LOGO               

Invesco Annual Report to Shareholders

 

October 31, 2023

    

  ICLO    Invesco AAA CLO Floating Rate Note ETF
  PSR    Invesco Active U.S. Real Estate ETF
  IHYF    Invesco High Yield Bond Factor ETF
  HIYS    Invesco High Yield Select ETF
  PHDG    Invesco S&P 500® Downside Hedged ETF
  ISDB    Invesco Short Duration Bond ETF
  GTO    Invesco Total Return Bond ETF
  GSY    Invesco Ultra Short Duration ETF
  VRIG    Invesco Variable Rate Investment Grade ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      5  
Schedules of Investments   

Invesco AAA CLO Floating Rate Note ETF (ICLO)

     26  

Invesco Active U.S. Real Estate ETF (PSR)

     28  

Invesco High Yield Bond Factor ETF (IHYF)

     30  

Invesco High Yield Select ETF (HIYS)

     40  

Invesco S&P 500® Downside Hedged ETF (PHDG)

     45  

Invesco Short Duration Bond ETF (ISDB)

     51  

Invesco Total Return Bond ETF (GTO)

     56  

Invesco Ultra Short Duration ETF (GSY)

     73  

Invesco Variable Rate Investment Grade ETF (VRIG)

     80  
Statements of Assets and Liabilities      88  
Statements of Operations      92  
Statements of Changes in Net Assets      94  
Financial Highlights      98  
Notes to Financial Statements      107  
Report of Independent Registered Public Accounting Firm      131  
Fund Expenses      133  
Tax Information      135  
Trustees and Officers      136  

 

    2    

 

 

 

 


 

The Market Environment

 

 

Domestic Equity

At the start of the fiscal year, US equity markets rebounded, despite mixed data on the economy and corporate earnings. However, the US Federal Reserve’s (the Fed’s) message that rate hikes would continue until data showed inflation meaningfully declining, sent markets lower in December 2022. As energy prices declined, the rate of inflation slowed modestly in the fourth quarter of 2022. Corporate earnings generally met expectations, though companies provided cautious future guidance. With inflation still at multi-decade highs and little evidence of a slowing economy, the Fed raised its target rate by 0.75% in November and by 0.50% in December.1

US equities managed to deliver gains in the first quarter of 2023 despite significant volatility and a banking crisis. A January rally gave way to a February selloff as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the risk of a deeper than expected recession. In March, the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread sent investors to safe-haven assets, sparking a bond rally, particularly among securities at the short end of the yield curve. With instability in the banking sector, the Fed raised the federal funds rate by only 0.25% in February 2023 and again in March.1 The Fed’s actions to stabilize the banking system in March sent markets higher, so equities were surprisingly resilient despite the turmoil.

The US economy and equity markets remained resilient in the second quarter of 2023, as milder inflation data and better-than-expected corporate earnings supported equities, with most major indexes posting gains for the quarter and with some big tech names providing optimistic future guidance. Following the March banking crisis, markets stabilized in April, as corporate earnings season got underway, with many companies surprising consensus earnings and revenue estimates. Facing persistently strong employment data, the Fed raised the federal funds rate by 0.25% at its May meeting,1 but left rates unchanged at its June meeting, giving investors the long-awaited “pause” in rate hikes, which sent equities broadly higher.

Equity markets declined in the third quarter and into October 2023 as a resilient US economy complicated the Fed’s efforts to tame inflation. While inflation has slowed from its peak, the Consumer Price Index (CPI) rose by 0.2% in July, and the 12-month headline inflation rate rose to 3.2% from 3% in June.2 Due to the persistence of inflation, the Fed raised the federal funds rate in July by 0.25% again. The CPI data released in September was higher-than-expected and the overall US labor market remained tight with unemployment

near historic lows. At the same time, wages rose and consumers continued to spend, pushing the third quarter year-over-year Gross Domestic Product (GDP) to 4.9%, far above expectations.2 Despite the higher-than-expected GDP for the third quarter of 2023, the Fed held interest rates steady at its September and October meetings, but left open the possibility of another rate hike before the end of the calendar year.1

Despite higher rates and increased market volatility, US stocks for the fiscal year had positive returns of 10.69%, as measured by the S&P 500 Index.3

 

1 

Source: US Federal Reserve

2 

Source: US Bureau of Labor Statistics

3 

Source: Lipper Inc.

Fixed Income

The beginning of the fiscal year was headlined by the US Federal Reserve (the Fed) continuing its rapid tightening of monetary policy in an effort to combat inflation via higher interest rates, while simultaneously engineering a soft landing so as to not push the economy into a recession. The Fed aggressively raised its federal funds rate at the beginning of the fiscal year: a 0.75% hike in November 2022, its largest hike since 1994, a 0.50% hike in December and a 0.25% hike in January, to a target federal funds rate of 4.50% to 4.75%.1

A January 2023 rally gave way to a February selloff as higher-than-expected inflation, a tight labor market and solid economic growth indicated that the Fed’s monetary policy would remain tight for the foreseeable future, raising the risk of a deeper than expected recession. In March, significant volatility plagued fixed income markets as the failure of two US regional banks, Silicon Valley Bank and Signature Bank, prompted steep losses in the banking sector. The subsequent takeover of Credit Suisse and ongoing fear that bank troubles would spread pushed overall corporate spread premiums wider over the fiscal year. However, issues did not seem to be systemic, as policymakers responded swiftly which calmed markets. The Fed, aiming to further stabilize markets, continued course with its hawkish policy and announced two 0.25% hikes in March and May, resulting in a target federal funds rate of 5.00% to 5.25%.1 Markets stabilized due to milder inflation data and better-than-expected corporate earnings.

Through the second quarter of 2023, global economic growth remained resilient but bifurcated as emerging markets and Asian economies showed robust growth while developed western economies had sluggish yet positive growth. US labor markets maintained momentum with unemployment still at historic lows despite a slight uptick at the end of May. Inflation generally eased in developed economies, largely driven by moderation in the goods component of inflation. However, core

 

    3    

 

 

 

 


 

The Market Environment–(continued)

 

 

inflation remained more stubborn and led developed country central banks to continue tightening, showcased by another 0.25% hike by the Fed in July, increasing the target rate from 5.25% to 5.50%, its highest level since June 2006.1 While rates remained elevated across all maturities on the yield curve, the two-year Treasury rates increased from 3.45% to 4.85% during the fiscal year, while 10-year Treasury rates increased from 3.53% to 4.48%.2 At the end of the fiscal year, the yield curve remained inverted. Additionally, in August, US debt was downgraded by the Fitch credit rating agency from AAA to AA on the premise of expected fiscal deterioration over the next three years.3 Despite the higher-than-expected Gross Domestic Product for the third quarter, the Fed held interest rates steady at its September and October 2023 meetings, but left open the possibility of another rate hike before the end of the calendar year.1 As of the end of the fiscal year, we believe markets have priced in that the Fed is near the end or has finished its interest rate hiking cycle, with the expectation that the US is likely to avoid a substantial broad-based recession. We anticipate economic activity will remain relatively resilient. In the US, we believe rate hikes are ending and inflation will continue to fall significantly, albeit imperfectly. As we enter 2024, we expect a more positive growth outlook to unfold as the US economy recovers.

 

1 

Source: Federal Reserve of Economic Data

2 

Source: US Department of the Treasury

3 

Source: Fitch Ratings

 

A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. Not Rated indicates the debtor was not rated and should not be interpreted as indicating low quality. For more information on S&P Global Ratings’ rating methodology, please visit spglobal.com and select ‘Understanding Credit Ratings’ under ‘AboutRatings’ on the homepage. For more information on Moody’s rating methodology, please visit ratings.moodys.com and select ‘RatingMethodologies’ on the homepage.

