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Invesco Annual Report to Shareholders

April 30, 2021

 

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

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Table of Contents

 

The Market Environment    3
Management’s Discussion of Fund Performance    4
Liquidity Risk Management Program    26
Schedules of Investments   

Invesco Dynamic Biotechnology & Genome ETF (PBE)

   27

Invesco Dynamic Building & Construction ETF (PKB)

   29

Invesco Dynamic Energy Exploration & Production ETF (PXE)

   31

Invesco Dynamic Food & Beverage ETF (PBJ)

   33

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

   35

Invesco Dynamic Media ETF (PBS)

   37

Invesco Dynamic Networking ETF (PXQ)

   39

Invesco Dynamic Oil & Gas Services ETF (PXJ)

   41

Invesco Dynamic Pharmaceuticals ETF (PJP)

   42

Invesco Dynamic Semiconductors ETF (PSI)

   44

Invesco Dynamic Software ETF (PSJ)

   46
Statements of Assets and Liabilities    48
Statements of Operations    50
Statements of Changes in Net Assets    52
Financial Highlights    56
Notes to Financial Statements    65
Report of Independent Registered Public Accounting Firm    77
Fund Expenses    78
Tax Information    80
Trustees and Officers    81
Approval of Investment Advisory Contracts    91

 

 

  2  

 


 

The Market Environment

 

 

 

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.

 

 

  3  

 


 

 

PBE    Management’s Discussion of Fund Performance
   Invesco Dynamic Biotechnology & Genome ETF (PBE)

 

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 IntellidexSM 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.

 

 

  4  

 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

   

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  
Dynamic Biotech & Genome IntellidexSM Index     42.63     16.86     59.58     14.45     96.34     13.18     244.83       11.47     459.09
S&P Composite 1500® Biotech Index     7.39       9.94       32.87       8.12       47.77       17.25       391.10         13.27       620.95  
Fund                    
NAV Return     41.74       16.23       57.04       14.12       93.52       12.84       234.72         11.08       429.00  
Market Price Return     41.37       16.17       56.76       14.10       93.43       12.82       233.97         11.07       428.37  

 

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.

 

 

  5  

 


 

 

PKB    Management’s Discussion of Fund Performance
   Invesco Dynamic Building & Construction ETF (PKB)

 

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 IntellidexSM 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.

 

 

  6  

 


 

Invesco Dynamic Building & Construction ETF (PKB) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

   

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  
Dynamic Building & Construction IntellidexSM Index     101.07     20.56     75.24     16.63     115.78     14.95     302.65       9.63     316.20
S&P Composite 1500® Construction & Engineering Index     103.91       19.30       69.77       15.78       108.02       7.90       113.87         9.10       286.20  
Fund                    
NAV Return     99.81       19.77       71.83       15.87       108.88       14.12       274.63         8.78       268.93  
Market Price Return     99.54       19.80       71.94       15.90       109.09       14.15       275.53         8.78       269.04  

 

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.

 

 

  7  

 


 

 

PXE    Management’s Discussion of Fund Performance
   Invesco Dynamic Energy Exploration & Production ETF (PXE)

 

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 IntellidexSM 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.

 

 

  8  

 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

   

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  
Dynamic Energy Exploration & Production IntellidexSM Index     56.09     (11.79 )%      (31.37 )%      (4.19 )%      (19.26 )%      (2.85 )%      (25.08 )%        2.03     36.67
S&P Composite 1500® Oil & Gas Exploration & Production Index     52.62       (10.23     (27.65     (4.09     (18.86     (5.41     (42.69       0.49       7.94  
Fund                    
NAV Return     55.47       (12.23     (32.38     (4.71     (21.42     (3.39     (29.15       1.45       25.11  
Market Price Return     55.94       (12.24     (32.41     (4.67     (21.25     (3.36     (28.95       1.46       25.24  

 

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.

 

 

  9  

 


 

 

PBJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Food & Beverage ETF (PBJ)

 

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 IntellidexSM 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.

 

 

  10  

 


 

Invesco Dynamic Food & Beverage ETF (PBJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

   

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  
Dynamic Food & Beverage IntellidexSM Index     38.22     9.85     32.56     6.97     40.04     9.67     151.71       8.82     281.91
S&P Composite 1500® Food Beverage & Tobacco Index     25.54       11.06       36.98       6.76       38.69       10.88       180.99         11.20       437.85  
Fund                    
NAV Return     37.65       9.29       30.52       6.35       36.05       8.99       136.52         8.13       245.16  
Market Price Return     37.63       9.36       30.79       6.37       36.16       8.97       136.06         8.13       245.33  

 

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.

 

 

  11  

 


 

 

PEJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Leisure and Entertainment ETF (PEJ)

 

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 IntellidexSM 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.

 

 

  12  

 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

   

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  
Dynamic Leisure & Entertainment IntellidexSM Index     70.31     2.17     6.64     6.71     38.36     10.57     173.13       8.99     291.39
S&P Composite 1500® Hotels Restaurants & Leisure Index     59.30       15.45       53.90       16.55       115.09       15.38       318.20         13.09       603.09  
Fund                    
NAV Return     69.34       1.52       4.63       5.98       33.70       9.77       154.03         8.30       254.01  
Market Price Return     68.53       1.42       4.31       5.95       33.54       9.75       153.64         8.29       253.57  

 

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

 

 

  13  

 


 

 

PBS    Management’s Discussion of Fund Performance
   Invesco Dynamic Media ETF (PBS)

 

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 IntellidexSM 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.

