        12,629        5,592        9,665        3,707        2,296  
  8,353        669,145        22,157        107,352        6,166        141,628  
  (5,885      -        -        (14,990      -        (8,054

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  1,090,066        1,310,672        1,836,299        904,711        1,652,056        1,150,372  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
              
  -        -        -        -        -        2,931,273  
  266,676        1,138,276        602,224        1,030,432        307,087        -  
  49,714        341,484        60,607        309,131        92,127        -  
  16,493        34,053        20,775        25,352        7,098        -  
  36,023        37,400        36,473        37,030        36,121        -  
  21,587        36,410        28,642        28,291        13,052        -  
  6,412        8,775        6,508        7,600        3,912        -  
  4,734        5,451        4,821        5,565        4,362        -  
  -        -        1,932        -        -        -  
  21,725        21,109        21,731        25,535        15,281        -  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  423,364        1,622,958        783,713        1,468,936        479,040        2,931,273  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  (103,486      (257,421      (61,210      (232,680      (110,649      (94

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  319,878        1,365,537        722,503        1,236,256        368,391        2,931,179  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  770,188        (54,865      1,113,796        (331,545      1,283,665        (1,780,807

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
              
              
  (11,853,314      (57,560,554      (19,626,856      (56,091,830      (4,344,856      (43,839,038
  153        1,137        (3,936      863        (919      2,937  
  (1,178,095      3,006,803        1,031,624        14,489,761        3,900,346        21,469,610  
  -        -        -        -        -        -  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  (13,031,256      (54,552,614      (18,599,168      (41,601,206      (445,429      (22,366,491

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
              
  6,634,394        49,430,155        24,217,616        47,165,956        (5,695,680      24,296,676  
  (98      (426      (143      (1,485      (42      (1,316

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  6,634,296        49,429,729        24,217,473        47,164,471        (5,695,722      24,295,360  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  (6,396,960      (5,122,885      5,618,305        5,563,265        (6,141,151      1,928,869  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ (5,626,772    $ (5,177,750    $ 6,732,101      $ 5,231,720      $ (4,857,486    $ 148,062  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  58  

 

 

 

 


 

Statements of Changes in Net Assets

For the years ended April 30, 2023 and 2022

 

    Invesco DWA Basic Materials
Momentum ETF (PYZ)
   Invesco DWA Consumer Cyclicals
Momentum ETF (PEZ)
    2023    2022    2023    2022
Operations:                   

Net investment income (loss)

    $ 1,729,683      $ 681,094      $ 209,933      $ 256,531

Net realized gain (loss)

      (30,343,479 )        8,809,809        (7,561,822 )        (3,638,383 )

Change in net unrealized appreciation (depreciation)

      2,154,740        (4,279,541 )        6,060,368        (19,881,708 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

      (26,459,056 )        5,211,362        (1,291,521 )        (23,263,560 )
   

 

 

      

 

 

      

 

 

      

 

 

 
Distributions to Shareholders from:                   

Distributable earnings

      (1,743,728 )        (713,538 )        (181,785 )        (274,022 )
   

 

 

      

 

 

      

 

 

      

 

 

 
Shareholder Transactions:                   

Proceeds from shares sold

      58,858,993        194,398,106        -        108,859,338

Value of shares repurchased

      (61,407,537 )        (126,409,880 )        (14,479,301 )        (173,596,534 )
   

 

 

      

 

 

      

 

 

      

 

 

 

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

      (2,548,544 )        67,988,226        (14,479,301 )        (64,737,196 )
   

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets

      (30,751,328 )        72,486,050        (15,952,607 )        (88,274,778 )
   

 

 

      

 

 

      

 

 

      

 

 

 
Net assets:                   

Beginning of year

      187,287,786        114,801,736        38,717,631        126,992,409
   

 

 

      

 

 

      

 

 

      

 

 

 

End of year

    $ 156,536,458      $ 187,287,786      $ 22,765,024      $ 38,717,631
   

 

 

      

 

 

      

 

 

      

 

 

 
Changes in Shares Outstanding:                   

Shares sold

      690,000        2,100,000        -        1,190,000

Shares repurchased

      (820,000 )        (1,400,000 )        (220,000 )        (2,060,000 )

Shares outstanding, beginning of year

      2,040,000        1,340,000        550,000        1,420,000
   

 

 

      

 

 

      

 

 

      

 

 

 

Shares outstanding, end of year

      1,910,000        2,040,000        330,000        550,000
   

 

 

      

 

 

      

 

 

      

 

 

 

 

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

 

  59  

 

 

 

 


 

 

Invesco DWA Consumer
Staples Momentum ETF (PSL)
     Invesco DWA Energy
Momentum ETF (PXI)
     Invesco DWA Financial
Momentum ETF (PFI)
     Invesco DWA Healthcare
Momentum ETF (PTH)
 
2023      2022      2023      2022      2023      2022      2023      2022  
                    
$ 2,471,194      $ 1,470,236      $ 7,039,894      $ 1,580,112      $ 770,188      $ 1,287,670      $ (54,865    $ (2,069,621
  (7,529,218      6,343,307        25,657,446        32,581,657        (13,031,256      (624,663      (54,552,614      (41,069,263
  14,035,971        (19,410,012      (37,155,265      32,988,858        6,634,296        (14,529,598      49,429,729        (51,286,438

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  8,977,947        (11,596,469      (4,457,925      67,150,627        (5,626,772      (13,866,591      (5,177,750      (94,425,322

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                    
  (2,475,873      (1,442,905      (7,195,508      (1,335,094      (816,131      (1,320,002      -        -  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                    
  98,186,163        118,293,134        76,919,560        288,217,685        23,143,715        154,026,851        4,965,922        359,960,194  
  (82,730,990      (116,934,578      (210,643,376      (252,911,675      (71,998,070      (110,378,841      (92,228,741      (550,184,148

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  15,455,173        1,358,556        (133,723,816      35,306,010        (48,854,355      43,648,010        (87,262,819      (190,223,954

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  21,957,247        (11,680,818      (145,377,249      101,121,543        (55,297,258      28,461,417        (92,440,569      (284,649,276

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                    
  99,540,212        111,221,030        240,702,607        139,581,064        84,169,673        55,708,256        273,584,425        558,233,701  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
$ 121,497,459      $ 99,540,212      $ 95,325,358      $ 240,702,607      $ 28,872,415      $ 84,169,673      $ 181,143,856      $ 273,584,425  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                    
  1,170,000        1,330,000        1,760,000        8,510,000        580,000        2,890,000        40,000        2,170,000  
  (980,000      (1,330,000      (5,030,000      (8,480,000      (1,720,000      (2,130,000      (780,000      (3,490,000
  1,180,000        1,180,000        5,730,000        5,700,000        1,850,000        1,090,000        2,250,000        3,570,000  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  1,370,000        1,180,000        2,460,000        5,730,000        710,000        1,850,000        1,510,000        2,250,000  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  60  

 

 

 

 


 

Statements of Changes in Net Assets–(continued)

For the years ended April 30, 2023 and 2022

 

    Invesco DWA Industrials
Momentum ETF (PRN)
     Invesco DWA Technology
Momentum ETF (PTF)
 
    2023      2022      2023      2022  
Operations:           

Net investment income (loss)

  $ 1,113,796      $ 342,575      $ (331,545    $ (923,523

Net realized gain (loss)

    (18,599,168      10,839,783        (41,601,206      4,544,435  

Change in net unrealized appreciation (depreciation)

    24,217,473        (37,772,934      47,164,471        (61,071,017
 

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

    6,732,101        (26,590,576      5,231,720        (57,450,105
 

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Shareholders from:           

Distributable earnings

    (1,148,969      (391,888      -        -  
 

 

 

    

 

 

    

 

 

    

 

 

 
Shareholder Transactions:           

Proceeds from shares sold

    24,825,901        225,521,096        113,251,506        400,259,524  

Value of shares repurchased

    (75,874,027      (339,515,702      (93,625,586      (434,606,833
 

 

 

    

 

 

    

 

 

    

 

 

 

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

    (51,048,126      (113,994,606      19,625,920        (34,347,309
 

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) in net assets

    (45,464,994      (140,977,070      24,857,640        (91,797,414
 

 

 

    

 

 

    

 

 

    

 

 

 
Net assets:           

Beginning of year

    173,908,435        314,885,505        205,439,227        297,236,641  
 

 

 

    

 

 

    

 

 

    

 

 

 

End of year

  $ 128,443,441      $ 173,908,435      $ 230,296,867      $ 205,439,227  
 

 

 

    

 

 

    

 

 

    

 

 

 
Changes in Shares Outstanding:           

Shares sold

    290,000        2,110,000        920,000        2,540,000  

Shares repurchased

    (850,000      (3,260,000      (750,000      (2,880,000

Shares outstanding, beginning of year

    1,920,000        3,070,000        1,740,000        2,080,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding, end of year

    1,360,000        1,920,000        1,910,000        1,740,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

  61  

 

 

 

 


 

 

Invesco DWA Utilities
Momentum ETF (PUI)
     Invesco NASDAQ
Internet ETF (PNQI)
 
2023      2022      2023      2022  
        
$ 1,283,665      $ 992,395      $ (1,780,807    $ (5,131,630
  (445,429      618,594        (22,366,491      27,108,254  
  (5,695,722      363,406        24,295,360        (453,536,469