 

    4    

 

 

 

 


 

 

ICLO    Management’s Discussion of Fund Performance
   Invesco AAA CLO Floating Rate Note ETF (ICLO)

 

The Invesco AAA CLO Floating Rate Note ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek current income and capital preservation. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in floating rate note securities issued by collateralized loan obligations (“CLOs”) that are rated AAA (or equivalent by a nationally recognized statistical rating organization (“NRSRO”)) at the time of purchase. The Fund may invest in CLO securities of any maturity. A CLO is a trust that issues fixed- or floating-rate debt securities that are collateralized by a pool of loans, which may include domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The underlying loans in a CLO are selected by the CLO’s manager. The Fund may purchase CLO securities both in the primary markets (e.g. purchased directly from the issuer) and secondary markets.

The Fund may invest in CLO securities that are unrated, in which case the Fund’s sub-adviser, Invesco Senior Secured Management, Inc. (the “Sub-Adviser”), may internally assign ratings to certain of those securities, after assessing their credit quality, in categories similar to those of NRSROs. In such instances, unrated CLO securities will be counted toward the 80% investment strategy if determined to be equivalent to an AAA rating by the Sub-Adviser.

The Fund may invest up to 15% of its net assets in below AAA- rated CLO securities with a minimum rating of AA at the time of purchase, or if unrated, determined to be of comparable credit quality by the Sub-Adviser. The Fund will not invest in CLO securities that have a rating that is below AA (or equivalent by an NRSRO) at the time of purchase.

The Fund may invest up to 20% of its net assets in CLO securities that are denominated in foreign currencies.

The Fund will primarily invest in CLOs whose underlying loan collateral is almost entirely comprised of broadly syndicated loans (i.e., loans with offering sizes that are typically greater than $250 million). The Fund may, however, invest up to 15% of its net assets in “middle-market CLOs,” which are CLOs whose underlying loan collateral is substantially comprised of middle market loans (i.e., loans with offering sizes generally below $250 million).

The Fund will limit its investment in fixed-rate CLO securities to a maximum of 15% of its net assets at the time of purchase.

In selecting securities for the Fund’s portfolio, the Sub-Adviser utilizes a combination of “top-down”, macroeconomic-driven investment approach and a fundamental “bottom-up” approach, which leverages the Sub-Adviser’s experience as a frequent CLO issuer and manager as well as experience in the loan market in managing various retail and institutional loan funds.

During the fiscal period from the Fund’s inception (December 9, 2022, the first day of trading on the exchange) through October 31, 2023, on a market price basis, the Fund returned 7.25%. On a net asset value (“NAV”) basis, the Fund returned 7.51%. During the same time period, the JP Morgan CLOIE AAA Total Return Index (USD) (the “Benchmark Index”) returned 7.49%. The majority of the Fund’s outperformance, on an NAV basis, relative to the Benchmark Index can be attributed to the Fund’s security selection.

Positions that contributed most significantly to the Fund’s absolute return included Rad CLO 5 Ltd., 7.36% coupon, due 07/24/2032 (portfolio average weight of 5.97%) and Cedar Funding XI CLO Ltd., 6.72% coupon, due 05/29/2032 (portfolio average weight of 5.12%). Positions that detracted most significantly from the Fund’s absolute return included Elmwood CLO IX Ltd., 6.75% coupon; due 04/22/2035 (no longer held at fiscal year-end) and Eaton Vance CLO Ltd., 6.76% coupon; 04/15/2031 (no longer held at fiscal year-end).

 

Duration Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Maturing in 6-10 Years      49.76  
Maturing in 11-15 Years      48.83  
Money Market Funds Plus Other Assets Less Liabilities      1.41  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Rad CLO 5 Ltd., Series 2019-5A, Class BR, 7.36%, 07/24/2032      5.95  
Palmer Square CLO Ltd., Series 2015-1A, Class A1A4, 6.77%, 05/21/2034      5.38  
Elmwood CLO IX Ltd., Series 2021-2A, Class A, 6.81%, 07/20/2034      4.92  
AGL CLO 14 Ltd., Series 2021-14A, Class A, 6.82%, 12/02/2034      4.49  
Signal Peak CLO 1 Ltd., Series 2014-1A, Class AR3, 6.82%, 04/17/2034      4.49  
Aimco CLO 14 Ltd., Series 2021-14A, Class A, 6.67%, 04/20/2034      4.48  
Regatta XX Funding Ltd., Series 2021-2A, Class A, 6.82%, 10/15/2034      4.04  
Madison Park Funding XXXVII Ltd., Series 2019-37A, Class AR, 6.73%, 07/15/2033      4.02  
Buckhorn Park CLO Ltd., Series 2019-1A, Class AR, 6.78%, 07/18/2034      3.97  
RR 1 LLC, Series 2017-1A, Class A1AB, 6.81%, 07/15/2035      3.93  
Total      45.67  

 

*

Excluding money market fund holdings.

 

 

  5  

 


 

Invesco AAA CLO Floating Rate Note ETF (ICLO) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    Fund Inception  
Index   Cumulative  
JP Morgan CLOIE AAA Total Return Index (USD)     7.49
Fund  
NAV Return     7.51  
Market Price Return     7.25  

 

Fund Inception: December 9, 2022

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, as supplemented to date, the Fund’s expense ratio of 0.26% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. Effective June 28, 2023, Invesco Capital Management LLC (the “Adviser”) has agreed to waive 100% of its management fee for the Fund through December 31, 2023. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the index stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The index does 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 Index and Fund Performance History:

 

-

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

 

 

  6  

 


 

 

PSR    Management’s Discussion of Fund Performance
   Invesco Active U.S. Real Estate ETF (PSR)

 

The Invesco Active U.S. Real Estate ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to achieve high total return through growth of capital and current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in securities of companies that are principally engaged in the U.S. real estate industry and included within the FTSE NAREIT All Equity REITs Index (the “Benchmark Index”). The Fund considers a company to be principally engaged in the U.S. real estate industry if it: (i) derives 50% of its revenues or profits from the ownership, leasing, management, construction, financing or sale of U.S. real estate; or (ii) has at least 50% of the value of its assets invested in U.S. real estate. The Fund plans to invest principally in equity real estate investment trusts (“REITs”). Equity REITs pool investors’ funds for investments primarily in real estate properties or real estate-related loans (such as mortgages). The Fund also may invest in real estate operating companies (“REOCs”), as well as securities of other companies principally engaged in the U.S. real estate industry. REOCs are similar to REITs, except that REOCs reinvest their earnings into the business, rather than distributing them to unitholders like REITs.

The Fund structures and selects its investments primarily from a universe of securities that are included within the Benchamrk Index at the time of purchase. In constructing the portfolio, Invesco Advisers, Inc., the Fund’s sub-adviser (the “Sub Adviser”), analyzes quantitative and statistical metrics to identify attractively priced securities.

As part of the Fund’s investment process to implement its investment strategy in pursuit of its investment objective, the Sub-Adviser may also consider both qualitative and quantitative environmental, social and governance (“ESG”) factors it believes to be material to understanding an issuer’s fundamentals, assess whether any ESG factors pose a material financial risk or opportunity to the issuer and determine whether such risks are appropriately reflected in the issuer’s valuation. This analysis may involve the use of third-party research as well as proprietary research. Consideration of ESG factors is just one component of the Sub-Adviser’s assessment of issuers eligible for investment and not necessarily determinative to an investment decision. Therefore, the Sub- Adviser may still invest in securities of issuers that may be viewed as having a high ESG risk profile. The ESG factors considered by the Sub-Adviser may change over time, one or more factors may not be relevant with respect to all issuers eligible for investment and ESG considerations may not be applied to all issuers or investments in the Fund.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned (9.55)%. On a net asset value (“NAV”) basis, the Fund returned (9.59)%. During the same time period, the Benchmark Index returned (7.89)%.