 

 

  14  

 


 

Invesco Dynamic Media ETF (PBS) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

    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  
Dynamic Media IntellidexSM Index     88.38     22.64     84.45     16.90     118.34     14.19     276.81       9.49     320.95
S&P Composite 1500® Media Index     52.99       20.60       75.42       13.34       87.01       15.10       307.92         10.98       421.77  
Fund                    
NAV Return     87.47       21.98       81.49       16.19       111.73       13.43       252.57         8.83       282.64  
Market Price Return     87.53       21.92       81.23       16.18       111.66       13.42       252.30         8.83       282.36  

 

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.

 

 

  15  

 


 

 

PXQ    Management’s Discussion of Fund Performance
   Invesco Dynamic Networking ETF (PXQ)

 

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 IntellidexSM 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.

 

 

  16  

 


 

Invesco Dynamic Networking ETF (PXQ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

    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  
Dynamic Networking IntellidexSM Index     49.43     20.91     76.78     21.79     167.91     12.40     221.98       12.58     554.23
S&P Composite 1500® Communications Equipment Index     26.13       8.72       28.52       15.97       109.77       10.43       169.79         7.35       207.65  
Fund                    
NAV Return     48.59       20.22       73.77       21.22       161.75       11.78       204.52         11.93       496.82  
Market Price Return     48.90       20.24       73.83       21.24       161.93       11.79       204.73         11.93       497.22  

 

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.

 

 

  17  

 


 

 

PXJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Oil & Gas Services ETF (PXJ)

 

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 IntellidexSM 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.

 

 

  18  

 


 

Invesco Dynamic Oil & Gas Services ETF (PXJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

    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  
Dynamic Oil Services IntellidexSM Index     44.92     (27.67 )%      (62.16 )%      (21.78 )%      (70.73 )%      (16.92 )%      (84.34 )%        (8.26 )%      (73.77 )% 
S&P Composite 1500® Energy Equipment & Services Index     59.93       (26.12     (59.68     (16.57     (59.59     (11.45     (70.34       (3.74     (44.63
Fund                    
NAV Return     43.34       (28.26     (63.07     (22.34     (71.75     (17.50     (85.39       (8.85     (76.24
Market Price Return     43.19       (28.18     (62.95     (22.28     (71.64     (17.47     (85.34       (8.83     (76.17

 

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.

 

 

  19  

 


 

 

PJP    Management’s Discussion of Fund Performance
   Invesco Dynamic Pharmaceuticals ETF (PJP)

 

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 IntellidexSM 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.

 

 

  20  

 


 

Invesco Dynamic Pharmaceuticals ETF (PJP) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

         

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  
Dynamic Pharmaceutical IntellidexSM Index     26.61     10.00     33.11     6.20     35.08     13.98     269.98       13.10     603.51
S&P Composite 1500® Pharmaceuticals Index     10.47       12.27       41.53       9.14       54.82       12.60       227.54         9.22       304.66  
Fund                    
NAV Return     25.89       9.36       30.78       5.61       31.40       13.32       249.16         12.43       540.32  
Market Price Return     26.10       9.37       30.81       5.64       31.56       13.32       249.17         12.44       541.30  

 

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.

 

 

  21  

 


 

 

PSI    Management’s Discussion of Fund Performance
   Invesco Dynamic Semiconductors ETF (PSI)

 

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 IntellidexSM 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.

 

 

  22  

 


 

Invesco Dynamic Semiconductors ETF (PSI) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

         

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  
Dynamic Semiconductor IntellidexSM Index     92.02     36.92     156.70     39.30     424.54     22.53     662.64       15.48     879.39
S&P Composite 1500® Semiconductor Index     56.66       27.57       107.60       31.48       292.92       19.42       489.76         13.00       594.56  
Fund                    
NAV Return     90.83       36.05       151.81       38.39       407.58       21.65       609.76         14.66       774.95  
Market Price Return     90.32       35.97       151.39       38.38       407.49       21.63       608.68         14.65       773.52  

 

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 0.57%. 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.

 

 

  23  

 


 

 

PSJ    Management’s Discussion of Fund Performance
   Invesco Dynamic Software ETF (PSJ)

 

As an index fund, the Invesco Dynamic Software ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the Dynamic Software IntellidexSM 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. software companies. These companies are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. These companies may include companies that design and market computer applications targeted toward various end user markets, including home/office, design/engineering, and IT infrastructure; as well as distributors of third-party software applications, primarily to resellers, retailers, and corporations. 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 65.21%. On a net asset value (“NAV”) basis, the Fund returned 65.16%. During the same time period, the Index returned 66.19%. 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® Software & Services Index (the “Benchmark Index”) returned 42.75%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 75 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 software 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 application software sub-industry and most underweight in the data processing & outsourced services 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 and stock selection in the application software sub-industry.

For the fiscal year ended April 30, 2021, the application software sub-industry contributed most significantly to the Fund’s return, followed by the interactive media & services sub-industry. The aerospace & defense sub-industry detracted most significantly from the Fund’s return, followed by the internet & direct marketing retail sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended April 30, 2021, included Snap, Inc., Class A, an interactive media & services company (no longer held at fiscal year-end) and DocuSign, Inc., an application software company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return during this period included American Software, Inc., Class A, an application software company (no longer held at fiscal year-end) and Everbridge, Inc., an application software company (no longer held at fiscal year-end).

