PBE		Invesco Dynamic Biotechnology & Genome ETF
PKB		Invesco Dynamic Building & Construction ETF
PXE		Invesco Dynamic Energy Exploration & Production ETF
PBJ		Invesco Dynamic Food & Beverage ETF
PEJ		Invesco Dynamic Leisure and Entertainment ETF
PBS		Invesco Dynamic Media ETF
PXQ		Invesco Dynamic Networking ETF
PXJ		Invesco Dynamic Oil & Gas Services ETF
PJP		Invesco Dynamic Pharmaceuticals ETF
PSI		Invesco Dynamic Semiconductors ETF
PSJ		Invesco Dynamic Software ETF

Domestic Equity

As many businesses began to shut down in April 2020 due to coronavirus (COVID-19), US unemployment numbers continued to climb, as the economy ground to a halt. However, during the second and into the third quarter of 2020, US stocks largely shrugged off economic uncertainty, social unrest and a resurgence in COVID-19 infections to rally from the market bottom. Investor sentiment improved in response to trillions of dollars in economic stimulus, progress on a COVID-19 vaccine and re-openings in many US regions. In July, the US Federal Reserve (the Fed) extended its emergency stimulus programs, originally scheduled to end in September, to year-end, which provided support to equities. In late August, second- quarter gross domestic product (GDP) fell by 31.4%,¹ a record decline. Despite the extreme drop in the economy, the S&P 500 Index not only erased all its losses from the first quarter but made record highs.

Despite a September selloff, US equity markets posted gains in the third quarter as the Fed extended its emergency stimulus programs and changed its inflation target policy, both of which supported equities. Data for both manufacturing and services indicated expansion, a reversal from significant declines earlier in the year. Corporate earnings were also better than anticipated and a gradual decline in new COVID-19 infections in many regions, combined with optimism about progress on a COVID-19 vaccine, further boosted stocks. October saw increased volatility as COVID-19 infection rates rose to record highs in the US and in Europe. Investors also became concerned about delayed results from the US presidential election and the real possibility of a contested election, further delaying a clear winner.

US equity markets posted gains in the fourth quarter, as positive news on COVID-19 vaccines and strong corporate earnings outweighed investor concerns about the political disagreement over a fiscal stimulus package and sharply rising COVID-19 infections nationwide. Cyclical sectors like energy and financials led the way, while real estate and consumer staples lagged. Market leadership also shifted during the quarter with value stocks outperforming growth for the first time since the fourth quarter of 2016. While the US economy rebounded significantly since COVID-19 began, the recovery appeared to slow in the fourth quarter with employment gains and GDP growth down from the third quarter. However, stocks were buoyed by the Fed’s pledge to maintain its accommodative stance and asset purchases, “until substantial further progress has been made” toward employment and inflation targets.

US political unrest and rising COVID-19 infection rates marked the start of the first quarter. Additionally, retail investors bid up select stocks like GameStop and AMC Theaters, ultimately causing a sharp selloff in late January. Corporate earnings generally beat expectations, but market volatility rose during the quarter as investors worried about rising bond yields and inflation. Despite

the Fed’s commitment to an accommodative policy, the 10-year US Treasury yield rose from 0.92% at year-end to 1.63%² at the fiscal year-end. Approval of a third COVID-19 vaccine boosted investors’ optimism for faster economic recovery. Although March saw increased volatility with consecutive down days in the US stock market, stocks continued to hit all-time highs through April. US stocks had strong returns for the fiscal year, with the S&P 500 Index returning 45.98% for the year.³

 

1	Source: US Bureau of Economic Analysis

2	Source: Bloomberg L.P.

3	Source: Lipper Inc.

Global Equity

Despite the continuing global spread of COVID-19 at the beginning of the fiscal year, many countries achieved some success in controlling the spread and were able to slowly re-open their economies. Global equity markets benefited from government policy responses to the crisis, which were swift and encouraging. Many economies received fiscal stimulus and very significant monetary stimulus. The massive monetary policy responses created an environment in which investors embraced risk, and stocks rose globally after a deep rout.