Relative to the Benchmark Index, the Fund was most overweight in the telecom tower REITs sub-industry and most underweight in the office REITs sub-industry during the fiscal year ended October 31, 2023. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s security selection in the industrial REITs and health care REITs sub-industries, respectively.

For the fiscal year ended October 31, 2023, the data center REITs sub-industry contributed most significantly to the Fund’s return, followed by the diversified real estate activities sub- industry. During the period, telecom tower REITs detracted most from the Fund’s return, followed by the self-storage REITs sub-industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Digital Realty Trust, Inc., a data center REITs company (portfolio average weight of 4.54%), and Equinix, Inc., a data center REITs company (portfolio average weight of 4.53%). Positions that detracted most significantly from the Fund’s return included Crown Castle Inc., a specialized REITs company (portfolio average weight of 5.22%), and Industrial Logistics Properties Trust, an industrial REITs company (no longer held at fiscal year-end).

 

Property Type and Sub-Industry Breakdown
(% of the Fund’s  Net Assets)
as of October 31, 2023
 
Infrastructure REITs      14.70  
Industrial      14.19  
Data Centers      10.58  
Apartments      9.20  
Health Care      8.54  
Shopping Centers      7.95  
Self Storage      7.07  
Free Standing      5.56  
Gaming REITs      4.07  
Manufactured Homes      3.84  
Office      3.38  
Timber REITs      2.94  
Lodging Resorts      2.60  
Single Family Homes      2.33  
Diversified      1.25  
Specialty      0.95  
Regional Malls      0.81  
Money Market Funds Plus Other Assets Less Liabilities      0.04  

 

 

  7  

 


 

Invesco Active U.S. Real Estate ETF (PSR) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Digital Realty Trust, Inc.      5.34  
Equinix, Inc.      5.24  
American Tower Corp.      5.12  
SBA Communications Corp., Class A      4.93  
Crown Castle, Inc.      4.65  
EastGroup Properties, Inc.      2.12  
STAG Industrial, Inc.      2.07  
Terreno Realty Corp.      2.06  
Gaming and Leisure Properties, Inc.      2.05  
Americold Realty Trust, Inc.      2.05  
Total      35.63  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
   

5 Years

Cumulative

    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
FTSE Nareit All Equity REITs Index     (7.89 )%      2.76     8.51     2.69     14.22     5.38     68.91       12.62     491.02
Fund                    
NAV Return     (9.59     2.10       6.43       2.24       11.72       5.08       64.07         11.90       436.93  
Market Price Return     (9.55     2.14       6.57       2.29       12.00       5.08       64.12         11.96       440.77  

 

 

  8  

 


 

Invesco Active U.S. Real Estate ETF (PSR) (continued)

 

Fund Inception: November 20, 2008

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.35% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the index stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The index does 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 Index and Fund Performance History:

 

-

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

 

 

  9  

 


 

 

IHYF    Management’s Discussion of Fund Performance
   Invesco High Yield Bond Factor ETF (IHYF)

 

The Invesco High Yield Bond Factor ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks to provide total return. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in high-yield, below-investment grade, fixed-income securities (also referred to as “junk” bonds), and in derivatives and other instruments that have economic characteristics similar to such securities.

Invesco Advisers, Inc., the Fund’s sub-adviser, selects securities for the Fund’s portfolio by utilizing a factor-based strategy that involves systematically targeting securities exhibiting quantifiable issuer characteristics (or “factors”) that the Sub-Adviser believes will have higher returns than other fixed income securities with comparable characteristics over market cycles. Securities no longer exhibiting these factors will typically be sold. In practice, this means the Fund may have higher allocations to: value bonds (bonds that have high spreads relative to other securities of similar credit quality and/or sector); low volatility bonds (bonds that have lower levels of price volatility); and high carry bonds (bonds with higher absolute yield or spread). The portfolio managers expect to include additional factors or modify the factors used to build the Fund’s portfolio as they deem appropriate.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 6.50%. On a net asset value (“NAV”) basis, the Fund returned 6.47%. During the same time period, the Bloomberg U.S. Corporate High Yield 2% Issuer Cap Index (the “Benchmark Index”) returned 6.23%.

The Fund’s outperformance relative to the Benchmark Index during the fiscal year ended October 31, 2023, was driven largely by the Fund’s allocation to the utilities sector. Security selection in and allocation to the information technology and industrials sectors, as well as allocation to the consumer discretionary sector, contributed to the Fund’s return during the period. The communications services sector detracted from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s absolute return for the fiscal year ended October 31, 2023 included the EnfraGen Energia Sur, S.A., 5.38% coupon, due 12/30/2030 (portfolio average weight of 0.42%) and the Markit CDX North America High Yield Index Credit Default Swap Agreement (portfolio average weight of 0.03%). Positions that detracted most significantly from the Fund’s absolute return included CSC Holdings LLC, 4.63% coupon; due 12/01/2030 (portfolio average weight of 0.26%) and QVC, Inc., 4.75% coupon; due 02/15/2027 (portfolio average weight of 0.20%).

Security Type Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      97.63  
U.S. Treasury Securities      0.24  
Money Market Funds Plus Other Assets Less Liabilities      2.13  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
TransDigm, Inc., 6.25%, 03/15/2026      1.35  
Uber Technologies, Inc.,
8.00%, 11/01/2026
     0.73  
AECOM, 5.13%, 03/15/2027      0.68  
Neptune Bidco US, Inc.,
9.29%, 04/15/2029
     0.65  
Nexstar Media, Inc., 5.63%, 07/15/2027      0.65  
MPT Operating Partnership L.P./MPT Finance Corp., 5.00%, 10/15/2027      0.64  
CCO Holdings LLC/CCO Holdings Capital Corp., 5.13%, 05/01/2027      0.63  
Allied Universal Holdco LLC/Allied Universal Finance Corp.,
6.63%, 07/15/2026
     0.58  
Delta Air Lines, Inc., 7.38%, 01/15/2026      0.58  
Summit Midstream Holdings LLC/Summit Midstream Finance Corp.,
9.00%, 10/15/2026
     0.55  
Total      7.04  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

Invesco High Yield Bond Factor ETF (IHYF) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year           Fund Inception  
Index         Average
Annualized
    Cumulative  
Bloomberg U.S. Corporate High Yield 2% Issuer Cap Index     6.23       (0.24 )%      (0.68 )% 
Fund        
NAV Return     6.47         (0.67     (1.94
Market Price Return     6.50         (0.68     (1.96

 

Fund Inception: December 2, 2020

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.39% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  11  

 


 

 

HIYS    Management’s Discussion of Fund Performance
   Invesco High Yield Select ETF (HIYS)

 

The Invesco High Yield Select ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks to provide current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in relatively higher quality below investment grade fixed-income securities (commonly referred to as “high yield securities” or “junk bonds” with more speculative characteristics than investment grade securities), as well as in derivatives and other instruments that have economic characteristics similar to such securities. The Fund considers such higher quality securities as those rated between B- and BB+ (or the equivalent) by a nationally recognized statistical rating organization (“NRSRO”) or, if unrated, deemed to be of comparable quality by Invesco Advisers, Inc. (the “Sub-Adviser”). By comparison, investment grade securities are: (i) securities rated at least BBB- (or the equivalent) by a NRSRO, or (ii) unrated securities determined by the Sub-Adviser to be of comparable quality. If two or more NRSROs have assigned different ratings to a security, the Sub-Adviser uses the highest rating assigned. Up to 10% of the Fund’s net assets may be securities rated below B- (or the equivalent) in the event that a security selected by the Fund experiences a rating downgrade.