 

 

    

 

 

    

 

 

    

 

 

 
  (4,857,486      1,974,395        148,062        (431,559,845

 

 

    

 

 

    

 

 

    

 

 

 
        
        
  (1,259,429      (978,385      -        -  

 

 

    

 

 

    

 

 

    

 

 

 
        
  45,958,102        12,709,138        106,828,408        155,935,644  
  (52,293,542      (7,671,363      (135,609,435      (236,899,762

 

 

    

 

 

    

 

 

    

 

 

 
  (6,335,440      5,037,775        (28,781,027      (80,964,118

 

 

    

 

 

    

 

 

    

 

 

 
  (12,452,355      6,033,785        (28,632,965      (512,523,963

 

 

    

 

 

    

 

 

    

 

 

 
        
        
  55,761,853        49,728,068        556,917,541        1,069,441,504  

 

 

    

 

 

    

 

 

    

 

 

 
$ 43,309,498      $ 55,761,853      $ 528,284,576      $ 556,917,541  

 

 

    

 

 

    

 

 

    

 

 

 
        
  1,250,000        350,000        870,000        720,000  
  (1,540,000      (220,000      (1,090,000      (1,120,000
  1,580,000        1,450,000        3,980,000        4,380,000  

 

 

    

 

 

    

 

 

    

 

 

 
  1,290,000        1,580,000        3,760,000        3,980,000  

 

 

    

 

 

    

 

 

    

 

 

 

 

  62  

 

 

 

 


 

Financial Highlights

 

Invesco DWA Basic Materials Momentum ETF (PYZ)

 

    Years Ended April 30,  
    2023     2022      2021      2020     2019  

Per Share Operating Performance:

           

Net asset value at beginning of year

  $ 91.81     $ 85.67      $ 47.51      $ 60.49     $ 66.74  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net investment income(a)

    1.00       0.35        0.47        0.79       0.72  

Net realized and unrealized gain (loss) on investments

    (9.87     6.16        38.31        (12.77     (6.30
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total from investment operations.

    (8.87     6.51        38.78        (11.98     (5.58
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

           

Net investment income

    (0.98     (0.37      (0.62      (1.00     (0.67
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 81.96     $ 91.81      $ 85.67      $ 47.51     $ 60.49  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Market price at end of year(b)

  $ 81.92     $ 91.90      $ 85.68      $ 47.63     $ 60.48  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(c)

    (9.61 )%      7.61      82.25      (19.95 )%      (8.36 )% 

Market Price Total Return(c)

    (9.74 )%      7.70      81.80      (19.74 )%      (8.46 )% 

Ratios/Supplemental Data:

           

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

  $ 156,536     $ 187,288      $ 114,802      $ 35,634     $ 63,518  

Ratio to average net assets of:

           

Expenses, after Waivers

    0.60     0.60      0.60      0.61 %(d)      0.60

Expenses, prior to Waivers.

    0.73     0.70      0.82      0.79 %(d)      0.76

Net investment income

    1.21     0.38      0.70      1.40 %(d)      1.12

Portfolio turnover rate(e)

    86     125      132      90     89

 

(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) 

Ratios include non-recurring costs associated with a proxy statement of 0.01%.

(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.

 

  63  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

 

    Years Ended April 30,  
    2023     2022     2021     2020     2019  

Per Share Operating Performance:

         

Net asset value at beginning of year

  $ 70.40     $ 89.43     $ 41.64     $ 56.86     $ 50.42  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.53       0.22       (0.00 )(b)       0.06       0.08  

Net realized and unrealized gain (loss) on investments

    (1.46     (19.05     47.98       (15.17     6.53  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    (0.93     (18.83     47.98       (15.11     6.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to shareholders from:

         

Net investment income

    (0.49     (0.20     (0.19     (0.11     (0.17
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value at end of year

  $ 68.98     $ 70.40     $ 89.43     $ 41.64     $ 56.86  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market price at end of year(c)

  $ 69.03     $ 70.54     $ 89.37     $ 41.67     $ 56.87  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value Total Return(d)

    (1.27 )%      (21.10 )%      115.43     (26.51 )%      13.15

Market Price Total Return(d)

    (1.40 )%      (20.90 )%      115.13     (26.47 )%      13.03

Ratios/Supplemental Data:

         

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

  $ 22,765     $ 38,718     $ 126,992     $ 16,657     $ 31,271  

Ratio to average net assets of:

         

Expenses, after Waivers

    0.60     0.60     0.60     0.61 %(e)      0.60

Expenses, prior to Waivers

    1.01     0.73     0.80     0.82 %(e)      0.80

Net investment income

    0.80     0.25     (0.00 )%(f)      0.12 %(e)      0.15

Portfolio turnover rate(g)

    192     227     163     176     136

 

(a) 

Based on average shares outstanding.

(b) 

Amount represents less than $(0.005).

(c) 

The mean between the last bid and ask prices.

(d) 

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

(e) 

Ratios include non-recurring costs associated with a proxy statement of 0.01%.

(f) 

Amount represents less than 0.005%.

(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.

 

  64  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Consumer Staples Momentum ETF (PSL)

 

    Years Ended April 30,  
    2023     2022     2021      2020     2019  

Per Share Operating Performance:

          

Net asset value at beginning of year

  $ 84.36     $ 94.26     $ 60.84      $ 72.67     $ 67.39  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net investment income(a)

    1.68 (b)       1.21       0.73        0.46       0.45  

Net realized and unrealized gain (loss) on investments

    4.34       (9.89     33.35        (11.78     5.25  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total from investment operations

    6.02       (8.68     34.08        (11.32     5.70  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

          

Net investment income

    (1.70     (1.22     (0.66      (0.51     (0.42
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 88.68     $ 84.36     $ 94.26      $ 60.84     $ 72.67  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Market price at end of year(c)

  $ 88.68     $ 84.28     $ 94.31      $ 60.81     $ 72.65  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(d)

    7.34     (9.27 )%      56.25      (15.61 )%      8.50

Market Price Total Return(d)

    7.44     (9.41 )%      56.42      (15.63 )%      8.12

Ratios/Supplemental Data:

          

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

  $ 121,497     $ 99,540     $ 111,221      $ 109,513     $ 174,401  

Ratio to average net assets of:

          

Expenses, after Waivers

    0.60     0.60     0.60      0.60     0.60

Expenses, prior to Waivers

    0.73     0.73     0.75      0.71     0.71

Net investment income

    2.04 %(b)       1.34     0.93      0.65     0.64

Portfolio turnover rate(e)

    135     94     97      119     118

 

(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 $1.24 and 1.51%, respectively.

(c) 

The mean between the last bid and ask prices.

(d) 

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

(e) 

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.

 

  65  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Energy Momentum ETF (PXI)

 

    Years Ended April 30,  
    2023     2022      2021      2020     2019  

Per Share Operating Performance:

           

Net asset value at beginning of year

  $ 42.01     $ 24.49      $ 15.20      $ 31.95     $ 42.26  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net investment income(a)

    1.47       0.32        0.17        0.74 (b)       0.28  

Net realized and unrealized gain (loss) on investments

    (3.24     17.47        9.33        (16.70     (10.24
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total from investment operations

    (1.77     17.79        9.50        (15.96     (9.96
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

           

Net investment income

    (1.49     (0.27      (0.21      (0.79     (0.35
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 38.75     $ 42.01      $ 24.49      $ 15.20     $ 31.95  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Market price at end of year(c)

  $ 38.73     $ 42.02      $ 24.51      $ 15.24     $ 31.95  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(d)

    (4.42 )%      72.99      63.39      (50.75 )%      (23.63 )% 

Market Price Total Return(d)

    (4.50 )%      72.89      63.10      (50.62 )%      (23.74 )% 

Ratios/Supplemental Data:

           

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

  $ 95,325     $ 240,703      $ 139,581      $ 17,479     $ 51,127  

Ratio to average net assets of:

           

Expenses, after Waivers

    0.60     0.60      0.60      0.62 %(e)      0.60

Expenses, prior to Waivers

    0.70     0.70      0.85      0.86 %(e)      0.75

Net investment income

    3.37     1.00      0.86      2.98 %(b)(e)      0.72

Portfolio turnover rate(f)

    147     115      196      92     113

 

(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 $0.58 and 2.35%, respectively.

(c) 

The mean between the last bid and ask prices.

(d) 

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

(e) 

Ratios include non-recurring costs associated with a proxy statement of 0.02%.

(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.

 

  66  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Financial Momentum ETF (PFI)

 

    Years Ended April 30,  
    2023     2022     2021      2020     2019  

Per Share Operating Performance:

          

Net asset value at beginning of year

  $ 45.50     $ 51.11     $ 31.88      $ 35.52     $ 35.16  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net investment income(a)

    0.60       0.75       0.47        0.52       0.41  

Net realized and unrealized gain (loss) on investments

    (4.74     (5.61     19.34        (3.54     0.39  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total from investment operations

    (4.14     (4.86     19.81        (3.02     0.80  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

          

Net investment income

    (0.69     (0.75     (0.58      (0.62     (0.44
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 40.67     $ 45.50     $ 51.11      $ 31.88     $ 35.52  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Market price at end of year(b)

  $ 40.63     $ 45.43     $ 51.16      $ 31.86     $ 35.49  
 

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(c)

    (9.05 )%      (9.63 )%      62.64      (8.33 )%      2.44

Market Price Total Return(c)

    (9.00 )%      (9.85 )%      62.90      (8.31 )%      2.18

Ratios/Supplemental Data:

          

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

  $ 28,872     $ 84,170     $ 55,708      $ 28,695     $ 24,861  

Ratio to average net assets of:

          

Expenses, after Waivers

    0.60     0.60     0.60      0.61 %(d)      0.60

Expenses, prior to Waivers

    0.79     0.70     0.82      0.71 %(d)      0.79

Net investment income

    1.44     1.44     1.16      1.40 %(d)      1.22

Portfolio turnover rate(e)

    144     153     167      158     132

 

(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) 

Ratios include non-recurring costs associated with a proxy statement of 0.01%.