 

Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of April 30, 2021
 
Application Software      34.00  
Systems Software      20.28  
Health Care Technology      11.87  
Interactive Home Entertainment      10.70  
Cable & Satellite      6.01  
Movies & Entertainment      4.78  
Sub-Industry Types Each Less Than 3%      12.35  
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   
Liberty Broadband Corp., Class C      6.01  
Microsoft Corp.      5.87  
HubSpot, Inc.      5.66  
Electronic Arts, Inc.      5.59  
Crowdstrike Holdings, Inc., Class A      5.32  
Activision Blizzard, Inc.      5.11  
Cadence Design Systems, Inc.      5.09  
Roku, Inc.      4.78  
Nuance Communications, Inc.      3.65  
McAfee Corp., Class A      3.45  
Total      50.53  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco Dynamic Software ETF (PSJ) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of April 30, 2021

 

         

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  
Dynamic Software IntellidexSM Index     66.19     32.95     134.97     31.96     300.08     20.35     537.44       17.03     1109.36
S&P Composite 1500® Software & Services Index     42.75       27.89       109.18       27.19       232.82       20.62       551.95         15.15       836.09  
Fund                    
NAV Return     65.16       32.16       130.85       31.11       287.49       19.56       496.70         16.29       994.22  
Market Price Return     65.21       32.10       130.50       31.10       287.30       19.55       496.34         16.28       993.22  

 

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.

 

 

  25  

 


 

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 12, 2021, 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, 2020 through December 31, 2020 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Funds and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

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

 

   

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

 

   

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

 

   

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

 

   

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

 

   

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

 

  26  

 

 

 

 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE)

April 30, 2021

 

Schedule of Investments(a)

 

        Shares                  Value          
Common Stocks & Other Equity Interests-100.06%

 

Biotechnology-74.39%

    

Alexion Pharmaceuticals, Inc.(b)

    97,333      $ 16,418,132  

Alkermes PLC(b)

    419,583        9,232,924  

Amgen, Inc.

    65,722        15,749,620  

Arrowhead Pharmaceuticals, Inc.(b)

    99,237        7,220,484  

BioMarin Pharmaceutical, Inc.(b)(c)

    182,910        14,252,347  

Blueprint Medicines Corp.(b)

    84,891        8,176,701  

CareDx, Inc.(b)

    102,908        8,136,936  

Dicerna Pharmaceuticals, Inc.(b)

    288,126        8,986,650  

Emergent BioSolutions, Inc.(b)

    83,959        5,119,820  

FibroGen, Inc.(b)(c)

    163,602        3,651,597  

Halozyme Therapeutics, Inc.(b)

    172,416        8,612,179  

Intellia Therapeutics, Inc.(b)(c)

    141,925        10,895,582  

Ironwood Pharmaceuticals, Inc.(b)

    902,308        9,961,480  

MannKind Corp.(b)(c)

    1,453,980        6,644,689  

Myriad Genetics, Inc.(b)

    270,010        8,159,702  

OPKO Health, Inc.(b)(c)

    1,845,436        7,566,288  

Precigen, Inc.(b)(c)

    983,938        7,610,760  

Sangamo Therapeutics, Inc.(b)(c)

    728,948        8,587,007  

Seagen, Inc.(b)

    99,641        14,324,390  

United Therapeutics Corp.(b)

    48,318        9,738,976  

Veracyte, Inc.(b)

    139,286        6,929,479  

Vericel Corp.(b)

    171,467        10,702,970  

Xencor, Inc.(b)

    174,450        7,424,592  
    

 

 

 
       214,103,305  
    

 

 

 

Health Care Services-2.12%

 

  

Fulgent Genetics, Inc.(b)(c)

    79,386        6,114,310  
    

 

 

 

Life Sciences Tools & Services-18.34%

 

  

Bio-Techne Corp.

    40,960        17,509,990  

Illumina, Inc.(b)

    33,534        13,173,496  

Pacific Biosciences of California, Inc.(b)

    261,642        7,810,014  

QIAGEN N.V.(b)

    297,068        14,297,883  
    

 

 

 
       52,791,383  
    

 

 

 
        Shares                  Value          

Pharmaceuticals-5.21%

    

Catalent, Inc.(b)

    133,224      $ 14,983,703  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $256,641,953)

       287,992,701  
    

 

 

 
Money Market Funds-0.03%

 

  

Invesco Government & Agency Portfolio, Institutional Class, 0.03%(d)(e)
(Cost $97,394)

    97,394        97,394  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.09%
(Cost $256,739,347)

 

     288,090,095  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

  
Money Market Funds-14.83%

 

  

Invesco Private Government Fund,
0.01%(d)(e)(f)

    17,075,160        17,075,160  

Invesco Private Prime Fund, 0.11%(d)(e)(f)

    25,602,499        25,612,740  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $42,687,900)

 

     42,687,900  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-114.92%
(Cost $299,427,247)

 

     330,777,995  

OTHER ASSETS LESS LIABILITIES-(14.92)%

 

     (42,945,062
  

 

 

 

NET ASSETS-100.00%

 

   $ 287,832,933  
    

 

 

 

 

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, 2021.

(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, 2021.

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments in Affiliated Money Market Funds:

                           

Invesco Government & Agency Portfolio, Institutional Class

    $ -     $ 4,509,789     $ (4,412,395 )     $ -     $       -     $       97,394     $         16

Invesco Premier U.S. Government Money Portfolio, Institutional Class

      2,626       5,451,095       (5,453,721 )       -       -       -       60

 

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

 

  27  

 

 

 

 


 

Invesco Dynamic Biotechnology & Genome ETF (PBE)–(continued)

April 30, 2021

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments Purchased with Cash Collateral from Securities on Loan:

                           

Invesco Private Government Fund

    $ 6,405,928     $ 189,731,057     $ (179,061,825 )     $ -     $ -     $ 17,075,160     $ 3,923 *

Invesco Private Prime Fund

      -       172,948,931       (147,339,216 )       -       3,025       25,612,740       13,756 *
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 6,408,554     $ 372,640,872     $ (336,267,157 )     $ -     $ 3,025     $ 42,785,294     $ 17,755
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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, 2021.

