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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