Building on progress made in the latter part of the second quarter, many countries were able to continue reducing COVID-19-related stringency protocols. As a result, the “green shoots” we saw at the end of the second quarter grew and flourished into the third quarter, as many countries experienced a strong economic rebound.

At the end of 2020, global equity markets again posted gains as good news about COVID-19 vaccines outweighed concerns about sharply rising infection rates and tightening social restrictions. In most global regions, equity market leadership shifted as value stocks outperformed growth stocks. Sectors that had been severely affected by COVID-19, including energy and financials, were among the fourth quarter’s top performers. Emerging market equities posted robust gains amplified by US dollar weakness.

Global equity markets ended the first quarter in positive territory amid concerns about rising bond yields and inflation. The value-led equity rally continued in most regions, with value stocks outperforming growth stocks. The successful rollout of COVID-19 vaccinations in the US and UK benefited equity markets. However, even regions facing slower rollouts, including the Eurozone and Japan, performed well, driven by a rebound in global demand for goods.

At the end of the fiscal year, global equity markets were mixed with more cyclical markets lagging. We saw a pause in the value-lead equity rally; growth stocks outperformed value stocks in April. Overall, developed market equities and emerging market equities had strong returns for the fiscal year.

As an index fund, the Invesco Dynamic Biotechnology & Genome ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Biotech & Genome Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index which is composed of common stocks of U.S. biotechnology and genome companies. These companies are engaged principally in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research. These companies may include, for example, biopharmaceutical companies that actively participate in the research and development, animal testing and partial human testing phases of drug development, typically using biotechnological techniques that required the use of living organisms, cells and/or components of cells; outsourced services companies that utilize drug delivery technologies in the development of therapeutics for the biopharmaceutical industry or provide biopharmaceutical companies with novel biological targets and drug leads, and scientific products such as bio-analytical instruments, reagents, and chemicals. 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, 2021, on a market price basis, the Fund returned 41.37%. On a net asset value (“NAV”) basis, the Fund returned 41.74%. During the same time period, the Index returned 42.63%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Biotech Index (the “Benchmark Index”) returned 7.39%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 26 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 biotech industry. It is important to note, however, that the Index includes stocks from its proprietary “Biotechnology & Genome Group Universe” of which approximately 95% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 5% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology companies. This Benchmark Index is relevant

as a comparison, but the disparity compared to pure biotechnology exposure may produce potentially significant differences in performance when compared to the Fund.

Relative to the Benchmark Index, the Fund was most overweight in the life sciences tools & services sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s stock selection within the biotechnology sub-industry.

For the fiscal year ended April 30, 2021, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the life sciences tools & service sub-industry, health care services sub-industry and pharmaceuticals sub-industry, respectively. The health care equipment sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included Intellia Therapeutics, Inc., a biotechnology company (portfolio average weight of 2.38%), and Pacific Biosciences of California, Inc., a life sciences tools & services company (portfolio average weight of 1.74%). Positions that detracted most significantly from the Fund’s return during this period included Gilead Sciences, Inc., a biotechnology company (no longer held at fiscal year-end), and FibroGen, Inc., a biotechnology company (portfolio average weight of 1.74%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Biotechnology			74.39
Life Sciences Tools & Services			18.34
Pharmaceuticals			5.21
Health Care Services			2.12
Money Market Funds Plus Other Assets Less Liabilities			(0.06)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Bio-Techne Corp.			6.08
Alexion Pharmaceuticals, Inc.			5.70
Amgen, Inc.			5.47
Catalent, Inc.			5.21
Seagen, Inc.			4.98
QIAGEN N.V.			4.97
BioMarin Pharmaceutical, Inc.			4.95
Illumina, Inc.			4.58
Intellia Therapeutics, Inc.			3.79
Vericel Corp.			3.72
Total			49.45

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Building & Construction ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Building & Construction Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. building and construction companies. These companies are engaged primarily in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large- scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies also may include manufacturers of building materials for home improvement and general construction projects and specialized machinery used for building and construction; companies that provide installation, maintenance or repair work; and land developers. 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, 2021, on a market price basis, the Fund returned 99.54%. On a net asset value (“NAV”) basis, the Fund returned 99.81%. During the same time period, the Index returned 101.07%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns.