(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 2J.

 

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

 

  28  

 

 

 

 


 

Invesco Dynamic Building & Construction ETF (PKB)

April 30, 2021

 

Schedule of Investments(a)

 

        Shares                  Value          
Common Stocks & Other Equity Interests-100.02%

 

Building Products-12.98%

    

A.O. Smith Corp.

    110,395      $ 7,479,261  

Advanced Drainage Systems, Inc.

    61,317        6,846,656  

Owens Corning

    83,288        8,063,111  

Trane Technologies PLC

    80,062        13,917,178  
    

 

 

 
       36,306,206  
    

 

 

 

Construction & Engineering-13.17%

 

  

AECOM(b)

    112,615        7,481,015  

Dycom Industries, Inc.(b)

    90,456        8,485,677  

Primoris Services Corp.

    195,086        6,371,509  

Quanta Services, Inc.

    78,552        7,591,265  

Valmont Industries, Inc.

    28,058        6,926,117  
    

 

 

 
       36,855,583  
    

 

 

 

Construction Machinery & Heavy Trucks-5.44%

 

  

Oshkosh Corp.

    61,302        7,627,808  

Terex Corp.

    161,418        7,585,032  
    

 

 

 
       15,212,840  
    

 

 

 

Construction Materials-16.80%

 

  

Eagle Materials, Inc.(b)

    53,919        7,448,371  

Forterra, Inc.(b)

    285,717        6,702,921  

Martin Marietta Materials, Inc.

    36,301        12,818,609  

Summit Materials, Inc., Class A(b)

    247,117        7,114,498  

Vulcan Materials Co.

    72,578        12,936,303  
    

 

 

 
       47,020,702  
    

 

 

 

Environmental & Facilities Services-2.16%

 

  

Tetra Tech, Inc.

    47,457        6,056,937  
    

 

 

 

Gas Utilities-2.58%

 

  

Southwest Gas Holdings, Inc.

    103,733        7,232,265  
    

 

 

 

Home Furnishings-5.20%

 

  

Mohawk Industries, Inc.(b)

    70,746        14,538,303  
    

 

 

 

Home Improvement Retail-10.94%

 

  

Home Depot, Inc. (The)

    47,843        15,485,344  

Lowe’s Cos., Inc.

    77,052        15,121,455  
    

 

 

 
       30,606,799  
    

 

 

 

Homebuilding-23.09%

 

  

Century Communities, Inc.(b)

    126,068        9,321,468  

D.R. Horton, Inc.

    163,828        16,102,654  
        Shares                  Value          

Homebuilding-(continued)

 

  

M.D.C. Holdings, Inc.

    132,306      $ 7,761,070  

Skyline Champion Corp.(b)

    153,733        6,830,357  

Toll Brothers, Inc.

    128,243        8,040,836  

TopBuild Corp.(b)

    35,894        7,982,108  

Tri Pointe Homes, Inc.(b)

    359,536        8,564,147  
    

 

 

 
       64,602,640  
    

 

 

 

Industrial Machinery-2.55%

 

  

Omega Flex, Inc.(c)

    44,828        7,127,652  
    

 

 

 

Specialty Stores-5.11%

 

  

Tractor Supply Co.

    75,743        14,285,130  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $227,036,629)

 

     279,845,057  
    

 

 

 
Money Market Funds-0.05%

 

  

Invesco Government & Agency Portfolio, Institutional Class, 0.03%(d)(e)
(Cost $161,244)

    161,244        161,244  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.07%
(Cost $227,197,873)

 

     280,006,301  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

  
Money Market Funds-0.07%

 

  

Invesco Private Government Fund,
0.01%(d)(e)(f)

    76,577        76,577  

Invesco Private Prime Fund, 0.11%(d)(e)(f)

    112,626        112,671  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $189,248)

 

     189,248  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-100.14%
(Cost $227,387,121)

 

     280,195,549  

OTHER ASSETS LESS LIABILITIES-(0.14)%

 

     (402,385
    

 

 

 

NET ASSETS-100.00%

 

   $ 279,793,164  
    

 

 

 

 

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

 

  29  

 

 

 

 


 

Invesco Dynamic Building & Construction ETF (PKB)–(continued)

April 30, 2021

 

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, 2021.

(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, 2021.

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments in Affiliated Money Market Funds:

                           

Invesco Government & Agency Portfolio, Institutional Class

    $ -     $ 1,456,219     $ (1,294,975 )     $ -     $ -     $ 161,244     $ 16

Invesco Premier U.S. Government Money Portfolio, Institutional Class

      136,080       824,684       (960,764 )       -       -       -       38

Investments Purchased with Cash

Collateral from Securities on Loan:

                           

Invesco Private Government Fund

      -       22,616,711       (22,540,134 )       -       -       76,577       255 *

Invesco Private Prime Fund

      -       17,265,739       (17,153,217 )       -       149       112,671       922 *
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 136,080     $ 42,163,353     $ (41,949,090 )     $ -     $ 149     $ 350,492     $ 1,231
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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, 2021.

(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 2J.

 

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

 

  30  

 

 

 

 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE)

April 30, 2021

 

Schedule of Investments(a)

 

        Shares                Value        
Common Stocks & Other Equity Interests-100.02%

 

Integrated Oil & Gas-4.61%

    

Occidental Petroleum Corp.