(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 DWA Healthcare Momentum ETF (PTH)

 

    Years Ended April 30,  
    2023     2022     2021     2020     2019  

Per Share Operating Performance:

         

Net asset value at beginning of year

  $ 121.59     $ 156.37     $ 98.32     $ 77.79     $ 77.65  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income (loss)(a)

    (0.03     (0.72     (0.47     (0.30     (0.33

Net realized and unrealized gain (loss) on investments

    (1.60     (34.06     58.52       20.83       0.47  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    (1.63     (34.78     58.05       20.53       0.14  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value at end of year

  $ 119.96     $ 121.59     $ 156.37     $ 98.32     $ 77.79  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market price at end of year(b)

  $ 119.92     $ 121.51     $ 156.15     $ 98.49     $ 77.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value Total Return(c)

    (1.34 )%      (22.24 )%      59.04     26.39     0.18

Market Price Total Return(c)

    (1.31 )%      (22.18 )%      58.54     26.78     (0.15 )% 

Ratios/Supplemental Data:

         

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

  $ 181,144     $ 273,584     $ 558,234     $ 265,463     $ 163,351  

Ratio to average net assets of:

         

Expenses, after Waivers

    0.60     0.60     0.60     0.60     0.60

Expenses, prior to Waivers

    0.71     0.68     0.67     0.73     0.69

Net investment income (loss)

    (0.02 )%      (0.47 )%      (0.32 )%      (0.34 )%      (0.39 )% 

Portfolio turnover rate(d)

    219     204     217     175     166

 

(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) 

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.

 

  67  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Industrials Momentum ETF (PRN)

 

    Years Ended April 30,  
    2023      2022     2021      2020     2019  

Per Share Operating Performance:

           

Net asset value at beginning of year

  $ 90.58      $ 102.57     $ 61.51      $ 63.65     $ 57.87  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net investment income(a)

    0.83        0.14       0.05        0.30       0.17  

Net realized and unrealized gain (loss) on investments

    3.91        (11.97     41.11        (2.16     5.76  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total from investment operations

    4.74        (11.83     41.16        (1.86     5.93  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

           

Net investment income

    (0.88      (0.16     (0.10      (0.28     (0.15
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 94.44      $ 90.58     $ 102.57      $ 61.51     $ 63.65  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Market price at end of year(b)

  $ 94.45      $ 90.42     $ 102.49      $ 61.72     $ 63.64  
 

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(c)

    5.32      (11.56 )%      66.98      (2.95 )%      10.28

Market Price Total Return(c)

    5.52      (11.64 )%      66.28      (2.61 )%      10.19

Ratios/Supplemental Data:

           

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

  $ 128,443      $ 173,908     $ 314,886      $ 58,431     $ 101,839  

Ratio to average net assets of:

           

Expenses, after Waivers

    0.60      0.60     0.60      0.61 %(d)      0.60

Expenses, prior to Waivers

    0.65      0.63     0.64      0.62 %(d)      0.64

Net investment income

    0.92      0.13     0.06      0.46 %(d)      0.29

Portfolio turnover rate(e)

    142      152     169      111     104

 

(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) 

Ratios include non-recurring costs associated with a proxy statement of 0.01%.

(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 DWA Technology Momentum ETF (PTF)

 

    Years Ended April 30,  
    2023     2022     2021     2020     2019  

Per Share Operating Performance:

         

Net asset value at beginning of year

  $ 118.07     $ 142.90     $ 76.63     $ 71.82     $ 56.19  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income (loss)(a)

    (0.19     (0.46     (0.46     (0.12     (0.09

Net realized and unrealized gain (loss) on investments

    2.69       (24.37     66.73       4.93       15.76  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    2.50       (24.83     66.27       4.81       15.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to shareholders from:

         

Net investment income

    -       -       -       -       (0.04
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value at end of year

  $ 120.57     $ 118.07     $ 142.90     $ 76.63     $ 71.82  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market price at end of year(b)

  $ 120.53     $ 118.10     $ 142.85     $ 76.69     $ 71.91  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value Total Return(c)

    2.13     (17.37 )%      86.48     6.70     27.90

Market Price Total Return(c)

    2.05     (17.33 )%      86.28     6.65     28.01

Ratios/Supplemental Data:

         

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

  $ 230,297     $ 205,439     $ 297,237     $ 157,096     $ 175,966  

Ratio to average net assets of:

         

Expenses, after Waivers

    0.60     0.60     0.60     0.60     0.60

Expenses, prior to Waivers

    0.71     0.69     0.69     0.69     0.72

Net investment income (loss)

    (0.16 )%      (0.31 )%      (0.37 )%      (0.17 )%      (0.15 )% 

Portfolio turnover rate(d)

    158     207     172     159     133

 

(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) 

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.

 

  68  

 

 

 

 


 

Financial Highlights–(continued)

 

Invesco DWA Utilities Momentum ETF (PUI)

 

    Years Ended April 30,  
    2023     2022      2021      2020     2019  

Per Share Operating Performance:

           

Net asset value at beginning of year

  $ 35.29     $ 34.30      $ 30.19      $ 32.18     $ 27.11  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net investment income(a)

    0.72       0.73        0.64        0.65       0.63  

Net realized and unrealized gain (loss) on investments

    (1.77     0.98        4.27        (1.87     4.98  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total from investment operations

    (1.05     1.71        4.91        (1.22     5.61  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Distributions to shareholders from:

           

Net investment income

    (0.67     (0.72      (0.80      (0.77     (0.54
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value at end of year

  $ 33.57     $ 35.29      $ 34.30      $ 30.19     $ 32.18  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Market price at end of year(b)

  $ 33.57     $ 35.27      $ 34.24      $ 30.29     $ 32.18  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net Asset Value Total Return(c)

    (3.00 )%      5.08      16.63      (3.84 )%      20.98

Market Price Total Return(c)

    (2.95 )%      5.20      16.05      (3.53 )%      20.89

Ratios/Supplemental Data:

           

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

  $ 43,309     $ 55,762      $ 49,728      $ 81,526     $ 223,637  

Ratio to average net assets of:

           

Expenses, after Waivers

    0.60     0.60      0.60      0.60     0.60

Expenses, prior to Waivers

    0.78     0.81      0.81      0.69     0.73

Net investment income

    2.09     2.12      2.06      1.93     2.08

Portfolio turnover rate(d)

    60     61      64      69     49

 

(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) 

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 NASDAQ Internet ETF (PNQI)

 

    Years Ended April 30,  
    2023     2022     2021     2020     2019  

Per Share Operating Performance:

         

Net asset value at beginning of year

  $ 139.93     $ 244.16     $ 146.82     $ 142.44     $ 129.15  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income (loss)(a)

    (0.46     (1.21     (1.15     (0.44     (0.44

Net realized and unrealized gain (loss) on investments

    1.03       (103.02     98.49       4.82       13.73  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    0.57       (104.23     97.34       4.38       13.29  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value at end of year

  $ 140.50     $ 139.93     $ 244.16     $ 146.82     $ 142.44  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market price at end of year(b)

  $ 140.52     $ 139.77     $ 244.35     $ 146.75     $ 142.41  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Asset Value Total Return(c)

    0.40     (42.68 )%      66.30     3.07     10.29

Market Price Total Return(c)

    0.54     (42.81 )%      66.50     3.05     10.15

Ratios/Supplemental Data:

         

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

  $ 528,285     $ 556,918     $ 1,069,442     $ 557,897     $ 598,232  

Ratio to average net assets of:

         

Expenses

    0.60     0.60     0.60     0.60 %(d)       0.60

Net investment income (loss)

    (0.36 )%      (0.55 )%      (0.54 )%      (0.32 )%      (0.34 )% 

Portfolio turnover rate(e)

    21     29     27     41     20

 

(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) 

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) 

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.