During this same time period, the S&P Composite 1500^® Construction & Engineering Index (the “Benchmark Index”) returned 103.91%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 13 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 building & construction industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the homebuilding sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation to

the construction & engineering sub-industry and overweight allocation to the gas utilities sub-industry.

For the fiscal year ended April 30, 2021, the home building sub-industry contributed most significantly to the Fund’s return, followed by the construction materials and building products sub-industries, respectively. The gas materials sub-industry detracted most significantly from the Fund’s return, followed by the environmental & facilities services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included D.R. Horton, Inc., a homebuilding company (portfolio average weight of 5.01%) and GrowGeneration Corp., a home improvement retail company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Southwest Gas Holdings, Inc., a gas utilities company (portfolio average weight of 2.59%) and Lennox International, Inc., a building products company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Homebuilding			23.09
Construction Materials			16.80
Construction & Engineering			13.17
Building Products			12.98
Home Improvement Retail			10.94
Construction Machinery & Heavy Trucks			5.44
Home Furnishings			5.20
Specialty Stores			5.11
Sub-Industry Types Each Less Than 3%			7.29
Money Market Funds Plus Other Assets Less Liabilities			(0.02)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
D.R. Horton, Inc.			5.76
Home Depot, Inc. (The)			5.54
Lowe’s Cos., Inc.			5.40
Mohawk Industries, Inc.			5.20
Tractor Supply Co.			5.11
Trane Technologies PLC			4.98
Vulcan Materials Co.			4.62
Martin Marietta Materials, Inc.			4.58
Century Communities, Inc.			3.33
Tri Pointe Homes, Inc.			3.06
Total			47.58

 

*	Excluding money market fund holdings.

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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.59%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Energy Exploration & Production ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Energy Exploration & Production Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. companies involved in the exploration and production of natural resources used to produce energy. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells. These companies may include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid. 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, 2021, on a market price basis, the Fund returned 55.94%. On a net asset value (“NAV”) basis, the Fund returned 55.47%. During the same time period, the Index returned 56.09%. 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 due to fees and operating expenses, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned 52.62%. 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 oil & gas exploration & production sub-industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s stock selection in the oil & gas exploration & production sub-industry.

For the fiscal year ended April 30, 2021, the oil & gas exploration & production sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas refining & marketing sub-industry. The integrated oil & gas sub-industry was the only detractor from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included Denbury Inc., an oil & gas exploration & production company (portfolio average weight of 2.05%) and Ovintiv, Inc., an oil & gas exploration & production company (portfolio average weight of 2.93%). Positions that detracted most significantly from the Fund’s return during this period included Comstock Resources, Inc., an oil & gas exploration & production company (portfolio average weight of 2.61%) and Occidental Petroleum Corp., an oil & gas refining & marketing company (portfolio average weight of 2.34%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Oil & Gas Exploration & Production			76.37
Oil & Gas Refining & Marketing			19.04
Integrated Oil & Gas			4.61
Money Market Funds Plus Other Assets Less Liabilities			(0.02)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Hess Corp.			5.41
EOG Resources, Inc.			5.07
Pioneer Natural Resources Co.			5.02
Marathon Petroleum Corp.			4.91
ConocoPhillips			4.69
Phillips 66			4.65
Occidental Petroleum Corp.			4.61
Valero Energy Corp.			4.60
Oasis Petroleum, Inc.			3.62
Matador Resources Co.			3.46
Total			46.04

 

*	Excluding money market fund holdings.