    108,344      $ 2,747,604  
    

 

 

 

Oil & Gas Exploration & Production-76.37%

 

Antero Resources Corp.(b)

    170,853        1,541,094  

Cabot Oil & Gas Corp.

    83,562        1,392,979  

California Resources Corp.(b)

    60,525        1,434,443  

Cimarex Energy Co.

    27,041        1,790,114  

CNX Resources Corp.(b)(c)

    120,262        1,613,916  

Comstock Resources, Inc.(b)(c)

    272,034        1,493,467  

ConocoPhillips

    54,665        2,795,568  

Continental Resources, Inc.(b)(c)

    63,815        1,738,321  

Denbury, Inc.(b)

    36,403        1,980,687  

Diamondback Energy, Inc.

    22,884        1,870,309  

EOG Resources, Inc.

    41,046        3,022,627  

EQT Corp.(b)

    87,115        1,663,897  

Hess Corp.

    43,250        3,222,557  

Magnolia Oil & Gas Corp.,
Class A(b)

    129,681        1,460,208  

Marathon Oil Corp.

    139,884        1,575,094  

Matador Resources Co.

    78,433        2,063,572  

Murphy Oil Corp.

    94,952        1,607,537  

Oasis Petroleum, Inc.

    27,828        2,160,009  

Ovintiv, Inc.

    69,347        1,659,474  

PDC Energy, Inc.(b)

    44,123        1,610,931  

Pioneer Natural Resources Co.

    19,449        2,991,840  

SM Energy Co.

    114,344        1,806,635  

Tellurian, Inc.(b)(c)

    537,627        1,190,844  

Whiting Petroleum Corp.(b)

    45,646        1,829,035  
    

 

 

 
       45,515,158  
    

 

 

 

Oil & Gas Refining & Marketing-19.04%

 

CVR Energy, Inc.

    68,789        1,464,518  

HollyFrontier Corp.

    41,162        1,440,670  
        Shares                Value        

Oil & Gas Refining & Marketing-(continued)

 

Marathon Petroleum Corp.

    52,633      $ 2,929,026  

Phillips 66

    34,217        2,768,498  

Valero Energy Corp.

    37,072        2,741,845  
    

 

 

 
       11,344,557  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $60,108,802)

 

     59,607,319  
    

 

 

 
Money Market Funds-0.21%

 

Invesco Government & Agency Portfolio, Institutional
Class, 0.03%(d)(e) (
Cost $126,666)

    126,666        126,666  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.23%
(Cost $60,235,468)

 

     59,733,985  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-7.05%

 

Invesco Private Government Fund,
0.01%(d)(e)(f)

    1,611,585        1,611,585  

Invesco Private Prime Fund,
0.11%(d)(e)(f)

    2,585,994        2,587,028  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $4,198,613)

 

     4,198,613  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-107.28%
(Cost $64,434,081)

 

     63,932,598  

OTHER ASSETS LESS LIABILITIES-(7.28)%

 

     (4,339,325
    

 

 

 

NET ASSETS-100.00%

 

   $ 59,593,273  
    

 

 

 

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, 2021.

(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, 2021.

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments in Affiliated Money Market Funds:

                           

Invesco Government & Agency Portfolio, Institutional Class

    $ -     $ 1,045,326     $ (918,660 )     $ -     $     -     $     126,666     $      17

Invesco Premier U.S. Government Money Portfolio, Institutional Class

      106,816       556,027       (662,843 )       -       -       -       26

 

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

 

  31  

 

 

 

 


 

Invesco Dynamic Energy Exploration & Production ETF (PXE)–(continued)

April 30, 2021

    

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments Purchased with Cash

Collateral from Securities on Loan:

                           

Invesco Private Government Fund

    $ 3,284,808     $ 22,329,823     $ (24,003,046 )     $ -     $ -     $ 1,611,585     $ 381 *

Invesco Private Prime Fund

      -       16,436,745       (13,849,904 )       -       187       2,587,028       863 *
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 3,391,624     $ 40,367,921     $ (39,434,453 )     $ -     $ 187     $ 4,325,279     $ 1,287
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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, 2021.

(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 2J.

 

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

 

  32  

 

 

 

 


 

Invesco Dynamic Food & Beverage ETF (PBJ)

April 30, 2021

 

Schedule of Investments(a)

 

        Shares                Value        
Common Stocks & Other Equity Interests-99.96%

 

Agricultural Products-11.03%

    

Archer-Daniels-Midland Co.

    36,024      $ 2,274,195  

Bunge Ltd.

    27,652        2,334,382  

Darling Ingredients, Inc.(b)

    33,237        2,308,310  

Fresh Del Monte Produce, Inc.

    82,136        2,316,235  
    

 

 

 
       9,233,122  
    

 

 

 

Brewers-2.90%

    

Boston Beer Co., Inc. (The), Class A(b)

    1,999        2,431,763  
    

 

 

 

Distillers & Vintners-9.67%

    

Brown-Forman Corp., Class B

    51,380        3,919,266  

Constellation Brands, Inc., Class A

    17,389        4,178,925  
    

 

 

 
       8,098,191  
    

 

 

 

Fertilizers & Agricultural Chemicals-4.86%

 

Corteva, Inc.