 

  69  

 

 

 

 


 

Notes to Financial Statements

Invesco Exchange-Traded Fund Trust

April 30, 2023

 

NOTE 1–Organization

Invesco Exchange-Traded Fund Trust (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 DWA Basic Materials Momentum ETF (PYZ)   “DWA Basic Materials Momentum ETF”
  Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)   “DWA Consumer Cyclicals Momentum ETF”
  Invesco DWA Consumer Staples Momentum ETF (PSL)   “DWA Consumer Staples Momentum ETF”
  Invesco DWA Energy Momentum ETF (PXI)   “DWA Energy Momentum ETF”
  Invesco DWA Financial Momentum ETF (PFI)   “DWA Financial Momentum ETF”
  Invesco DWA Healthcare Momentum ETF (PTH)   “DWA Healthcare Momentum ETF”
  Invesco DWA Industrials Momentum ETF (PRN)   “DWA Industrials Momentum ETF”
  Invesco DWA Technology Momentum ETF (PTF)   “DWA Technology Momentum ETF”
  Invesco DWA Utilities Momentum ETF (PUI)   “DWA Utilities Momentum ETF”
  Invesco NASDAQ Internet ETF (PNQI)   “NASDAQ Internet ETF”

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

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

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

 

   

Fund

 

Underlying Index

  DWA Basic Materials Momentum ETF   Dorsey Wright® Basic Materials Technical Leaders Index
  DWA Consumer Cyclicals Momentum ETF   Dorsey Wright® Consumer Cyclicals Technical Leaders Index
  DWA Consumer Staples Momentum ETF   Dorsey Wright® Consumer Staples Technical Leaders Index
  DWA Energy Momentum ETF   Dorsey Wright® Energy Technical Leaders Index
  DWA Financial Momentum ETF   Dorsey Wright® Financials Technical Leaders Index
  DWA Healthcare Momentum ETF   Dorsey Wright® Healthcare Technical Leaders Index
  DWA Industrials Momentum ETF   Dorsey Wright® Industrials Technical Leaders Index
  DWA Technology Momentum ETF   Dorsey Wright® Technology Technical Leaders Index
  DWA Utilities Momentum ETF   Dorsey Wright® Utilities Technical Leaders Index
  NASDAQ Internet ETF   NASDAQ CTA Internet IndexSM

NOTE 2–Significant Accounting Policies

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

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

A.

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

A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. U.S. exchange-traded options are valued at the mean

 

  70  

 

 

 

 


 

 

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

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

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

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

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

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

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

The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a

 

  71  

 

 

 

 


 

 

methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.

B.

Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

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

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

 

C.

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

D.

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

E.

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

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

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

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

 

F.

Expenses - Each Fund (except for NASDAQ Internet ETF) is responsible for all of its expenses, including, but not limited to, the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, acquired fund fees and expenses, if any, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust or the Adviser (the “Independent Trustees”), expenses incurred in connection with the Board members’ services,

 

  72  

 

 

 

 


 

 

including travel expenses and legal fees of counsel for the Independent Trustees, and 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 the Adviser (an “Interested Trustee”), or (iii) any other matters that directly benefit the Adviser).

NASDAQ Internet ETF 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 Fund, 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 an Interested Trustee, or (iii) any other matters that directly benefit the Adviser).

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

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

 

G.

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

H.

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

I.

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

Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a securities lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the fiscal year ended April 30, 2023, each Fund had affiliated securities lending transactions with Invesco. Fees paid

 

  73  

 

 

 

 


 

 

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  
 

DWA Basic Materials Momentum ETF

  $ 15,897  
 

DWA Consumer Cyclicals Momentum ETF

    3,823  
 

DWA Consumer Staples Momentum ETF

    1,474  
 

DWA Energy Momentum ETF

    26,650  
 

DWA Financial Momentum ETF

    702  
 

DWA Healthcare Momentum ETF

    47,376  
 

DWA Industrials Momentum ETF

    1,370  
 

DWA Technology Momentum ETF

    7,091  
 

DWA Utilities Momentum ETF

    520  
 

NASDAQ Internet ETF

    8,332  

 

J.

Other Risks

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

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

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

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

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

 

  74  

 

 

 

 


 

 

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

Momentum Investing Risk. For certain Funds, the momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that previously have exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously have exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of a Fund may suffer.

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

Portfolio Turnover Risk. Certain Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gains distributions to a Fund’s shareholders, a Fund will seek to utilize the in-kind creation and redemption mechanism to minimize the realization of capital gains to the extent possible.

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.

NOTE 3–Investment Advisory Agreements and Other Agreements

The Trust has entered into Investment Advisory Agreements with the Adviser on behalf of the Funds, 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 an Investment Advisory Agreement, each Fund (except for NASDAQ Internet ETF) accrues daily and pays monthly to the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

Pursuant to another Investment Advisory Agreement, NASDAQ Internet ETF accrues daily and pays monthly to the Adviser, as compensation for its services, an annual unitary management fee of 0.60% of the Fund’s average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of NASDAQ Internet ETF, 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except NASDAQ Internet ETF), pursuant to which the Adviser has contractually agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and 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)) of each Fund (except NASDAQ Internet ETF) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2025. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2025. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

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

 

  75  

 

 

 

 


 

 

For the fiscal year ended April 30, 2023, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

 

DWA Basic Materials Momentum ETF

  $ 191,976  
 

DWA Consumer Cyclicals Momentum ETF

    108,420  
 

DWA Consumer Staples Momentum ETF

    160,741  
 

DWA Energy Momentum ETF

    218,641  
 

DWA Financial Momentum ETF

    103,486  
 

DWA Healthcare Momentum ETF

    257,421  
 

DWA Industrials Momentum ETF

    61,210  
 

DWA Technology Momentum ETF

    232,680  
 

DWA Utilities Momentum ETF

    110,649  
 

NASDAQ Internet ETF

    94  

The fees waived and/or expenses borne by the Adviser, pursuant to the Expense Cap, are subject to recapture by the Adviser up to three years from the date the fees were waived or the expenses were incurred, but no recapture payment will be made by the Funds if it would result in the Funds exceeding (i) the Expense Cap or (ii) the expense cap in effect at the time the fees and/or expenses subject to recapture were waived and/or borne by the Adviser.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2023 are as follows:

 

    Total
Potential
Recapture
   Potential Recapture Amounts Expiring
    Amounts    4/30/24    4/30/25    4/30/26

DWA Basic Materials Momentum ETF

    $ 479,817      $ 120,236      $ 167,780      $ 191,801

DWA Consumer Cyclicals Momentum ETF

      354,215        113,510        132,414        108,291

DWA Consumer Staples Momentum ETF

      463,069        163,949        138,574        160,546

DWA Energy Momentum ETF

      491,701        117,061        156,302        218,338

DWA Financial Momentum ETF

      268,311        75,623        89,336        103,352

DWA Healthcare Momentum ETF

      1,045,486        426,000        362,462        257,024

DWA Industrials Momentum ETF

      202,769        60,753        82,905        59,111

DWA Technology Momentum ETF

      747,210        255,670        259,127        232,413

DWA Utilities Momentum ETF

      341,170        131,512        99,123        110,535

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 the following entities (each, a “Licensor”):

 

   

Fund

 

Licensor

 

DWA Basic Materials Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Consumer Cyclicals Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Consumer Staples Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Energy Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Financial Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Healthcare Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Industrials Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Technology Momentum ETF

  Dorsey Wright & Associates, LLC
 

DWA Utilities Momentum ETF

  Dorsey Wright & Associates, LLC
 

NASDAQ Internet ETF

  Nasdaq, Inc.

Each Underlying Index name trademark is owned by its respective 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 (except for NASDAQ Internet ETF) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make 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.

 

  76  

 

 

 

 


 

 

For the fiscal year ended April 30, 2023, the following Funds incurred brokerage commissions with Invesco Capital Markets, Inc. (“ICMI”), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:

 

 

DWA Basic Materials Momentum ETF

   $ 38,130  
 

DWA Consumer Cyclicals Momentum ETF

     10,568  
 

DWA Consumer Staples Momentum ETF

     26,650  
 

DWA Energy Momentum ETF

     106,362  
 

DWA Financial Momentum ETF

     27,502  
 

DWA Healthcare Momentum ETF

     127,436  
 

DWA Industrials Momentum ETF

     32,191  
 

DWA Technology Momentum ETF

     56,305  
 

DWA Utilities Momentum ETF

     7,232  
 

NASDAQ Internet ETF

     10,135  

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–Security Transactions with Affiliated Funds

Each Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by each Invesco ETF from or to another fund that is or could be considered an “affiliated person” by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s “current market price”, as provided for in these procedures and Rule 17a-7.

For the fiscal year ended April 30, 2023, the following Funds engaged in transactions with affiliates as listed below:

 

    Securities Purchases   Securities Sales   Net Realized Gains (Losses)*

DWA Healthcare Momentum ETF

    $ -     $ 2,105,296     $ (52,701 )

DWA Technology Momentum ETF

      -       555,842       (26,143 )

DWA Utilities Momentum ETF

      -       310,678       (65,175 )

* Net realized gains (losses) from securities sold to affiliates are included in net realized gain (loss) from investment securities in the Statements of Operations.