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, 2023. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.84% and the net annual operating expense ratio was indicated as 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Food & Beverage ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Food & Beverage Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. food and beverage companies. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. These companies may include consumer manufacturing of agricultural inputs like livestock and crops, as well as processed food and beverage products; food and beverage stores such as grocery stores, supermarkets, wholesale distributors of grocery items; and food and beverage services like restaurants, bars, snack bars, coffeehouses and other establishments providing food and refreshment. Companies with focused operations, such as tobacco growers and manufacturers or pet supplies stores, are specifically excluded from this universe. 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, 2021, on a market price basis, the Fund returned 37.63%. On a net asset value (“NAV”) basis, the Fund returned 37.65%. During the same time period, the Index returned 38.22%. 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, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Food Beverage & Tobacco Index (the “Benchmark Index”) returned 25.54%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 46 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 food & beverage industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the food retail sub-industry and most underweight in the soft drinks sub-industry during the fiscal year ended April 30, 2021.

The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s stock selection in and underweight allocation to the soft drink sub-industry.

For the fiscal year ended April 30, 2021, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the soft drink sub-industry. No sub-industry detracted from the Fund’s performance during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included Darling Ingredients, Inc., an agricultural products company (portfolio average weight of 3.14%) and Chipotle Mexican Grill, Inc., a restaurants company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included TreeHouse Foods, Inc., a packaged foods & meats company (no longer held at fiscal year-end) and SpartanNash Co., a food distributors company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Packaged Foods & Meats			33.92
Soft Drinks			22.96
Agricultural Products			11.03
Distillers & Vintners			9.67
Food Retail			8.64
Fertilizers & Agricultural Chemicals			4.86
Food Distributors			3.46
Sub-Industry Types Each Less Than 3%			5.42
Money Market Funds Plus Other Assets Less Liabilities			0.04
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Keurig Dr Pepper, Inc.			5.26
Monster Beverage Corp.			5.14
Mondelez International, Inc., Class A			5.09
Kraft Heinz Co. (The)			5.01
Constellation Brands, Inc., Class A			4.99
Coca-Cola Co. (The)			4.87
Corteva, Inc.			4.86
Brown-Forman Corp., Class B			4.68
United Natural Foods, Inc.			3.46
Sprouts Farmers Market, Inc.			3.08
Total			46.44

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Leisure and Entertainment ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Leisure & Entertainment Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. leisure and entertainment companies. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries. These companies may include hospitality industry companies such as hotels, restaurants and bars, cruise lines, casinos, and all other recreation and amusement businesses, as well as entertainment programming companies engaged in the production of motion pictures, music by recording artists, programming for radio and television, related post-production and movie theaters. 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, 2021, on a market price basis, the Fund returned 68.53%. On a net asset value (“NAV”) basis, the Fund returned 69.34%. During the same time period, the Index returned 70.31%. 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 revenue generated through the Fund’s securities lending program.

During this same time period, the S&P Composite 1500^® Hotels Restaurants & Leisure Index (the “Benchmark Index”) returned 59.30%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 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 leisure & entertainment industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the movies & entertainment sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the restaurants sub-industry and overweight allocation to the broadcasting sub-industry.

For the fiscal year ended April 30, 2021, the broadcasting sub-industry contributed most significantly to the Fund’s return, followed by the restaurants sub-industry. The cable & satellite sub-industry detracted most significantly from the Fund’s return, followed by the interactive media & services sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included ViacomCBS, Inc., a broadcasting company (portfolio average weight of 5.42%) and Penn National Gaming, Inc., a casino & gaming company (portfolio average weight of 2.28%). Positions that detracted most significantly from the Fund’s return during this period included MSG Networks, Inc., a cable & satellite company (no longer held at fiscal year-end) and MakeMyTrip Ltd., a hotels, resorts & cruise lines company (portfolio average weight of 0.45%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Movies & Entertainment			30.39
Hotels, Resorts & Cruise Lines			12.86
Broadcasting			12.85
Food Distributors			11.60
Casinos & Gaming			8.11
Restaurants			8.11
Internet & Direct Marketing Retail			7.10
Interactive Media & Services			6.45
Interactive Home Entertainment			2.55
Money Market Funds Plus Other Assets Less Liabilities			(0.02)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Booking Holdings, Inc.			5.52
Chipotle Mexican Grill, Inc.			5.39
Sysco Corp.			5.36
Walt Disney Co. (The)			4.96
Airbnb, Inc., Class A			4.83
DoorDash, Inc., Class A			4.37
Discovery, Inc., Class A			3.73
Eventbrite, Inc., Class A			3.44
AMC Entertainment Holdings, Inc., Class A			3.36
ViacomCBS, Inc., Class B			3.34
Total			44.30