    83,512        4,072,045  
    

 

 

 

Food Distributors-3.46%

    

United Natural Foods, Inc.(b)

    78,541        2,895,021  
    

 

 

 

Food Retail-8.64%

    

Albertsons Cos., Inc., Class A

    125,392        2,328,529  

Kroger Co. (The)

    63,757        2,329,681  

Sprouts Farmers Market, Inc.(b)

    100,700        2,578,927  
    

 

 

 
       7,237,137  
    

 

 

 

Packaged Foods & Meats-33.92%

    

B&G Foods, Inc.(c)

    66,612        1,943,738  

Hain Celestial Group, Inc. (The)(b)(c)

    48,888        2,004,897  

Hostess Brands, Inc.(b)

    140,563        2,149,208  

JM Smucker Co. (The)

    17,956        2,352,056  

Kraft Heinz Co. (The)

    101,651        4,197,170  

Mondelez International, Inc., Class A

    70,098        4,262,659  

Nomad Foods Ltd. (United Kingdom)(b)

    84,589        2,466,615  

Pilgrim’s Pride Corp.(b)

    91,924        2,202,499  

Sanderson Farms, Inc.

    13,535        2,226,914  

Seaboard Corp.

    629        2,250,556  

Tyson Foods, Inc., Class A

    30,250        2,342,863  
    

 

 

 
       28,399,175  
    

 

 

 
        Shares                Value        

Personal Products-2.52%

    

Herbalife Nutrition Ltd.(b)

    46,140      $ 2,111,828  
    

 

 

 

Soft Drinks-22.96%

    

Celsius Holdings, Inc.(b)(c)

    36,079        2,067,327  

Coca-Cola Co. (The)

    75,511        4,076,084  

Coca-Cola Consolidated, Inc.

    7,853        2,302,892  

Keurig Dr Pepper, Inc.(c)

    122,764        4,401,089  

Monster Beverage Corp.(b)

    44,392        4,308,244  

National Beverage Corp.

    42,559        2,067,942  
    

 

 

 
       19,223,578  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $71,276,553)

 

     83,701,860  
    

 

 

 
Money Market Funds-0.21%

 

Invesco Government & Agency Portfolio, Institutional Class,
0.03%(d)(e)
(Cost $178,307)

    178,307        178,307  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.17%
(Cost $71,454,860)

       83,880,167  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-10.70%

 

Invesco Private Government Fund,
0.01%(d)(e)(f)

    3,583,338        3,583,338  

Invesco Private Prime Fund,
0.11%(d)(e)(f)

    5,372,858        5,375,007  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $8,958,345)

 

     8,958,345  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-110.87%
(Cost $80,413,205)

 

     92,838,512  

OTHER ASSETS LESS LIABILITIES-(10.87)%

 

     (9,103,189
    

 

 

 

NET ASSETS-100.00%

 

   $ 83,735,323  
    

 

 

 

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, 2021.

(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, 2021.

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments in Affiliated Money Market Funds:

                           

Invesco Government & Agency Portfolio, Institutional Class

    $ -     $ 1,442,263     $ (1,263,956 )     $ -     $     -     $     178,307     $      15

Invesco Premier U.S. Government Money Portfolio, Institutional Class

      99,354       1,857,323       (1,956,677 )       -       -       -       34

 

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

 

  33  

 

 

 

 


 

Invesco Dynamic Food & Beverage ETF (PBJ)–(continued)

April 30, 2021

    

 

                Change in            
    Value   Purchases   Proceeds   Unrealized   Realized   Value   Dividend
    April 30, 2020   at Cost   from Sales   Appreciation   Gain   April 30, 2021   Income

Investments Purchased with Cash

Collateral from Securities on Loan:

                           

Invesco Private Government Fund

    $ 304,437     $ 32,973,034     $ (29,694,133 )     $ -     $ -     $ 3,583,338     $ 464 *

Invesco Private Prime Fund

      -       29,247,181       (23,872,664 )       -       490       5,375,007       2,325 *
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 403,791     $ 65,519,801     $ (56,787,430 )     $ -     $ 490     $ 9,136,652     $ 2,838
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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, 2021.

(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 2J.

 

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

 

  34  

 

 

 

 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

April 30, 2021

 

Schedule of Investments(a)

 

        Shares                Value        
Common Stocks & Other Equity Interests-100.02%

 

Broadcasting-12.85%

    

AMC Networks, Inc., Class A(b)(c)

    935,327      $ 47,028,242  

Discovery, Inc., Class A(b)(c)

    1,772,609        66,756,455  

Fox Corp., Class A

    1,502,208        56,212,623  

ViacomCBS, Inc., Class B

    1,455,980        59,724,300  
    

 

 

 
       229,721,620  
    

 

 

 

Casinos & Gaming-8.11%

    

Boyd Gaming Corp.(b)

    890,776        58,924,832  

Churchill Downs, Inc.

    216,405        45,769,657  

Penn National Gaming, Inc.(b)(c)

    452,088        40,290,083  
    

 

 

 
       144,984,572  
    

 

 

 

Food Distributors-11.60%

    

Performance Food Group Co.(b)

    931,321        54,668,543  

Sysco Corp.