The Sub-Adviser selects securities for the Fund’s portfolio using a bottom-up evaluation process based on a fundamental analysis, a quantitative analysis, and a relative value assessment. The fundamental analysis considers the competitive landscape, risks to an issuer’s business model, as well as the overall competence of the management team. The quantitative analysis focuses on the quality of an issuer’s assets, its balance sheet, and the ability to generate free cash flow going forward. The relative value assessment compares pricing to comparable issuers and securities and assesses a security’s relative liquidity. The Sub-Adviser supplements its bottom-up fundamental analysis with an ongoing top-down analysis of sector and macro-economic trends, such as changes in interest rates.

The portfolio managers attempt to control the Fund’s risk by limiting its investment in any one security to 5% of the Fund’s net assets, and by diversifying the portfolio’s holdings over a number of different industries.

Decisions to purchase or sell securities are determined by the relative value considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Fund’s macro risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Fund’s exposure to a particular security, issuer or industry, a change in an issuer’s credit quality, or general liquidity needs of the Fund. The credit research process utilized by the Sub-Adviser to implement the Fund’s investment strategy in pursuit of the

Fund’s investment objective considers factors that may include, but are not limited to, an issuer’s operations, capital structure and environmental, social and governance (“ESG”) considerations. Credit quality analysis for certain issuers therefore may consider whether any ESG factors pose a material financial risk or opportunity to an issuer. The Sub- Adviser may determine that ESG considerations are not material to certain issuers or types of investments held by the Fund. In addition, not all issuers or Fund investments may undergo a credit quality analysis that considers ESG factors, and not all investments held by the Fund will rate strongly on ESG criteria.

During the fiscal period from the Fund’s inception (December 9, 2022, the first day of trading on the exchange) through October 31, 2023, on a market price basis, the Fund returned 2.61%. On a net asset value (“NAV”) basis, the Fund returned 2.41%. During the same time period, the Bloomberg US Corporate High Yield Ba/B 2% Issuer Cap Total Return Index (the “Benchmark Index”) returned 2.73%.

The Fund’s underperformance relative to the Benchmark Index during the period was primarily driven by the Fund’s security selection in the consumer discretionary and consumer staples sectors, as well as exposure to the industrials sector.

Positions that contributed most significantly to the Fund’s return for the fiscal period ended October 31, 2023, included the Carnival Holdings Bermuda Ltd., 10.38% coupon, due 05/01/2028 (portfolio average weight of 1.65%), and Aethon United BR L.P./Aethon United Finance Corp., 8.25% coupon, due 02/15/2026 (portfolio average weight of 1.64%). Positions that detracted most significantly from the Fund’s return included Level 3 Financing, Inc., 3.75% coupon; due 07/15/2029 (portfolio average weight of 0.34%), and Bausch Health Cos., Inc., 4.88% coupon; due 06/01/2028 (portfolio average weight of 0.25%).

 

Security Type Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      88.80  
Non-U.S. Dollar Denominated Bonds & Notes      5.63  
Asset-Backed Securities      1.04  
Preferred Stocks      0.50  
Money Market Funds Plus Other Assets Less Liabilities      4.03  

 

 

  12  

 


 

Invesco High Yield Select ETF (HIYS) (continued)

 

Top Ten Fund Holdings* (% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
GTCR W-2 Merger Sub LLC, 7.50%, 01/15/2031      2.05  
Iliad Holding S.A.S., 6.50%, 10/15/2026      1.94  
Allison Transmission, Inc., 3.75%, 01/30/2031      1.94  
Altice France S.A., 8.13%, 02/01/2027      1.76  
Carnival Holdings Bermuda Ltd., 10.38%, 05/01/2028      1.68  
Service Properties Trust, 5.50%, 12/15/2027      1.66  
Melco Resorts Finance Ltd., 5.38%, 12/04/2029      1.66  
Aethon United BR L.P./Aethon United Finance Corp., 8.25%, 02/15/2026      1.62  
Tenet Healthcare Corp., 4.88%, 01/01/2026      1.55  
Fortress Transportation and Infrastructure Investors LLC, 5.50%, 05/01/2028      1.54  
Total      17.40  

 

*

Excluding money market fund holdings.

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    Fund Inception  
Index   Cumulative  
Bloomberg US Corporate High Yield Ba/B 2% Issuer Cap Total Return Index (USD)     2.73
Fund  
NAV Return     2.41  
Market Price Return     2.61  

 

 

  13  

 


 

Invesco High Yield Select ETF (HIYS) (continued)

 

Fund Inception: December 9, 2022

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.48% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  14  

 


 

 

PHDG    Management’s Discussion of Fund Performance
   Invesco S&P 500® Downside Hedged ETF (PHDG)

 

The Invesco S&P 500® Downside Hedged ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns. The Fund seeks to achieve its investment objective by allocating its assets generally among the components of the S&P 500® Dynamic VEQTOR Index (the “Benchmark Index”). The Benchmark Index is composed of up to three types of components: (i) an equity component, represented by the S&P 500® Index; (ii) a volatility hedge component, represented by the S&P 500® VIX Short-Term Futures Index (“VIX Futures Index”); and (iii) cash.

The Benchmark Index is designed to measure the performance of the broad equity markets with an implied volatility hedge. “Implied volatility” is a measure of the expected volatility of the S&P 500® Index that is reflected in the value of the Chicago Board Options Exchange (“CBOE”) Volatility Index (“VIX Index”). Known as the “fear gauge” of the broader U.S. equities market, the VIX Index measures market volatility in large capitalization U.S. stocks and is calculated based on the prices of certain put and call options on the S&P 500® Index.

The VIX Futures Index is designed to measure the returns from long positions in futures contracts on the VIX Index. The Benchmark Index’s allocation to the VIX Futures Index is designed to serve as a volatility hedge, as volatility historically tends to correlate negatively to the performance of the U.S. equity markets (i.e., rapid declines in the performance of U.S. equity markets generally are associated with high volatility in such markets).

Accordingly, pursuant to its methodology, the Benchmark Index allocates a greater portion of its weight to its equity component (the S&P 500® Index) during periods of low volatility, and a greater portion of its weight to its volatility hedge component (the VIX Futures Index) during periods of increased volatility.

Under normal circumstances, the Fund will invest its portfolio in a combination of assets that are similar, but not necessarily identical, to that of the Benchmark Index. The Fund’s portfolio is composed of: (i) an equity sleeve, consisting of the component securities of the S&P 500® Index, (ii) a volatility hedge sleeve, consisting of VIX Index-Related Instruments (defined below), which include futures contracts on the VIX Index, (iii) futures contracts that reference the S&P 500® Index (“S&P 500 Futures”); and (iv) various liquid investments, including short-term U.S. Treasury Securities, money market instruments, cash and cash equivalents. With respect to its equity sleeve, the Fund utilizes a “passive” investment strategy that seeks to track the performance of the S&P 500® Index as closely as possible. To do so, the Fund employs a “full replication” methodology; “full replication” means that the Fund generally invests the portion of its portfolio allocated to its equity sleeve in all of the component securities of the S&P 500® Index in proportion to their weightings

in the S&P 500® Index. Although the Fund employs a passive strategy with respect to its equity sleeve, Invesco Capital Management LLC (the “Adviser”), the Fund’s investment adviser, will actively manage the Fund’s investments in VIX Index-Related Instruments, S&P 500 Futures, short-term instruments and cash, as well as the Fund’s allocation of its assets among the equity and volatility hedge sleeves. Such allocations may not correspond to the Benchmark Index’s allocations.