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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, 2023. 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 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund

As an index fund, the Invesco Dynamic Media ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Media Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. media companies. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry. These companies produce and distribute information and entertainment content and may include television and radio stations, broadcast and cable networks, motion picture companies, music producers, print publishers, and providers of content delivered via the internet, as well as direct to home satellite services, traditional cable services, and advertising and related services. 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, 2021, on a market price basis, the Fund returned 87.53%. On a net asset value (“NAV”) basis, the Fund returned 87.47%. During the same time period, the Index returned 88.38%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Media Index (the “Benchmark Index”) returned 52.99%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 22 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 media industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the interactive media & services sub-industry and most underweight in the cable & satellite sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that

period can be attributed to the Fund’s relative overweight allocation to the interactive media & services sub-industry.

For the fiscal year ended April 30, 2021, the interactive media & services sub-industry contributed most significantly to the Fund’s return, followed by the movies & entertainment and broadcasting sub-industries, respectively. The cable & satellite 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, 2021, included Spotify Technology SA, an entertainment company (no longer held at fiscal year-end) and Fiverr International Ltd., an internet & direct marketing retail company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included EverQuote, Inc., Class A, an interactive media & services company (no longer held at fiscal year-end) and Boston Omaha Corp., Class A, a media company (portfolio average weight of 0.35%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Interactive Media & Services			34.97
Broadcasting			26.00
Movies & Entertainment			13.41
Advertising			10.93
Publishing			9.32
Internet & Direct Marketing Retail			5.43
Money Market Funds Plus Other Assets Less Liabilities			(0.06)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Facebook, Inc., Class A			6.37
Alphabet, Inc., Class A			5.82
Match Group, Inc.			5.12
Netflix, Inc.			4.69
Zillow Group, Inc., Class C			4.26
Pinterest, Inc., Class A			4.19
Twitter, Inc.			3.70
Meredith Corp.			3.34
Interpublic Group of Cos., Inc. (The)			3.31
ViacomCBS, Inc., Class B			3.28
Total			44.08

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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, 2023. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.66% and the net annual operating expense ratio was indicated as 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Networking ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Networking Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. networking companies. These companies are principally engaged in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. These companies may include communications equipment companies that offer a broad range of access, transport, and connectivity equipment and devices which span across a diverse set of markets including enterprise networking, home networking, satellite, wireless (terrestrial), wireline wide area networking, and cable (CATV). Such companies also may provide integrated circuits specialized to facilitate communications within a network; software that enables, manages, supports, and secures enterprise networks; and equipment used to build storage networks, which are specialized, high speed networks dedicated to accessing storage data. 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, 2021, on a market price basis, the Fund returned 48.90%. On a net asset value (“NAV”) basis, the Fund returned 48.59%. During the same time period, the Index returned 49.43%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns, partially offset by income received from the securities lending program in which the Fund participates.

During this same time period, the S&P Composite 1500^® Communications Equipment Index (the “Benchmark Index”) returned 26.13%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 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 communications equipment industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the

communications equipment sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the systems software sub-industry.