    1,131,362        95,860,302  

US Foods Holding Corp.(b)

    1,371,903        56,879,099  
    

 

 

 
       207,407,944  
    

 

 

 

Hotels, Resorts & Cruise Lines-12.86%

 

Airbnb, Inc., Class A(b)(c)

    499,439        86,258,110  

Booking Holdings, Inc.(b)

    39,997        98,635,802  

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

    1,636,113        44,862,218  
    

 

 

 
       229,756,130  
    

 

 

 

Interactive Home Entertainment-2.55%

 

Playtika Holding Corp.(b)

    1,641,897        45,611,899  
    

 

 

 

Interactive Media & Services-6.45%

 

Eventbrite, Inc., Class A(b)(c)

    2,611,657        61,556,756  

TripAdvisor, Inc.(b)(c)

    1,139,446        53,702,090  
    

 

 

 
       115,258,846  
    

 

 

 

Internet & Direct Marketing Retail-7.10%

 

DoorDash, Inc., Class A(b)(c)

    544,996        78,027,077  

Qurate Retail, Inc., Class A

    4,101,490        48,807,731  
    

 

 

 
       126,834,808  
    

 

 

 

Movies & Entertainment-30.39%

    

AMC Entertainment Holdings, Inc., Class A(b)(c)

    5,986,341        60,043,000  

Cinemark Holdings, Inc.(b)(c)

    2,177,922        46,171,946  

Lions Gate Entertainment Corp., Class A(b)(c)

    3,468,194        50,184,767  

Live Nation Entertainment, Inc.(b)

    568,659        46,561,799  

Madison Square Garden Entertainment Corp.(b)

    492,811        44,653,605  
        Shares                Value        

Movies & Entertainment-(continued)

 

Madison Square Garden Sports Corp., Class A(b)

    259,658      $ 47,995,185  

Manchester United PLC, Class A (United Kingdom)(c)(d)

    2,821,136        50,018,741  

Walt Disney Co. (The)(b)

    476,453        88,629,787  

Warner Music Group Corp., Class A

    1,396,006        52,992,388  

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

    1,014,635        55,916,535  
    

 

 

 
       543,167,753  
    

 

 

 

Restaurants-8.11%

    

Brinker International, Inc.(b)

    725,346        48,692,477  

Chipotle Mexican Grill, Inc.(b)

    64,516        96,259,807  
    

 

 

 
       144,952,284  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $1,786,968,105)

 

     1,787,695,856  
    

 

 

 
Money Market Funds-0.03%

 

Invesco Government & Agency Portfolio, Institutional Class,
0.03%(d)(e)
(Cost $480,462)

    480,462        480,462  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.05%
(Cost $1,787,448,567)

 

     1,788,176,318  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-23.64%

 

Invesco Private Government Fund, 0.01%(d)(e)(f)

    168,230,291        168,230,291  

Invesco Private Prime Fund,
0.11%(d)(e)(f)

    254,236,117        254,337,814  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $422,568,103)

 

     422,568,105  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-123.69%
(Cost $2,210,016,670)

 

     2,210,744,423  

OTHER ASSETS LESS LIABILITIES-(23.69)%

 

     (423,477,491
    

 

 

 

NET ASSETS-100.00%

 

   $ 1,787,266,932  
    

 

 

 

 

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

 

  35  

 

 

 

 


 

Invesco Dynamic Leisure and Entertainment ETF (PEJ)–(continued)

April 30, 2021

 

 

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, 2021.

(d) 

Affiliated issuer. The issuer is affiliated by having an investment adviser that is under common control of Invesco Ltd. and/or the Investment Company Act of 1940, as amended (the “1940 Act”), defines “affiliated person” to include an issuer of which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2021.

 

    Value
April 30, 2020
  Purchases
at Cost
  Proceeds
from Sales
  Change in
Unrealized
Appreciation
  Realized
Gain
  Value
April 30, 2021
  Dividend
Income
Investments in Affiliated Money Market Funds:                            
Invesco Government & Agency Portfolio, Institutional Class     $ -     $ 13,338,906     $  (12,858,444 )     $ -     $ -     $ 480,462     $ 79
Invesco Premier U.S. Government Money Portfolio, Institutional Class       121,538       3,040,032       (3,161,570 )       -       -       -       31
Investments Purchased with Cash Collateral from Securities on Loan:                            
Invesco Private Government Fund       5,113,813       465,994,706       (302,878,228 )       -       -       168,230,291       6,698 *
Invesco Private Prime Fund       -       544,437,176       (290,104,156 )       2       4,792       254,337,814       52,167 *
Investments in Other Affiliates:                            
Manchester United PLC, Class A       4,619,674       58,149,535       (14,102,607 )       882,239       469,900       50,018,741       80,714
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 9,855,025     $ 1,084,960,355     $ (623,105,005 )     $ 882,241     $ 474,692     $ 473,067,308     $ 139,689
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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, 2021.

(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 2J.

 

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

 

  36  

 

 

 

 


 

Invesco Dynamic Media ETF (PBS)

April 30, 2021

 

Schedule of Investments(a)

 

    Shares      Value  
Common Stocks & Other Equity Interests-100.06%

 

Advertising-10.93%

    

Boston Omaha Corp., Class A(b)

    53,554      $ 1,500,583  

Interpublic Group of Cos., Inc. (The)

    86,308        2,740,279  

Omnicom Group, Inc.

    32,589        2,680,771  

TechTarget, Inc.(b)

    27,586        2,115,846  
    

 

 

 
       9,037,479  
    

 

 

 

Broadcasting-26.00%

    

AMC Networks, Inc., Class A(b)(c)

    42,412        2,132,475  

Discovery, Inc., Class A(b)

    43,860        1,651,768  

E.W. Scripps Co. (The), Class A

    122,668        2,652,082  

Fox Corp., Class A

    68,130        2,549,424  

Gray Television, Inc.

    120,952        2,457,745  

Nexstar Media Group, Inc., Class A

    17,181        2,532,651  

Sinclair Broadcast Group, Inc., Class A(c)

    72,244        2,345,763  

TEGNA, Inc.