Instead, the Adviser will seek to obtain returns for the Fund that exceed the Benchmark Index by providing the Fund with equity or volatility hedge sleeve allocations that are higher or lower than those of the Benchmark Index at any time given the market conditions at that time.

In addition to its investments in futures contracts on the VIX Index, the Fund may invest in U.S.-listed exchange-traded funds (“ETFs”) and exchange-traded notes (“ETNs”) that provide exposure to the VIX Index (such ETFs and ETNs, along with futures contracts on the VIX Index, are collectively the “VIX Index-Related Instruments”). The Fund may invest in the short- term instruments and cash to provide liquidity or to protect the Fund during periods of heightened volatility when the Adviser believes that it is in the best interest of the Fund to do so.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned (9.19)%. On a net asset value (“NAV”) basis, the Fund returned (9.09)%. During the same time period, the Benchmark Index returned (8.45)%. The Fund’s underperformance on a NAV basis, relative to the Benchmark Index, was primarily due to fees and transaction costs incurred by the Fund during the fiscal year.

During this same time period, the S&P 500® Index returned 10.14% and the U.S. 3-Month Treasury Bill Index (the “T-Bill 3-Month Index”) returned 4.88% (these indexes, collectively with the Benchmark Index, are referred to as the “Indexes”). The Indexes were selected for their recognition in the marketplace.

The S&P 500® Index was selected because its performance comparison is a useful measure for investors as a broad representation of the equity market. The T-Bill 3-Month Index was selected because its performance comparison is a useful measure for investors as a broad representation of the short-term U.S. fixed income market.

The Fund’s performance, on a NAV basis, differed from the return of the S&P 500® Index during the period primarily because of the Fund’s consistent allocation to VIX futures, which generally have an inverse correlation to the S&P 500® Index. The Fund’s performance, on a NAV basis, differed from the return of the T-Bill 3-Month Index during the period primarily because of the Fund’s consistent allocation to VIX Futures, which underperformed the short-term U.S. fixed income market during the fiscal year.

 

 

  15  

 


 

Invesco S&P 500® Downside Hedged ETF (PHDG) (continued)

 

For the fiscal year ended October 31, 2023, the information technology sector contributed most significantly to the Fund’s

return, followed by the communication services sector. The Fund’s VIX futures allocations and exposure to the financials sector were the largest detractors from the Fund’s return.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included Nvidia Corp. (portfolio average weight of 1.64%) and Microsoft Corp. (portfolio average weight of 4.62%). The positions that detracted most significantly from the Fund’s return were the CBOE VIX (CBF) Jun 23, a VIX futures contract (portfolio average weight of 0.71%), and CBOE VIX (CBF) Jul 23, a VIX futures contract (portfolio average weight of 0.52%).

 

Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Information Technology      23.95  
Health Care      11.22  
Financials      10.89  
Consumer Discretionary      9.01  
Communication Services      7.44  
Industrials      7.11  
Consumer Staples      5.66  
Energy      3.87  
Sector Types Each Less Than 3%      6.22  
Money Market Funds Plus Other Assets Less Liabilities      14.63  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Microsoft Corp.      6.10  
Apple, Inc.      6.10  
Amazon.com, Inc.      2.94  
NVIDIA Corp.      2.45  
Alphabet, Inc., Class A      1.79  
Meta Platforms, Inc., Class A      1.63  
Alphabet, Inc., Class C      1.54  
Berkshire Hathaway, Inc., Class B      1.51  
Tesla, Inc.      1.35  
UnitedHealth Group, Inc.      1.21  
Total      26.62  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco S&P 500® Downside Hedged ETF (PHDG) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
S&P 500® Dynamic VEQTOR Index     (8.45 )%      0.48     1.45     4.02     21.76     3.96     47.39       4.59     63.04
S&P 500® Index     10.14       10.36       34.41       11.01       68.59       11.18       188.47         12.61       265.10  
U.S. 3 Month Treasury Bill Index     4.88       2.06       6.31       1.79       9.29       1.18       12.45         1.09       12.51  
Fund                    
NAV Return     (9.09     (0.13     (0.40     3.61       19.38       3.41       39.84         3.94       52.41  
Market Price Return     (9.19     (0.18     (0.55     3.66       19.71       3.39       39.52         3.94       52.44  

 

Fund Inception: December 6, 2012

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2025. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.44% (0.39% after fee waiver) includes the unitary management fee of 0.39% and acquired fund fees and expenses of 0.05%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  17  

 


 

 

ISDB    Management’s Discussion of Fund Performance
   Invesco Short Duration Bond ETF (ISDB)

 

The Invesco Short Duration Bond ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek total return, comprised of income and capital appreciation. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in fixed-income securities, and in derivatives and other instruments that have economic characteristics similar to such securities.

The fixed-income investments in which the Fund may invest include corporate bonds, government bonds, including U.S. Treasury and agency securities, and mortgage-backed and asset- backed securities, including collateralized mortgage obligations (“CMOs”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). The Fund will attempt to maintain a dollar-weighted average portfolio maturity and duration between one and three years.

During the fiscal period from the Fund’s inception (December 9, 2022, the first day of trading on the exchange) through October 31, 2023, on a market price basis, the Fund returned 2.39%. On a net asset value (“NAV”) basis, the Fund returned 2.47%. During the same time period, the Bloomberg US Government and Credit 1-3 Year Index (the “Benchmark Index”) returned 2.27%.

The Fund’s outformance relative to the Benchmark Index during the period was driven largely by the Fund’s allocation to the financials sector, as well as the Fund’s allocation to the energy and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s absolute return for the fiscal period ended October 31, 2023, included the Sasol Financing USA LLC, 5.88% coupon, due 03/27/2024 (portfolio average weight of 2.03%), and NatWest Group PLC, 7.47% coupon, due 11/10/2026 (portfolio average weight of 2.15%). Positions that detracted most significantly from the Fund’s absolute return included Ford Motor Credit Co. LLC, 8.28% coupon; due 03/06/2026 (portfolio average weight of 2.07%), and OPEC Fund for International Development, 4.50% coupon; due 01/26/2026 (no longer held at fiscal year-end).

Security Type Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      88.82  
Asset-Backed Securities      6.94  
U.S. Treasury Securities      2.14  
Preferred Stocks      0.80  
Agency Credit Risk Transfer Notes      0.74  
Money Market Funds Plus Other Assets Less Liabilities      0.56  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Morgan Stanley Bank N.A., 5.88%, 10/30/2026      2.56  
NatWest Group PLC, 7.47%, 11/10/2026      2.08  
Barclays PLC, 7.33%, 11/02/2026      2.07  
Ford Motor Credit Co. LLC, 8.30%, 03/06/2026      2.07  
UBS AG, 5.80%, 09/11/2025      2.04  
Sasol Financing USA LLC, 5.88%, 03/27/2024      2.03  
Serbia International Bond, 6.25%, 05/26/2028      2.00  
Energy Transfer L.P., 4.50%, 04/15/2024      1.96  
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.50%, 07/15/2025      1.53  
Mercedes-Benz Finance North America LLC, 5.38%, 08/01/2025      1.53  
Total      19.87  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco Short Duration Bond ETF (ISDB) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    Fund Inception  
Index   Cumulative  
Bloomberg US Government and Credit 1-3 Year Index     2.27
Fund  
NAV Return     2.47  
Market Price Return     2.39  

 

Fund Inception: December 9, 2022

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information. According to the Fund’s current prospectus, as supplemented to date, the Fund’s expense ratio of 0.35% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recent month-end performance numbers.