NOTE 5–Additional Valuation Information

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

  Level 1 –

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

 

  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 April 30, 2023. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent

 

  77  

 

 

 

 


 

 

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

 

        Level 1    Level 2    Level 3    Total
 

DWA Basic Materials Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 156,548,440      $ -      $ -        $ 156,548,440
 

Money Market Funds

      180,435          20,836,295        -        21,016,730  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 156,728,875      $ 20,836,295      $ -        $ 177,565,170
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Consumer Cyclicals Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 22,746,867      $ -      $ -        $ 22,746,867
 

Money Market Funds

      144,833          7,120,650        -        7,265,483  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 22,891,700      $ 7,120,650      $ -        $ 30,012,350
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Consumer Staples Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 121,496,364      $ -      $ -        $ 121,496,364
 

Money Market Funds

      146,579          14,072,657        -        14,219,236  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 121,642,943      $ 14,072,657      $ -        $ 135,715,600
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Energy Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 95,309,121      $ -      $ -        $ 95,309,121
 

Money Market Funds

      221,047          20,732,151        -        20,953,198  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 95,530,168      $ 20,732,151      $ -        $ 116,262,319
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Financial Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 28,848,872      $ -      $ -        $ 28,848,872
 

Money Market Funds

      135,073          3,868,922        -        4,003,995  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 28,983,945      $ 3,868,922      $ -        $ 32,852,867
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Healthcare Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 181,179,359      $ -      $ -        $ 181,179,359
 

Money Market Funds

      272,087          42,677,158        -        42,949,245  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 181,451,446      $ 42,677,158      $ -        $ 224,128,604
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Industrials Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 128,460,442      $ -      $ -        $ 128,460,442
 

Money Market Funds

      166,062          13,318,751        -        13,484,813  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 128,626,504      $ 13,318,751      $ -        $ 141,945,255
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Technology Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 230,272,947      $ -      $ -        $ 230,272,947
 

Money Market Funds

      292,096          52,198,869        -        52,490,965  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 230,565,043      $ 52,198,869      $ -        $ 282,763,912
     

 

 

      

 

 

      

 

 

      

 

 

 
 

DWA Utilities Momentum ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 43,260,934      $ -      $ -        $ 43,260,934
 

Money Market Funds

      116,870          9,517,778        -        9,634,648  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 43,377,804      $ 9,517,778      $ -        $ 52,895,582
     

 

 

      

 

 

      

 

 

      

 

 

 
 

NASDAQ Internet ETF

                  
 

Investments in Securities

                  
 

Common Stocks & Other Equity Interests

    $ 528,508,223      $ -      $ -        $ 528,508,223
 

Money Market Funds

      -          30,815,188        -        30,815,188  
     

 

 

      

 

 

      

 

 

      

 

 

 
 

Total Investments

    $ 528,508,223      $ 30,815,188      $ -        $ 559,323,411
     

 

 

      

 

 

      

 

 

      

 

 

 

 

  78  

 

 

 

 


 

 

NOTE 6–Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2023 and 2022:

 

    2023    2022
    Ordinary
Income*
   Ordinary
Income*

DWA Basic Materials Momentum ETF

      $1,743,728        $ 713,538

DWA Consumer Cyclicals Momentum ETF

      181,785          274,022

DWA Consumer Staples Momentum ETF

      2,475,873          1,442,905

DWA Energy Momentum ETF

      7,195,508          1,335,094

DWA Financial Momentum ETF

      816,131          1,320,002

DWA Healthcare Momentum ETF

      -          -

DWA Industrials Momentum ETF

      1,148,969          391,888

DWA Technology Momentum ETF

      -          -

DWA Utilities Momentum ETF

      1,259,429          978,385

NASDAQ Internet ETF

      -          -

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

Tax Components of Net Assets at Fiscal Year-End:

 

    Undistributed
Ordinary
Income
   Temporary
Book/Tax
Differences
   Net
Unrealized
Appreciation
(Depreciation)-
Investments
   Capital Loss
Carryforwards
   Late-Year
Ordinary
Loss
Deferral
   Shares of
Beneficial
Interest
   Total
Net Assets

DWA Basic Materials Momentum ETF

    $ -      $ (51,185 )      $ 11,140,337      $ (97,900,926 )      $ -      $ 243,348,232      $ 156,536,458

DWA Consumer Cyclicals Momentum ETF

      14,403        (47,901 )        1,819,915        (85,754,541 )        -        106,733,148        22,765,024

DWA Consumer Staples Momentum ETF

      286,761        (52,245 )        13,007,061        (118,519,715 )        -        226,775,597        121,497,459

DWA Energy Momentum ETF

      120,488        (56,998 )        1,468,570        (203,908,009 )        -        297,701,307        95,325,358

DWA Financial Momentum ETF

      -        (45,711 )        1,221,143        (47,295,958 )        -        74,992,941        28,872,415

DWA Healthcare Momentum ETF

      -        (58,732 )        23,360,502        (340,863,021 )        (95,540 )        498,800,647        181,143,856

DWA Industrials Momentum ETF

      -        (52,411 )        12,206,127        (117,970,347 )        -        234,260,072        128,443,441

DWA Technology Momentum ETF

      -        (52,239 )        16,878,104        (202,085,597 )        (196,062 )        415,752,661        230,296,867

DWA Utilities Momentum ETF

      40,685        (48,464 )        (1,955,291 )        (30,896,141 )        -        76,168,709        43,309,498

NASDAQ Internet ETF

      -        -        (86,539,243 )        (168,527,264 )        (652,758 )        784,003,841        528,284,576

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.

The Funds have capital loss carryforwards as of April 30, 2023, as follows:

 

    No expiration         
    Short-Term      Long-Term      Total*  

DWA Basic Materials Momentum ETF

  $ 83,216,134      $ 14,684,792      $ 97,900,926  

DWA Consumer Cyclicals Momentum ETF

    85,754,541        -        85,754,541  

DWA Consumer Staples Momentum ETF

    112,134,416        6,385,299        118,519,715  

DWA Energy Momentum ETF

    172,778,440        31,129,569        203,908,009  

DWA Financial Momentum ETF

    47,295,958        -        47,295,958  

DWA Healthcare Momentum ETF

    340,863,021        -        340,863,021  

DWA Industrials Momentum ETF

    116,655,076        1,315,271        117,970,347  

DWA Technology Momentum ETF

    199,340,306        2,745,291        202,085,597  

DWA Utilities Momentum ETF

    27,003,697        3,892,444        30,896,141  

NASDAQ Internet ETF

    81,059,554        87,467,710        168,527,264  

 

*

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.

 

  79  

 

 

 

 


 

 

NOTE 7–Investment Transactions

For the fiscal year ended April 30, 2023, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:

 

    Purchases      Sales  

DWA Basic Materials Momentum ETF

  $ 125,914,974      $ 125,724,102  

DWA Consumer Cyclicals Momentum ETF

    51,083,587        51,123,508  

DWA Consumer Staples Momentum ETF

    167,939,944        167,533,407  

DWA Energy Momentum ETF

    306,536,843        307,546,248  

DWA Financial Momentum ETF

    78,560,629        78,411,997  

DWA Healthcare Momentum ETF

    498,236,296        498,225,992  

DWA Industrials Momentum ETF

    176,110,021        187,978,438  

DWA Technology Momentum ETF

    347,040,848        333,308,850  

DWA Utilities Momentum ETF

    36,442,747        36,266,669  

NASDAQ Internet ETF

    101,148,400        102,598,743  

For the fiscal year ended April 30, 2023, in-kind transactions associated with creations and redemptions were as follows:

 

    In-kind
Purchases
   In-kind
Sales

DWA Basic Materials Momentum ETF

    $ 58,827,335      $ 61,419,857

DWA Consumer Cyclicals Momentum ETF

      -        14,467,510

DWA Consumer Staples Momentum ETF

      98,191,841        83,061,646

DWA Energy Momentum ETF

      76,908,286        209,698,643

DWA Financial Momentum ETF

      23,126,771        71,977,553

DWA Healthcare Momentum ETF

      4,966,232        92,185,679

DWA Industrials Momentum ETF

      24,186,435        63,182,451

DWA Technology Momentum ETF

      98,730,248        93,254,387

DWA Utilities Momentum ETF

      45,928,919        52,259,751

NASDAQ Internet ETF

      106,821,228        135,573,029

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes. As of April 30, 2023, the aggregate cost of investments, including any derivatives, on a tax basis includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:

 

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

DWA Basic Materials Momentum ETF

    $ 15,935,151      $ (4,794,814 )      $ 11,140,337      $ 166,424,833

DWA Consumer Cyclicals Momentum ETF

      2,014,696        (194,781 )        1,819,915        28,192,435

DWA Consumer Staples Momentum ETF

      14,971,759        (1,964,698 )        13,007,061        122,708,539

DWA Energy Momentum ETF

      6,868,499        (5,399,929 )        1,468,570        114,793,749

DWA Financial Momentum ETF

      1,788,034        (566,891 )        1,221,143        31,631,724

DWA Healthcare Momentum ETF

      27,032,149        (3,671,647 )        23,360,502        200,768,102

DWA Industrials Momentum ETF

      14,617,018        (2,410,891 )        12,206,127        129,739,128

DWA Technology Momentum ETF

      26,218,904        (9,340,800 )        16,878,104        265,885,808

DWA Utilities Momentum ETF

      759,947        (2,715,238 )        (1,955,291 )        54,850,873

NASDAQ Internet ETF

      56,104,699        (142,643,942 )        (86,539,243 )        645,862,654

 

  80  

 

 

 

 


 

 

NOTE 8–Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and net operating losses, 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 April 30, 2023, the reclassifications were as follows:

 

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

DWA Basic Materials Momentum ETF

    $ 16,123      $ (1,825,475 )      $ 1,809,352

DWA Consumer Cyclicals Momentum ETF

      -        677,903        (677,903 )

DWA Consumer Staples Momentum ETF

      -        (10,330,786 )        10,330,786

DWA Energy Momentum ETF

      -        (36,906,173 )        36,906,173

DWA Financial Momentum ETF

      39,834        1,735,794        (1,775,628 )

DWA Healthcare Momentum ETF

      325,905        (2,759,158 )        2,433,253

DWA Industrials Momentum ETF

      37,366        (613,110 )        575,744

DWA Technology Momentum ETF

      480,492        (13,406,865 )        12,926,373

DWA Utilities Momentum ETF

      -        (3,699,603 )        3,699,603

NASDAQ Internet ETF

      2,334,891        (12,195,417 )        9,860,526

NOTE 9–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 the unitary management fee, pays for such compensation for NASDAQ Internet ETF. The Interested Trustee 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 10–Capital

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

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

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

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

 

  81  

 

 

 

 


 

 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Invesco Exchange-Traded Fund Trust and Shareholders of Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer Cyclicals Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA Energy Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Technology Momentum ETF, Invesco DWA Utilities Momentum ETF and Invesco NASDAQ Internet ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer Cyclicals Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA Energy Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Technology Momentum ETF, Invesco DWA Utilities Momentum ETF and Invesco NASDAQ Internet ETF (ten of the funds constituting Invesco Exchange-Traded Fund Trust, hereafter collectively referred to as the “Funds”) as of April 30, 2023, the related statements of operations for the year ended April 30, 2023, the statements of changes in net assets for each of the two years in the period ended April 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2023 (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 April 30, 2023, 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 April 30, 2023, and each of the financial highlights for each of the five years in the period ended April 30, 2023 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 April 30, 2023 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

June 26, 2023

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 determined the specific year we began serving as auditor.