    123,072        2,468,824  

ViacomCBS, Inc., Class B

    66,032        2,708,633  
    

 

 

 
       21,499,365  
    

 

 

 

Interactive Media & Services-34.97%

    

Alphabet, Inc., Class A(b)

    2,046        4,815,261  

Cargurus, Inc., (Acquired 12/01/2020 -04/21/2021; Cost $2,214,269)(b)(d)

    87,506        2,159,648  

Facebook, Inc., Class A(b)

    16,202        5,266,946  

IAC/InterActiveCorp.(b)

    9,482        2,403,403  

Match Group, Inc.(b)(c)

    27,201        4,233,292  

Pinterest, Inc., Class A(b)

    52,166        3,462,257  

Twitter, Inc.(b)

    55,326        3,055,102  

Zillow Group, Inc., Class C(b)(c)

    27,075        3,522,999  
    

 

 

 
       28,918,908  
    

 

 

 

Internet & Direct Marketing Retail-5.43%

 

Qurate Retail, Inc., Class A

    186,032        2,213,781  

Shutterstock, Inc.

    26,090        2,274,526  
    

 

 

 
       4,488,307  
    

 

 

 

Movies & Entertainment-13.41%

    

Liberty Media Corp.-Liberty Formula One, Class A(b)

    57,781        2,393,289  

Lions Gate Entertainment Corp.,
Class A(b)(c)

    157,305        2,276,203  
    Shares      Value  

Movies & Entertainment-(continued)

    

Netflix, Inc.(b)

    7,553      $ 3,878,239  

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

    46,031        2,536,769  
    

 

 

 
       11,084,500  
    

 

 

 

Publishing-9.32%

    

John Wiley & Sons, Inc., Class A

    42,215        2,403,722  

Meredith Corp.(b)

    88,827        2,762,520  

News Corp., Class A

    96,983        2,540,469  
    

 

 

 
       7,706,711  
    

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $74,540,048)

       82,735,270  
    

 

 

 
Money Market Funds-0.12%

 

Invesco Government & Agency Portfolio, Institutional Class, 0.03%(e)(f)
(Cost $103,023)

    103,023        103,023  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.18%
(Cost $74,643,071)

       82,838,293  
    

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-17.88%

 

Invesco Private Government Fund,
0.01%(e)(f)(g)

    5,913,120        5,913,120  

Invesco Private Prime Fund, 0.11%(e)(f)(g)

    8,866,133        8,869,680  
    

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $14,782,800)

 

     14,782,800  
    

 

 

 

TOTAL INVESTMENTS IN SECURITIES-118.06%
(Cost $89,425,871)

       97,621,093  

OTHER ASSETS LESS LIABILITIES-(18.06)%

       (14,935,843
    

 

 

 

NET ASSETS-100.00%

     $ 82,685,250  
    

 

 

 

 

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

 

  37  

 

 

 

 


 

Invesco Dynamic Media ETF (PBS)–(continued)

April 30, 2021

 

 

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, 2021.

(d)

Restricted security. The value of this security at April 30, 2021 represented 2.61% of the Fund’s Net Assets.

(e)

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, 2021.

 

  Value
April 30, 2020
Purchases
at Cost
Proceeds
from Sales
Change in
Unrealized
Appreciation
Realized
Gain
Value
April 30, 2021
Dividend
Income
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class $ - $ 1,234,034 $  (1,131,011 ) $ - $ - $ 103,023 $ 15
Invesco Premier U.S. Government Money Portfolio, Institutional Class   105,640   702,371   (808,011 )   -   -   -   28
Investments Purchased with Cash Collateral from Securities on Loan:
Invesco Private Government Fund   4,547,956   43,029,443   (41,664,279 )   -   -   5,913,120   659 *

Invesco Private Prime Fund

  -   42,364,876   (33,495,598 )   -   402   8,869,680   2,661 *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$ 4,653,596 $ 87,330,724 $ (77,098,899 ) $ - $ 402 $ 14,885,823 $ 3,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

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.

 

(f)

The rate shown is the 7-day SEC standardized yield as of April 30, 2021.

(g)

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 2J.

 

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

 

  38  

 

 

 

 


 

Invesco Dynamic Networking ETF (PXQ)

April 30, 2021

 

 

Schedule of Investments(a)

 

        Shares              Value      

Common Stocks & Other Equity Interests-99.99%

 

  

Application Software-5.52%

    

Dynatrace, Inc.(b)

    22,681      $ 1,180,319  

Mimecast Ltd.(b)

    26,000        1,128,920  
    

 

 

 
       2,309,239  
    

 

 

 

Communications Equipment-29.80%

    

Arista Networks, Inc.(b)

    4,053        1,277,384  

Calix, Inc.(b)

    30,238        1,278,765  

Cisco Systems, Inc.

    45,729        2,328,063  

F5 Networks, Inc.(b)

    5,976        1,116,078  

Lumentum Holdings, Inc.(b)

    12,655        1,076,308  

NETGEAR, Inc.(b)

    28,385        1,056,206  

NetScout Systems, Inc.(b)

    39,797        1,042,482  

Plantronics, Inc.(b)

    27,366        1,094,366  

Radware Ltd. (Israel)(b)

    43,074        1,193,581  

Ubiquiti, Inc.

    3,534        1,008,356  
    

 

 

 
       12,471,589  
    

 

 

 

Consumer Electronics-3.00%

    

Garmin Ltd.

    9,132        1,253,276  
    

 

 

 

Electronic Components-7.56%

    

Amphenol Corp., Class A

    33,250        2,239,055  

II-VI Incorporated(b)(c)

    13,761        923,914  
    

 

 

 
       3,162,969