Performance results for the index stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The index does 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 Index and Fund Performance History:

 

-

Cumulative Inception returns for the Fund and index are based on the inception date of the Fund.

 

 

  19  

 


 

 

GTO    Management’s Discussion of Fund Performance
   Invesco Total Return Bond ETF (GTO)

 

The Invesco Total Return Bond ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek maximum total return, comprised of income and capital appreciation. The Fund will normally invest in a portfolio of fixed income instruments of varying maturities and of any credit quality. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income instruments, which may be represented by certain derivative instruments as discussed below, and also may include ETFs and closed-end funds (“CEFs”) that invest substantially all of their assets in fixed income instruments (including ETFs and CEFs affiliated with the Fund). The fixed income instruments in which the Fund will invest include corporate debt securities of U.S. and non-U.S. issuers, including corporate bonds, and other similar instruments, such as Treasury securities, collateralized loan obligations (“CLOs”), mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”), issued by various U.S. and non-U.S. public- or private-sector entities, and municipal securities, which are debt securities issued by states or local governments and their agencies, authorities and other government sponsored enterprises.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 1.90%. On a net asset value (“NAV”) basis, the Fund returned 1.69%. During this same time period, the Bloomberg U.S. Aggregate Bond Index (the “Benchmark Index”) returned 0.36%.

The Fund’s outperformance relative to the Benchmark Index during the period was primarily due to the Fund’s allocation to the utilities sector and security selection in the communication services sector.

For the fiscal year ended October 31, 2023, from an industry perspective, exposure to electric utilities was the largest contributor to the Fund’s return, followed by oil, gas & consumable fuels. No industries detracted from the Fund’s performance during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included BX Trust, 6.30% coupon; due 10/15/2036 (portfolio average weight of 0.94%), and BX Commercial Mortgage Trust, 7.10% coupon; due 09/15/2036 (portfolio average weight of 0.81%). Positions that detracted most significantly from the Fund’s return included U.S. Treasury Bonds, 3.63% coupon; due 05/15/2053 (portfolio average weight of 5.35%), and U.S. Treasury Notes, 3.88% coupon; due 8/15/2033 (portfolio average weight of 4.41%).

Asset Group
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      51.75  
U.S. Government Sponsored Agency Mortgage-Backed Securities      20.82  
Asset-Backed Securities      16.95  
U.S. Treasury Securities      15.69  
Agency Credit Risk Transfer Notes      0.66  
Preferred Stocks      0.46  
U.S. Government Sponsored Agency Securities      0.24  
Municipal Obligations      0.19  
Exchange-Traded Funds      0.05  
Non-U.S. Dollar Denominated Bonds & Notes      0.05  
Common Stocks & Other Equity Interests      0.00  
Options Purchased      0.04  
Money Market Funds Plus Other Assets Less Liabilities      (6.90)  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
U.S. Treasury Bonds, 3.63%, 05/15/2053      5.04  
U.S. Treasury Notes, 4.88%, 10/31/2028      5.03  
U.S. Treasury Notes, 3.88%, 08/15/2033      4.20  
Uniform Mortgage-Backed Securities, TBA, 5.00%, 11/01/2053      3.86  
Uniform Mortgage-Backed Securities, TBA, 5.50%, 11/01/2053      2.80  
Government National Mortgage Association, TBA, 4.50%, 11/01/2053      1.84  
Uniform Mortgage-Backed Securities, TBA, 3.50%, 11/01/2053      1.80  
Government National Mortgage Association, TBA, 5.50%, 11/01/2053      1.52  
Uniform Mortgage-Backed Securities, TBA, 2.50%, 11/01/2053      1.31  
BX Trust, Series 2021-LGCY, Class B, 6.30%, 10/15/2036      0.95  
Total      28.35  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco Total Return Bond ETF (GTO) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Bloomberg U.S. Aggregate Bond Index     0.36     (5.57 )%      (15.79 )%      (0.06 )%      (0.28 )%        0.17     1.32
Fund                
NAV Return     1.69       (5.48     (15.55     0.62       3.15         1.70       13.93  
Market Price Return     1.90       (5.46     (15.49     0.62       3.14         1.71       13.98  

 

Guggenheim Total Return Bond ETF (the “Predecessor Fund”) Inception: February 10, 2016

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, as supplemented to date, the Fund’s net expense ratio of 0.25% is expressed as a unitary management fee of 0.50%, to cover operating expenses and expenses incurred in connection with managing the portfolio, and a waiver of 0.25%. Effective June 28, 2023, Invesco Capital Management LLC (the “Adviser”) has agreed to waive a portion of its unitary management fee for the Fund through August 31, 2025 such that after giving effect to such waiver, the net unitary management fee will be 0.25%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the index stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The index does 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 Index and Fund Performance History:

 

-

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

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  21  

 


 

 

GSY    Management’s Discussion of Fund Performance
   Invesco Ultra Short Duration ETF (GSY)

 

The Invesco Ultra Short Duration ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek maximum current income, consistent with preservation of capital and daily liquidity. The Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities and in ETFs and closed-end funds that invest substantially all of their assets in fixed income securities. The Fund uses a low duration strategy to seek to outperform the ICE BofA US Treasury Bill Index (the “Benchmark Index”) in addition to providing returns in excess of those available in U.S. Treasury bills, government repurchase agreements, and money market funds, while seeking to provide preservation of capital and daily liquidity.

The Fund expects, under normal circumstances, to hold a diversified portfolio of fixed income instruments of varying maturities, but that have an average duration of less than one year.

The Fund is primarily invested in corporate bonds, commercial paper and asset-backed securities. The Fund’s high allocation to floating rate securities reduces interest rate risk while commercial paper helps the Fund manage its liquidity needs. The Fund’s focus on high-quality short maturity holdings helps the Fund manage credit risk. The Fund continues to maintain an average effective duration below one year. The portfolio management team believes the Fund is well positioned for interest rate volatility and broader financial market sell-offs overall and relative to other conservative ultra-short fixed income funds. The Fund’s significant holdings in high quality investment grade assets and money market securities continue to help reduce drawdown risks, while preserving capital and maintaining a competitive yield.

For the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 5.42%. On a net asset value (“NAV”) basis, the Fund returned 5.40%. During the same time period, the Benchmark Index returned 4.83%.

The Fund’s outperformance relative to the Benchmark Index during the year was primarily due to the Fund maintaining an overweight position in short maturity investment grade credit securities.

Allocation to banks and insurance industries were positive contributors to the Fund’s performance relative to the Benchmark Index during the fiscal year ended October 31, 2023. Additionally, the Fund’s performance during the period was positively impacted by its overweight allocation to the capital markets, automobiles, and oil, gas & consumable fuels industries. No industries detracted from the Fund’s performance during the period.

Positions that contributed most significantly to the Fund’s return during the fiscal year ended October 31, 2023, included Golub Capital Partners CLO, 7.10% coupon (portfolio average weight of 0.57%), and Golub Capital Partners CLO, 7.33 % coupon,

(portfolio average weight of 0.52%). Positions that detracted most significantly from the Fund’s return included Capital One Financial Corp., 6.02% coupon (portfolio average weight of 0.37%), and OBX Trust, 1.10% coupon (portfolio average weight of 0.35%).