 

  82  

 

 

 

 


 

 

Calculating your ongoing Fund expenses

Example

As a shareholder of a Fund of the Invesco Exchange-Traded Fund Trust (excluding Invesco NASDAQ Internet ETF), you incur advisory fees and other Fund expenses. As a shareholder of the Invesco NASDAQ Internet ETF, you incur a unitary management fee. In addition to the advisory fee or 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 an Interested Trustee, 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 November 1, 2022 through April 30, 2023.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

 

              Annualized     
    Beginning    Ending    Expense Ratio    Expenses Paid
    Account Value    Account Value    Based on the    During the
    November 1, 2022    April 30, 2023    Six-Month Period    Six-Month Period(1)

Invesco DWA Basic Materials Momentum ETF (PYZ)

                  

Actual

    $ 1,000.00      $ 1,034.50        0.60 %      $ 3.03

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Consumer Cyclicals Momentum ETF (PEZ)

                  

Actual

      1,000.00        1,059.00        0.60        3.06

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Consumer Staples Momentum ETF (PSL)

                  

Actual

      1,000.00        1,097.00        0.60        3.12

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Energy Momentum ETF (PXI)

                  

Actual

      1,000.00        821.70        0.60        2.71

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Financial Momentum ETF (PFI)

                  

Actual

      1,000.00        958.00        0.60        2.91

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

 

  83  

 

 

 

 


 

 

Calculating your ongoing Fund expenses–(continued)

 

              Annualized     
    Beginning    Ending    Expense Ratio    Expenses Paid
    Account Value    Account Value    Based on the    During the
    November 1, 2022    April 30, 2023    Six-Month Period    Six-Month Period(1)

Invesco DWA Healthcare Momentum ETF (PTH)

                  

Actual

    $ 1,000.00      $ 951.60        0.60 %      $ 2.90

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Industrials Momentum ETF (PRN)

                  

Actual

      1,000.00        1,063.60        0.60        3.07

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Technology Momentum ETF (PTF)

                  

Actual

      1,000.00        1,046.60        0.60        3.04

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco DWA Utilities Momentum ETF (PUI)

                  

Actual

      1,000.00        1,006.50        0.60        2.99

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

Invesco NASDAQ Internet ETF (PNQI)

                  

Actual

      1,000.00        1,230.20        0.60        3.32

Hypothetical (5% return before expenses)

      1,000.00        1,021.82        0.60        3.01

 

(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 April 30, 2023. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

 

  84  

 

 

 

 


 

 

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 April 30, 2023:

 

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

Invesco DWA Basic Materials Momentum ETF

      0 %        100 %        100 %        0 %        0 %        0 %

Invesco DWA Consumer Cyclicals Momentum ETF

      0 %        100 %        100 %        0 %        0 %        1 %

Invesco DWA Consumer Staples Momentum ETF

      0 %        98 %        98 %        0 %        0 %        0 %

Invesco DWA Energy Momentum ETF

      0 %        100 %        100 %        0 %        0 %        0 %

Invesco DWA Financial Momentum ETF

      11 %        89 %        87 %        0 %        0 %        0 %

Invesco DWA Healthcare Momentum ETF

      0 %        0 %        0 %        0 %        0 %        0 %

Invesco DWA Industrials Momentum ETF

      0 %        100 %        100 %        0 %        0 %        0 %

Invesco DWA Technology Momentum ETF

      0 %        0 %        0 %        0 %        0 %        0 %

Invesco DWA Utilities Momentum ETF

      0 %        100 %        100 %        0 %        0 %        0 %

Invesco NASDAQ Internet ETF

      0 %        0 %        0 %        0 %        0 %        0 %

 

*

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

 

  85  

 

 

 

 


 

 

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 April 30, 2023

 

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 2003   Founder and Principal, YQA Capital Management LLC (1998-Present); formerly, Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider).   216   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   Formerly, Assistant Professor of Business, Trinity Christian College (2010-2016); 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.   216   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.

 

  86  

 

 

 

 


 

 

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 Chairman of the Joint Chiefs of Staff (2005-2007); first NATO Supreme Allied Commander Transformation (2003-2005); Commander, U.S. Joint Forces Command (2002-2005).   216   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.

 

  87  

 

 

 

 


 

 

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).   216   Trustee Emerita (2017-Present), Trustee (2000-2017) and Chair (2010-2017), Newberry Library; Trustee, Chikaming Open Lands (2014-Present); Member (2002- Present), Rockefeller Trust Committee; 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.

 

  88  

 

 

 

 


 

 

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 2006   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).   216   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).   216   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.

 

  89  

 

 

 

 


 

 

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.   216   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.

 

  90  

 

 

 

 


 

 

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.   216   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 2006   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).   216   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.

 

  91  

 

 

 

 


 

 

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 (as defined below) overseen by the Interested Trustee and the other directorships, if any, held by the Interested Trustee are shown below:

 

*

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.

 

  92  

 

 

 

 


 

 

Trustees and Officers–(continued)

 

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); formerly, Vice President, Invesco Indexing LLC (2020-2022); 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).   216   None

 

*

These are the dates the Interested Trustee began serving the Trust in her current positions. The Interested Trustee serves an indefinite term, until 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.

 

  93  

 

 

 

 


 

 

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

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

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 (2020-Present) and Secretary (2022-Present), Invesco Indexing LLC; 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.

 

  94  

 

 

 

 


 

 

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

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.

 

  95  

 

 

 

 


 

 

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.

 

  96  

 

 

 

 


 

 

Approval of Investment Advisory Contracts

At a meeting held on April 18, 2023, the Board of Trustees of the Invesco Exchange-Traded Fund Trust (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 series (each, a “Fund” and collectively, the “Funds”):

 

Invesco Dow Jones Industrial Average Dividend ETF    Invesco S&P 500® Equal Weight Materials ETF
Invesco NASDAQ Internet ETF    Invesco S&P 500® Equal Weight Real Estate ETF
Invesco Raymond James SB-1 Equity ETF    Invesco S&P 500® Equal Weight Technology ETF
Invesco S&P 500 BuyWrite ETF    Invesco S&P 500® Equal Weight Utilities ETF
Invesco S&P 500® Equal Weight Communication Services  ETF    Invesco S&P 500® Pure Growth ETF
Invesco S&P 500® Equal Weight Consumer Discretionary ETF    Invesco S&P 500® Pure Value ETF
Invesco S&P 500® Equal Weight Consumer Staples ETF    Invesco S&P 500® Top 50 ETF
Invesco S&P 500® Equal Weight Energy ETF    Invesco S&P MidCap 400® Equal Weight ETF
Invesco S&P 500® Equal Weight ETF    Invesco S&P MidCap 400® Pure Growth ETF
Invesco S&P 500® Equal Weight Financials ETF    Invesco S&P MidCap 400® Pure Value ETF
Invesco S&P 500® Equal Weight Health Care ETF    Invesco S&P SmallCap 600® Pure Growth ETF
Invesco S&P 500® Equal Weight Industrials ETF    Invesco S&P SmallCap 600® Pure Value ETF

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 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 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, 2022, 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 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 purchase by Invesco of the exchange-traded funds (“ETFs”) business of Guggenheim Capital LLC (“Guggenheim”) (the “Transaction”) and that each such Fund’s performance prior to the closing of the Transaction on April 6, 2018 or May 18, 2018 is that of its predecessor Guggenheim ETF. The Trustees noted that, for each applicable period, the correlation and tracking error for each Fund were within the targeted range set forth in the Trust’s registration statement. The Board concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was 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. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on its review, the Board 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, except that each Fund pays its brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses, costs incurred in connection with proxies (except certain proxies) and other extraordinary expenses:

 

  97  

 

 

 

 


 

 

Approval of Investment Advisory Contracts–(continued)

 

   

0.07% of the Fund’s average daily net assets for Invesco Dow Jones Industrial Average Dividend ETF;

 

   

0.20% of the Fund’s average daily net assets for each of Invesco S&P 500® Equal Weight ETF and Invesco S&P 500® Top 50 ETF;

 

   

0.35% of the Fund’s average daily net assets for each of Invesco S&P 500® Pure Growth ETF, Invesco S&P 500® Pure Value ETF, Invesco S&P MidCap 400® Pure Growth ETF, Invesco S&P MidCap 400® Pure Value ETF, Invesco S&P SmallCap 600® Pure Growth ETF and Invesco S&P SmallCap 600® Pure Value ETF;

 

   

0.49% of the Fund’s average daily net assets for Invesco S&P 500 BuyWrite ETF;

 

   

0.60% of the Fund’s average daily net assets for Invesco NASDAQ Internet ETF;

 

   

0.75% of the Fund’s average daily net assets for Invesco Raymond James SB-1 Equity ETF; and

 

   

0.40% of the Fund’s average daily net assets for each other Fund.