For the fiscal year ended April 30, 2021, the systems software sub-industry contributed most significantly to the Fund’s return followed by the communications equipment and semiconductors sub-industries, respectively. No sub-industry detracted from the Fund’s performance during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included CrowdStrike Holdings, Inc., Class A, a systems software company (portfolio average weight of 4.19%) and Qualcomm, Inc., a semiconductors company (portfolio average weight of 5.15%). Positions that detracted most significantly from the Fund’s return during this period included Infinera Corporation, a communications equipment company (no longer held at fiscal year-end) and SailPoint Technologies Holdings, Inc., a systems software company (portfolio average weight of 0.41%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Systems Software			31.77
Communications Equipment			29.80
Semiconductors			11.71
Electronic Components			7.56
Application Software			5.52
Technology Hardware, Storage & Peripherals			5.40
Internet Services & Infrastructure			5.23
Consumer Electronics			3.00
Money Market Funds Plus Other Assets Less Liabilities			0.01
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Marvell Technology, Inc.			6.62
Cisco Systems, Inc.			5.56
Apple, Inc.			5.40
Amphenol Corp., Class A			5.35
Okta, Inc.			5.23
QUALCOMM, Inc.			5.09
Crowdstrike Holdings, Inc., Class A			4.97
Palo Alto Networks, Inc.			4.88
Fortinet, Inc.			3.30
McAfee Corp., Class A			3.18
Total			49.58

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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, 2023. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% and the net annual operating expense ratio was indicated as 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Oil & Gas Services ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Oil Services Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. companies that assist in the production, processing and distribution of oil and gas. The Index may include companies engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing. 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, 2021, on a market price basis, the Fund returned 43.19%. On a net asset value (“NAV”) basis, the Fund returned 43.34%. During the same time period, the Index returned 44.92%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the daily compounding of fees during a time period of high returns, operating expenses incurred during the period, and differences in the treatment of corporate actions.

During this same time period, the S&P Composite 1500^® Energy Equipment & Services Index (the “Benchmark Index”) returned 59.93%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 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 oil & gas services industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas storage & transportation sub-industry and most underweight in the oil & gas equipment & services sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the oil & gas storage & transportation sub-industry, as well as the Fund’s stock selection in and relative underweight allocation to the oil & gas equipment & services sub-industry.

For the fiscal year ended April 30, 2021, the oil & gas equipment & services sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas drilling sub-industry. The oil & gas storage & transportation 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, 2021, included ChampionX Corp., an oil & gas equipment & services company (portfolio average weight of 6.24%) and Baker Hughes Co., Class A, an oil & gas equipment & services company (portfolio average weight of 6.81%). Positions that detracted most significantly from the Fund’s return during this period included Scorpio Tankers, Inc., an oil & gas storage & transportation company (no longer held at fiscal year-end) and Frontline Ltd., an oil & gas storage & transportation company (portfolio average weight 5.60%).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Oil & Gas Equipment & Services			69.74
Oil & Gas Drilling			18.75
Oil & Gas Storage & Transportation			4.51
Money Market Funds Plus Other Assets Less Liabilities			7.00
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
ChampionX Corp.			7.89
NOV, Inc.			7.50
Schlumberger Ltd.			7.38
Transocean Ltd.			7.10
Halliburton Co.			6.92
Helmerich & Payne, Inc.			6.88
Cactus, Inc., Class A			4.80
Archrock, Inc.			4.79
Patterson-UTI Energy, Inc.			4.77
Baker Hughes Co., Class A			4.53
Total			62.56

 

*	Excluding money market fund holdings.

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, 2023. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.05% and the net annual operating expense ratio was indicated as 0.63%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Pharmaceuticals ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Pharmaceutical Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of

U.S. pharmaceuticals companies. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. In accordance with the Index methodology, the various types of companies may include companies from the following segments of the pharmaceutical industry:

- Big Pharmaceutical: Large, vertically integrated drug companies that actively participate in all major phases of the drug development process, including research and development, animal and human testing, manufacturing and sales and marketing.

- Specialty Pharmaceutical: Midsize, often vertically integrated drug companies specializing in one or two therapeutic areas using both traditional chemical techniques and biotechnological techniques (involving living organisms, cells, and/or components of cells) to develop drugs.

- Generic Pharmaceutical: Generally midsize to small non-vertically integrated drug companies that actively participate only in the manufacturing and sometimes sales and marketing of patent- expired drugs.