 

Security Type Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      48.55  
Commercial Paper      28.79  
Asset-Backed Securities      17.66  
Non-U.S. Dollar Denominated Bonds & Notes      2.50  
Certificates of Deposit      1.27  
Variable Rate Senior Loan Interests      0.07  
Exchange-Traded Funds      0.05  
Money Market Funds Plus Other Assets Less Liabilities      1.11  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
Japan Treasury Discount Bill, Series 1185, 0.00%, 01/09/2024      2.50  
Harley-Davidson Financial Services, Inc., 0.00%, 11/06/2023      1.28  
Mercedes-Benz Finance North America LLC, 6.29%, 03/30/2025      1.07  
Conagra Brands, Inc., 0.00%, 11/08/2023      1.06  
Canadian Natural Resources Ltd., 3.80%, 04/15/2024      1.01  
Global Payments, Inc., 0.00%, 11/20/2023      0.92  
Cigna Group (The), 5.69%, 03/15/2026      0.92  
Jackson National Life Global Funding, 5.50%, 01/09/2026      0.86  
Swedbank AB, 6.73%, 06/15/2026      0.80  
Bank of Nova Scotia (The), 6.44%, 06/12/2025      0.80  
Total      11.22  

 

*

Excluding money market fund holdings.    

 

 

  22  

 


 

Invesco Ultra Short Duration ETF (GSY) (continued)

 

Growth of a $10,000 Investment

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
    10 Years
Average
Annualized
    10 Years
Cumulative
          Fund Inception  
Index   Average
Annualized
    Cumulative  
ICE BofA US Treasury Bill Index     4.83     1.82     5.55     1.78     9.24     1.17     12.34       0.92     15.49
Fund                    
NAV Return     5.40       1.50       4.58       1.95       10.12       1.74       18.84         1.38       24.13  
Market Price Return     5.42       1.50       4.56       1.94       10.08       1.74       18.82         1.38       24.13  

 

Guggenheim Ultra Short Duration ETF (the “Predecessor Fund”) Inception: February 12, 2008

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.22%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the index stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The index does 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 Index and Fund Performance History:

 

-

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

 

-

Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund.

 

 

  23  

 


 

 

VRIG    Management’s Discussion of Fund Performance
   Invesco Variable Rate Investment Grade ETF (VRIG)

 

The Invesco Variable Rate Investment Grade ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objectives are seeking to generate current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of investment-grade, variable rate or floating rate debt securities that are denominated in U.S. dollars and are issued by U.S. private sector entities or U.S. government agencies and instrumentalities.

Invesco Advisers, Inc., the sub-adviser to the Fund, selects the following types of securities for the Fund: (i) floating rate non- agency commercial mortgage-backed securities (“MBS”); variable rate non-agency residential MBS; variable rate agency MBS and floating rate non-agency asset-backed securities (“ABS”) (including floating rate non-agency commercial real estate collateralized loan obligations (“CLOs”)); (ii) floating rate corporate debt securities (comprised of corporate notes, bonds, debentures or privately issued securities offered pursuant to Rule 144A (“Rule 144A”) of the Securities Act of 1933, as amended (“Securities Act”)); (iii) floating rate government sponsored enterprise (“GSE”) credit risk transfers; (iv) floating rate U.S. Government securities (including floating rate agency debt securities); (v) variable rate preferred stock; and (vi) affiliated ETFs that invest primarily in any or all of the foregoing securities (collectively, “Variable Rate Instruments”), to the extent permitted by the Investment Company Act of 1940.

During the fiscal year ended October 31, 2023, on a market price basis, the Fund returned 7.46%. On a net asset value (“NAV”) basis, the Fund returned 7.32%. During the same time period, the Bloomberg US Floating Rate Note Index (the “Benchmark Index”) returned 6.58%.

The Fund’s outperformance relative to the Benchmark Index during the fiscal year ended October 31, 2023, was driven largely by its security selection in the consumer staples sector, as well as overweight allocation within the health care sector.

The Fund’s allocation to the consumer discretionary sector was also a contributor for the period. No sectors detracted from the Fund’s relative performance for the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended October 31, 2023, included U.S. Treasury Floating Rate Note, 5.52% coupon, due 07/31/2025 (portfolio average weight of 23.91%), and Freddie Mac, 8.22% coupon, due 04/25/2042 (portfolio average weight of 0.63%). Positions that detracted most significantly from the Fund’s return were BBCMS Mortgage Trust, 6.76% coupon, due 11/15/2034 (portfolio average weight of 0.26%) and COMM Mortgage Trust, 6.68% coupon, due 06/15/2034 (portfolio average weight of 0.39%).

Security Type Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2023
 
U.S. Dollar Denominated Bonds & Notes      38.77  
U.S. Treasury Securities      24.03  
Agency Credit Risk Transfer Notes      16.99  
Asset-Backed Securities      16.41  
U.S. Government Sponsored Agency Mortgage-Backed Securities      2.63  
Certificate of Deposit      0.52  
Money Market Funds Plus Other Assets Less Liabilities      0.65  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of October 31, 2023
 
Security   
U.S. Treasury Floating Rate Notes, 5.52%, 07/31/2025      24.03  
GA Global Funding Trust, 6.72%, 04/11/2025      0.75  
Charles Schwab Corp. (The), 5.85%, 03/18/2024      0.75  
CenterPoint Energy, Inc., 5.99%, 05/13/2024      0.74  
Freddie Mac, Series 2021-DNA6, Class M2, STACR®, 6.82%, 10/25/2041      0.72  
BPCE S.A., 7.34%, 10/19/2027      0.65  
Athene Global Funding, 6.05%, 05/24/2024      0.65  
Fannie Mae Connecticut Avenue Securities, Series 2023-R01, Class 1M1, 7.72%, 12/25/2042      0.64  
Freddie Mac, Series 2022-DNA3, Class M1B, STACR®, 8.22%, 04/25/2042      0.63  
NextEra Energy Capital Holdings, Inc., 6.38%, 03/21/2024      0.63  
Total      30.19  

 

*

Excluding money market fund holdings.

 

 

  24  

 


 

Invesco Variable Rate Investment Grade ETF (VRIG) (continued)

 

Growth of a $10,000 Investment Since Inception

 

LOGO

Fund Performance History as of October 31, 2023

 

    1 Year     3 Years
Average
Annualized
    3 Years
Cumulative
    5 Years
Average
Annualized
    5 Years
Cumulative
          Fund Inception  
Index         Average
Annualized
    Cumulative  
Bloomberg US Floating Rate Note Index     6.58     2.53     7.79     2.50     13.16       2.45     18.80
Fund                
NAV Return     7.32       2.78       8.56       2.60       13.68         2.59       19.92  
Market Price Return     7.46       2.81       8.65       2.62       13.79         2.57       19.78  

 

Fund Inception: September 22, 2016

Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See the current prospectus for more information.

According to the Fund’s current prospectus, the Fund’s expense ratio of 0.30% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

Performance results for the Benchmark Indexes stated above are based upon a hypothetical investment in their respective constituent securities. The returns of an index do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does 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 Index and Fund Performance History:

 

-

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

 

 

  25  

 


 

Invesco AAA CLO Floating Rate Note ETF (ICLO)

October 31, 2023

Schedule of Investments

 

     Principal
  Amount  
   Value  

Asset-Backed Securities-98.59%

     

ABPCI Direct Lending Fund IX LLC (Cayman Islands), Series 2020-9A, Class A1R, 7.05% (3 mo. Term SOFR + 1.66%), 11/18/2031(a)(b)

   $    500,000      $      494,572  

AGL CLO 14 Ltd. (Cayman Islands), Series 2021-14A, Class A, 6.82% (3 mo. Term SOFR + 1.41%), 12/02/2034(a)(b)

     1,500,000        1,488,654  

Aimco CLO 14 Ltd. (Cayman Islands), Series 2021-14A, Class A, 6.67% (3 mo. Term SOFR + 1.25%), 04/20/2034(a)(b)