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 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 Dow Jones Industrial Average Dividend ETF

  X    X    X

Invesco NASDAQ Internet ETF

        X

Invesco Raymond James SB-1 Equity ETF

        X

Invesco S&P 500 BuyWrite ETF

  X    N/A    X

Invesco S&P 500® Equal Weight Communication Services ETF

        X

Invesco S&P 500® Equal Weight Consumer Discretionary ETF

  X       X

Invesco S&P 500® Equal Weight Consumer Staples ETF

  X       X

Invesco S&P 500® Equal Weight Energy ETF

        X

Invesco S&P 500® Equal Weight ETF

  X    X    X

Invesco S&P 500® Equal Weight Financials ETF

        X

Invesco S&P 500® Equal Weight Health Care ETF

        X

Invesco S&P 500® Equal Weight Industrials ETF

  X       X

Invesco S&P 500® Equal Weight Materials ETF

  X       X

Invesco S&P 500® Equal Weight Real Estate ETF

        X

Invesco S&P 500® Equal Weight Technology ETF

  X       X

Invesco S&P 500® Equal Weight Utilities ETF

     X    X

Invesco S&P 500® Pure Growth ETF

  X    X    X

Invesco S&P 500® Pure Value ETF

        X

Invesco S&P 500® Top 50 ETF

        X

Invesco S&P MidCap 400® Equal Weight ETF

        X

Invesco S&P MidCap 400® Pure Growth ETF

        X

Invesco S&P MidCap 400® Pure Value ETF

     X    X

Invesco S&P SmallCap 600® Pure Growth ETF

        X

Invesco S&P SmallCap 600® Pure Value ETF

     X    X

In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding Invesco Raymond James SB-1 Equity ETF’s advisory fee and total expenses and the Lipper peer data. The Adviser explained its view that

 

  98  

 

 

 

 


 

 

Approval of Investment Advisory Contracts–(continued)

the advisory fee and total expenses for the Fund 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 that of Invesco S&P 500® Equal Weight ETF. 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.

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 index, the distinguishing factors of the Fund, 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 regarding its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. With respect to the Adviser’s profitability information, the Trustees considered that there is no recognized standard or uniform methodology for determining profitability for this purpose. Furthermore, the Trustees noted that there are limitations inherent in allocating costs and calculating profitability for an organization such as the Adviser’s. Based on the information provided, the Board 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 the Fund’s 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 also noted that the Adviser has reduced advisory fees for the Invesco ETFs numerous times since 2011, including through permanent advisory fee reductions and various advisory fee waivers. The Board 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 rates were 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 is not a party to any soft-dollar, commission recapture or directed brokerage arrangements with respect to the Funds. 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 from affiliated money market cash management vehicles and fees as the Funds’ 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.

 

  99  

 

 

 

 


 

 

Approval of Investment Advisory Contracts

At a meeting held on April 18, 2023, the Board of Trustees of the Invesco Exchange-Traded Fund Trust (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 series (each, a “Fund” and collectively, the “Funds”):

 

Invesco Aerospace & Defense ETF    Invesco Dynamic Semiconductors ETF
Invesco BuyBack AchieversTM ETF    Invesco Dynamic Software ETF
Invesco Dividend AchieversTM ETF    Invesco Financial Preferred ETF
Invesco DWA Basic Materials Momentum ETF    Invesco FTSE RAFI US 1000 ETF
Invesco DWA Consumer Cyclicals Momentum ETF    Invesco FTSE RAFI US 1500 Small-Mid ETF
Invesco DWA Consumer Staples Momentum ETF    Invesco Global Listed Private Equity ETF
Invesco DWA Energy Momentum ETF    Invesco Golden Dragon China ETF
Invesco DWA Financial Momentum ETF    Invesco High Yield Equity Dividend AchieversTM ETF
Invesco DWA Healthcare Momentum ETF    Invesco International Dividend AchieversTM ETF
Invesco DWA Industrials Momentum ETF    Invesco MSCI Sustainable Future ETF
Invesco DWA Momentum ETF    Invesco S&P 100 Equal Weight ETF
Invesco DWA Technology Momentum ETF    Invesco S&P 500 GARP ETF
Invesco DWA Utilities Momentum ETF    Invesco S&P 500® Quality ETF
Invesco Dynamic Biotechnology & Genome ETF    Invesco S&P 500 Value with Momentum ETF
Invesco Dynamic Building & Construction ETF    Invesco S&P MidCap Momentum ETF
Invesco Dynamic Energy Exploration & Production ETF    Invesco S&P MidCap Quality ETF
Invesco Dynamic Food & Beverage ETF    Invesco S&P MidCap Value with Momentum ETF
Invesco Dynamic Large Cap Growth ETF    Invesco S&P SmallCap Momentum ETF
Invesco Dynamic Large Cap Value ETF    Invesco S&P SmallCap Value with Momentum ETF
Invesco Dynamic Leisure and Entertainment ETF    Invesco S&P Spin-Off ETF
Invesco Dynamic Market ETF    Invesco Water Resources ETF
Invesco Dynamic Media ETF    Invesco WilderHill Clean Energy ETF
Invesco Dynamic Networking ETF    Invesco Zacks Mid-Cap ETF
Invesco Dynamic Oil & Gas Services ETF    Invesco Zacks Multi-Asset Income ETF
Invesco Dynamic Pharmaceuticals ETF   

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 and expenses paid by the Funds and comparisons to amounts paid by other 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 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, 2022, 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 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 purchase by Invesco of the exchange-traded funds (“ETFs”) business of Guggenheim Capital LLC (“Guggenheim”) (the “Transaction”) and that each such Fund’s performance prior to the closing of the Transaction on April 6, 2018 or May 18, 2018, as applicable, is that of its predecessor Guggenheim ETF. The Trustees noted that, for each applicable period, the correlation and tracking error for each Fund were within the targeted range set forth in the Trust’s registration

 

  100  

 

 

 

 


 

 

Approval of Investment Advisory Contracts–(continued)

statement. The Board concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was 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. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on its review, the Board 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 contractual advisory fee, net advisory fee and gross and net expense ratios. The Trustees noted that the annual contractual advisory fee charged to each Fund is as follows:

 

   

0.15% of the Fund’s average daily net assets for Invesco S&P 500® Quality ETF;

 

   

0.25% of the Fund’s average daily net assets for each of Invesco S&P 100 Equal Weight ETF and Invesco S&P MidCap Quality ETF; and

 

   

0.29% of the Fund’s average daily net assets for each of Invesco FTSE RAFI US 1000 ETF, Invesco FTSE RAFI US 1500 Small-Mid ETF, Invesco S&P 500 GARP ETF, Invesco S&P 500 Value with Momentum ETF, Invesco S&P MidCap Momentum ETF, Invesco S&P MidCap Value with Momentum ETF, Invesco S&P SmallCap Momentum ETF and Invesco S&P SmallCap Value with Momentum ETF;

 

   

0.40% of the Fund’s average daily net assets for each of Invesco Dividend Achievers ETF, Invesco High Yield Equity Dividend Achievers ETF and Invesco International Dividend Achievers ETF; and

 

   

0.50% of the Fund’s average daily net assets for each other Fund.

The Trustees noted that the Adviser has agreed to waive a portion of its contractual advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2025, as set forth below:

 

   

0.15%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco S&P 500® Quality ETF;

 

   

0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco S&P 100 Equal Weight ETF and Invesco S&P MidCap Quality ETF;

 

   

0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco FTSE RAFI US 1000 ETF, Invesco FTSE RAFI US 1500 Small-Mid ETF, Invesco S&P 500 GARP ETF, Invesco S&P 500 Value with Momentum ETF, Invesco S&P MidCap Momentum ETF, Invesco S&P MidCap Value with Momentum ETF, Invesco S&P SmallCap Momentum ETF and Invesco S&P SmallCap Value with Momentum ETF;

 

   

0.50%, excluding interest expenses, sub-licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco Dividend AchieversTM ETF, Invesco High Yield Equity Dividend AchieversTM ETF and Invesco International Dividend AchieversTM ETF;

 

   

0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco DWA Basic Materials Momentum ETF, Invesco DWA Consumer Cyclicals Momentum ETF, Invesco DWA Consumer Staples Momentum ETF, Invesco DWA Energy Momentum ETF, Invesco DWA Financial Momentum ETF, Invesco DWA Healthcare Momentum ETF, Invesco DWA Industrials Momentum ETF, Invesco DWA Technology Momentum ETF and Invesco DWA Utilities Momentum ETF;

 

   

0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco Dynamic Market ETF; and

 

   

0.60%, excluding interest expenses, sub-licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for Invesco Aerospace & Defense ETF, Invesco BuyBack AchieversTM ETF, Invesco DWA Momentum ETF, Invesco Dynamic Biotechnology & Genome ETF, Invesco Dynamic Building & Construction ETF, Invesco Dynamic Energy Exploration & Production ETF, Invesco Dynamic Food & Beverage ETF, Invesco Dynamic Large Cap Growth ETF, Invesco Dynamic Large Cap Value ETF, Invesco Dynamic Leisure and Entertainment ETF,

 

  101  

 

 

 

 


 

 

Approval of Investment Advisory Contracts–(continued)

Invesco Dynamic Media ETF, Invesco Dynamic Networking ETF, Invesco Dynamic Oil & Gas Services ETF, Invesco Dynamic Pharmaceuticals ETF, Invesco Dynamic Semiconductors ETF, Invesco Dynamic Software ETF, Invesco Financial Preferred ETF, Invesco Global Listed Private Equity ETF, Invesco Golden Dragon China ETF, Invesco MSCI Sustainable Future ETF, Invesco S&P Spin-Off ETF, Invesco Water Resources ETF, Invesco WilderHill Clean Energy ETF, Invesco Zacks Mid-Cap ETF and Invesco Zacks Multi-Asset Income ETF.