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, 2021, on a market price basis, the Fund returned 26.10%. On a net asset value (“NAV”) basis, the Fund returned 25.89%. During the same time period, the Index returned 26.61%. 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 Composite 1500^® Pharmaceuticals Index (the “Benchmark Index”) returned 10.47%. 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 pharmaceuticals industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a modified equal weighting and stock selection methodology,

whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the biotechnology sub-industry followed by its stock selection in the pharmaceuticals sub-industry.

For the fiscal year ended April 30, 2021, the biotechnology sub-industry was the primary contributing sub-industry followed by the pharmaceuticals sub-industry. No sub-industry detracted from the Fund’s performance during this period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included, Horizon Therapeutics PLC, a biotechnology company (portfolio average weight of 3.09%) and Corcept Therapeutics Inc., a pharmaceuticals company (portfolio average weight of 3.19%). Positions that detracted most significantly from the Fund’s return during this period included Gilead Sciences, Inc., a biotechnology company (portfolio average weight of 4.74%) and Eagle Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Pharmaceuticals			52.54
Biotechnology			42.05
Health Care Equipment			5.50
Money Market Funds Plus Other Assets Less Liabilities			(0.09)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Secaurity
Pfizer, Inc.			6.36
Amgen, Inc.			5.86
AbbVie, Inc.			5.78
Gilead Sciences, Inc.			5.62
Johnson & Johnson			5.56
Merck & Co., Inc.			5.55
Abbott Laboratories			5.50
Eli Lilly and Co.			4.99
United Therapeutics Corp.			3.80
Alexion Pharmaceuticals, Inc.			3.49
Total			52.51

 

*	Excluding money market fund holdings.

Fund Inception: June 23, 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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.56%. 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.

Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Fund.

As an index fund, the Invesco Dynamic Semiconductors ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Semiconductor Intellidex^SM 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, ICE Data Indices, LLC (the “Index Provider”) compiles and maintains the Index, which is composed of common stocks of U.S. semiconductor companies. These companies are principally engaged in the manufacture of semiconductors. These companies manufacture semiconductors that serve as the core electronic components of virtually all electronic equipment; make or test chips for third parties; and provide equipment or services used in the production of semiconductors and other thin film products like flat panel displays and thin film heads. 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, 2021, on a market price basis, the Fund returned 90.32%. On a net asset value (“NAV”) basis, the Fund returned 90.83%. During the same time period, the Index returned 92.02%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the fees and expenses that the Fund incurred during the period, the effect of which was compounded during a time period of high returns.

During this same time period, the S&P Composite 1500^® Semiconductor Index (the “Benchmark Index”) returned 56.66%. 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 semiconductors industry.

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

Relative to the Benchmark Index, the Fund was most overweight in the semiconductor equipment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2021. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation to the semiconductor equipment sub-industry and stock selection in the semiconductors sub-industry.

For the fiscal year ended April 30, 2021, the semiconductors and semiconductor equipment sub-industries contributed most significantly to the Fund’s return. The specialty chemicals and electronic manufacturing services sub-industries 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, 2021, included Applied Materials, Inc., a semiconductor equipment company (portfolio average weight of 4.99%) and NVIDIA Corp., a semiconductors company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included Intel Corp., a semiconductors company (no longer held at fiscal year-end) and Cirrus Logic, Inc., a semiconductors company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2021
Semiconductors			57.20
Semiconductor Equipment			37.09
Sub-Industry Types Each Less Than 3%			5.69
Money Market Funds Plus Other Assets Less Liabilities			0.02
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2021
Security
Applied Materials, Inc.			5.51
Lam Research Corp.			5.37
Texas Instruments, Inc.			5.01
QUALCOMM, Inc.			4.85
Broadcom, Inc.			4.72
Analog Devices, Inc.			4.72
Advanced Micro Devices, Inc.			4.69
Micron Technology, Inc.			4.62
Camtek Ltd.			3.35
Brooks Automation, Inc.			3.28
Total			46.12

 

*	Excluding money market fund holdings.