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

 

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 Aerospace & Defense ETF

        X

Invesco Buyback AchieversTM ETF

        X

Invesco Dividend AchieversTM ETF

        X

Invesco DWA Basic Materials Momentum ETF

  X       X

Invesco DWA Consumer Cyclicals Momentum ETF

  X       X

Invesco DWA Consumer Staples Momentum ETF

        X

Invesco DWA Energy Momentum ETF

        X

Invesco DWA Financial Momentum ETF

        X

Invesco DWA Healthcare Momentum ETF

        X

Invesco DWA Industrials Momentum ETF

        X

Invesco DWA Momentum ETF

        X

Invesco DWA Technology Momentum ETF

        X

Invesco DWA Utilities Momentum ETF

        X

Invesco Dynamic Biotechnology & Genome ETF

        X

Invesco Dynamic Building & Construction ETF

        X

Invesco Dynamic Energy Exploration & Production ETF

        X

Invesco Dynamic Food & Beverage ETF

        X

Invesco Dynamic Large Cap Growth ETF

        X

Invesco Dynamic Large Cap Value ETF

        X

Invesco Dynamic Leisure and Entertainment ETF

  X       X

Invesco Dynamic Market ETF

        X

Invesco Dynamic Media ETF

  X       X

Invesco Dynamic Networking ETF

        X

Invesco Dynamic Oil & Gas Services ETF

        X

Invesco Dynamic Pharmaceuticals ETF

        X

Invesco Dynamic Semiconductors ETF

        X

Invesco Dynamic Software ETF

        X

Invesco Financial Preferred ETF

        X

Invesco FTSE RAFI US 1000 ETF

        X

Invesco FTSE RAFI US 1500 Small-Mid ETF

        X

Invesco Global Listed Private Equity ETF

     N/A    X

Invesco Golden Dragon China ETF

  X    N/A    X

Invesco High Yield Equity Dividend AchieversTM ETF

        X

Invesco International Dividend AchieversTM ETF

  X       X

 

  102  

 

 

 

 


 

 

Approval of Investment 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 MSCI Sustainable Future ETF

        X

Invesco S&P 100 Equal Weight ETF

     X    X

Invesco S&P 500 GARP ETF

        X

Invesco S&P 500® Quality ETF

  X       X

Invesco S&P 500 Value with Momentum ETF

        X

Invesco S&P MidCap Momentum ETF

        X

Invesco S&P MidCap Quality ETF

        X

Invesco S&P MidCap Value with Momentum ETF

     X    X

Invesco S&P SmallCap Momentum ETF

        X

Invesco S&P SmallCap Value with Momentum ETF

     X    X

Invesco S&P Spin-Off ETF

        X

Invesco Water Resources ETF

  X    X    X

Invesco WilderHill Clean Energy ETF

     X    X

Invesco Zacks Mid-Cap ETF

        X

Invesco Zacks Multi-Asset Income ETF

        X

 

*

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

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 open-end actively-managed peer funds. The Trustees noted that a significant component of the non-advisory fee expenses was the sub-licensing fees paid by the Funds and noted those Funds for which sub-license fees are subject to the Funds’ Expense Caps.

 

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 Aerospace & Defense ETF

        X

Invesco Buyback AchieversTM ETF

        X

Invesco Dividend AchieversTM ETF

     X    X

Invesco DWA Basic Materials Momentum ETF

        X

Invesco DWA Consumer Cyclicals Momentum ETF

        X

Invesco DWA Consumer Staples Momentum ETF

        X

Invesco DWA Energy Momentum ETF

        X

Invesco DWA Financial Momentum ETF

        X

Invesco DWA Healthcare Momentum ETF

        X

Invesco DWA Industrials Momentum ETF

        X

Invesco DWA Momentum ETF

     X    X

Invesco DWA Technology Momentum ETF

        X

Invesco DWA Utilities Momentum ETF

        X

Invesco Dynamic Biotechnology & Genome ETF

        X

Invesco Dynamic Building & Construction ETF

        X

Invesco Dynamic Energy Exploration & Production ETF

        X

Invesco Dynamic Food & Beverage ETF

        X

Invesco Dynamic Large Cap Growth ETF

        X

Invesco Dynamic Large Cap Value ETF

        X

 

  103  

 

 

 

 


 

 

Approval of Investment 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 Dynamic Leisure and Entertainment ETF

        X

Invesco Dynamic Market ETF

        X

Invesco Dynamic Media ETF

        X

Invesco Dynamic Networking ETF

        X

Invesco Dynamic Oil & Gas Services ETF

        X

Invesco Dynamic Pharmaceuticals ETF

        X

Invesco Dynamic Semiconductors ETF

        X

Invesco Dynamic Software ETF

        X

Invesco Financial Preferred ETF

        X

Invesco FTSE RAFI US 1000 ETF

        X

Invesco FTSE RAFI US 1500 Small-Mid ETF

        X

Invesco Global Listed Private Equity ETF

     N/A    X

Invesco Golden Dragon China ETF

     N/A    X

Invesco High Yield Equity Dividend AchieversTM ETF

     X    X

Invesco International Dividend AchieversTM ETF

        X

Invesco MSCI Sustainable Future ETF

        X

Invesco S&P 100 Equal Weight ETF

     X    X

Invesco S&P 500 GARP ETF

        X

Invesco S&P 500® Quality ETF

  X       X

Invesco S&P 500 Value with Momentum ETF

        X

Invesco S&P MidCap Momentum ETF

        X

Invesco S&P MidCap Quality ETF

        X

Invesco S&P MidCap Value with Momentum ETF

     X    X

Invesco S&P SmallCap Momentum ETF

        X

Invesco S&P SmallCap Value with Momentum ETF

     X    X

Invesco S&P Spin-Off ETF

        X

Invesco Water Resources ETF

  X    X    X

Invesco WilderHill Clean Energy ETF

     X    X

Invesco Zacks Mid-Cap ETF

        X

Invesco Zacks Multi-Asset Income ETF

        X

 

*

The information provided by the Adviser indicated that certain Funds did not have any 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 Dynamic Large Cap Value ETF’s, Invesco Dynamic Oil & Gas ETF’s, Invesco S&P Spin-Off ETF’s, Invesco Global Listed Private Equity ETF’s, Invesco Zacks Mid-Cap ETF’s and Invesco Zacks Multi-Asset Income 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 that of Invesco FTSE RAFI US 1000 ETF. 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.

 

  104  

 

 

 

 


 

 

Approval of Investment Advisory Contracts–(continued)

Based on all of the information provided, the Board determined that the contractual advisory fee and net expense ratio of each Fund were reasonable and appropriate in light of the services provided, the nature of the index, the distinguishing factors of the Fund, and the administrative, operational and management oversight costs for the Adviser.

In conjunction with their review of fees, the Trustees considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for the Funds, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser regarding its overall profitability, as well as the estimated profitability to the Adviser from its relationship to each Fund. With respect to the Adviser’s profitability information, the Trustees considered that there is no recognized standard or uniform methodology for determining profitability for this purpose. Furthermore, the Trustees noted that there are limitations inherent in allocating costs and calculating profitability for an organization such as the Adviser’s. Based on the information provided, the Board 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 the Fund’s shareholders. The Trustees reviewed each Fund’s asset size, advisory fee, expense ratio and Expense Cap agreed to by the Adviser. The Trustees noted that the Expense Cap agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than Invesco Dynamic Market ETF, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap then in effect or in effect at the time the fees and/or expenses subject to reimbursement were waived and/or borne by the Adviser. The Trustees also noted that the Adviser has reduced advisory fees for the Invesco ETFs numerous times since 2011, including through permanent advisory fee reductions and various advisory fee waivers. The Board considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund and concluded that the flat advisory fee rates were 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 is not a party to any soft-dollar, commission recapture or directed brokerage arrangements with respect to the Funds. 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 from affiliated money market cash management vehicles and fees as the Funds’ 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 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.

 

  105  

 

 

 

 


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.


 

 

 

 

 

 

©2023 Invesco Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   P-PS-AR-3            invesco.com/ETFs