     1,500,000        1,482,936  

Benefit Street Partners CLO XI (Cayman Islands), Series 2017-11A, Class A2R, 7.16% (3 mo. Term SOFR + 1.76%), 04/15/2029(a)(b)

     1,000,000        990,299  

Buckhorn Park CLO Ltd. (Cayman Islands), Series 2019-1A, Class AR, 6.78% (3 mo. Term SOFR + 1.38%), 07/18/2034(a)(b)

     1,325,000        1,316,096  

Carlyle Global Market Strategies CLO Ltd. (Cayman Islands)

     

Series 2013-1A, Class A1RR, 6.58% (3 mo. Term SOFR + 1.21%),
08/14/2030(a)(b)

     613,977        611,288  

Series 2014-2RA, Class A2, 6.95% (3 mo. Term SOFR + 1.59%), 05/15/2031(a)(b)

     1,000,000        983,029  

CBAM Ltd. (Cayman Islands), Series 2017-1A, Class A1, 6.93% (3 mo. Term SOFR + 1.51%), 07/20/2030(a)(b)

     226,495        225,972  

Cedar Funding IV CLO Ltd. (Cayman Islands), Series 2014-4A, Class ARR, 6.83% (3 mo. Term SOFR + 1.42%), 07/23/2034(a)(b)

     1,000,000        990,387  

Cedar Funding XI CLO Ltd. (Cayman Islands), Series 2019-11A, Class A1R, 6.72% (3 mo. Term SOFR + 1.31%), 05/29/2032(a)(b)

     1,000,000        994,865  

CIFC Funding 2013-II Ltd. (Cayman Islands), Series 2013-2A, Class A2L2, 7.16% (3 mo. Term SOFR + 1.76%), 10/18/2030(a)(b)

     500,000        494,187  

Elmwood CLO IX Ltd. (Cayman Islands), Series 2021-2A, Class A, 6.81% (3 mo. Term SOFR + 1.39%), 07/20/2034(a)(b)

     1,640,000        1,631,182  

GoldenTree Loan Management US CLO 1 Ltd. (Cayman Islands), Series 2017-1A, Class A1R2, 6.70% (3 mo. Term SOFR + 1.28%), 04/20/2034(a)(b)

     900,000        890,457  

Golub Capital Partners CLO 25(M) Ltd. (Cayman Islands), Series 2015-25A, Class AR, 7.01% (3 mo. Term SOFR + 1.64%), 05/05/2030(a)(b)

     1,113,975        1,111,473  

Golub Capital Partners CLO 40(B) Ltd. (Cayman Islands), Series 2019-40A, Class AR, 6.73% (3 mo. Term SOFR + 1.35%), 01/25/2032(a)(b)

     345,000        340,702  

Golub Capital Partners CLO 45(M) Ltd. (Cayman Islands), Series 2019-45A, Class A, 7.40% (3 mo. Term SOFR + 1.98%), 10/20/2031(a)(b)

     1,250,000        1,244,070  

Golub Capital Partners CLO 47(M) Ltd. (Cayman Islands), Series 2020-47A, Class A1, 7.33% (3 mo. Term SOFR + 1.94%), 05/05/2032(a)(b)

     1,150,000        1,144,172  
     Principal
  Amount  
   Value  

Madison Park Funding XXVI Ltd. (Cayman Islands), Series 2017-26A, Class BR, 7.25% (3 mo. Term SOFR + 1.86%),
07/29/2030(a)(b)

   $    550,000      $      544,942  

Madison Park Funding XXXVII Ltd. (Cayman Islands), Series 2019-37A, Class AR, 6.73% (3 mo. Term SOFR + 1.33%),
07/15/2033(a)(b)

     1,340,000        1,331,821  

Mariner CLO LLC (Cayman Islands), Series 2016-3A, Class BR2, 7.17% (3 mo. Term SOFR + 1.76%), 07/23/2029(a)(b)

     1,000,000        994,813  

Neuberger Berman CLO XV (Cayman Islands), Series 2013-15A, Class A1R2, 6.58% (3 mo. Term SOFR + 1.18%), 10/15/2029(a)(b)

     900,520        896,189  

Owl Rock CLO IV Ltd. (Cayman Islands), Series 2020-4A, Class A1R, 7.24% (3 mo. Term SOFR + 1.86%), 08/20/2033(a)(b)

     750,000        738,653  

Palmer Square CLO Ltd. (Cayman Islands), Series 2015-1A, Class A1A4, 6.77% (3 mo. Term SOFR + 1.39%), 05/21/2034(a)(b)

     1,795,000        1,782,241  

Rad CLO 5 Ltd. (Cayman Islands), Series 2019- 5A, Class BR, 7.36% (3 mo. Term SOFR + 1.96%), 07/24/2032(a)(b)

     2,000,000        1,969,694  

Regatta XX Funding Ltd. (Cayman Islands), Series 2021-2A, Class A, 6.82% (3 mo. Term SOFR + 1.42%), 10/15/2034(a)(b)

     1,345,000        1,337,814  

Regatta XXII Funding Ltd. (Cayman Islands), Series 2022-2A, Class A, 6.96% (3 mo. Term SOFR + 1.54%), 07/20/2035(a)(b)

     1,000,000        995,504  

RR 1 LLC, Series 2017-1A, Class A1AB, 6.81% (3 mo. Term SOFR + 1.41%), 07/15/2035(a)(b)

     1,310,000        1,301,942  

Signal Peak CLO 1 Ltd., Series 2014-1A, Class AR3, 6.82% (3 mo. Term SOFR + 1.42%), 04/17/2034(a)(b)

     1,500,000        1,486,066  

Sixth Street CLO XIX Ltd. (Cayman Islands), Series 2021-19A, Class A, 6.78% (3 mo. Term SOFR + 1.36%), 07/20/2034(a)(b)

     1,000,000        991,105  

Symphony CLO XIX Ltd. (Cayman Islands), Series 2018-19A, Class B, 7.01% (3 mo. Term SOFR + 1.61%), 04/16/2031(a)(b)

     900,000        877,387  

Symphony CLO XVI Ltd. (Cayman Islands), Series 2015-16A, Class AR, 6.81% (3 mo. Term SOFR + 1.41%), 10/15/2031(a)(b)

     500,000        497,591  

Symphony CLO XXXII Ltd. (Cayman Islands), Series 2022-32A, Class B, 7.26% (3 mo. Term SOFR + 1.85%), 04/23/2035(a)(b)

     500,000        485,300  
     

 

 

 

Total Asset-Backed Securities
(Cost $32,293,143)

        32,665,403  
     

 

 

 

 

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

 

    26    

 

 

 

 


 

Invesco AAA CLO Floating Rate Note ETF (ICLO)–(continued)

October 31, 2023

    

 

        Shares       Value  

Money Market Funds-0.90%

     

Invesco Government & Agency Portfolio, Institutional Class, 5.27%(c)(d)
(Cost $296,033)

     296,033      $ 296,033  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-99.49%
(Cost $32,589,176)

 

     32,961,436  

OTHER ASSETS LESS LIABILITIES-0.51%

        170,597  
     

 

 

 

NET ASSETS-100.00%

      $ 33,132,033  
     

 

 

 

 

Investment Abbreviations:

BR     -Bearer Shares

SOFR-Secured Overnight Financing Rate

Notes to Schedule of Investments:

(a) 

Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2023 was $32,665,403, which represented 98.59% of the Fund’s Net Assets.

(b) 

Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2023.

(c) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the period ended October 31, 2023.

 

    Value
October 31, 2022
  Purchases
at Cost
  Proceeds
from Sales
  Change in
Unrealized
Appreciation
  Realized
Gain
  Value
October 31, 2023
  Dividend
Income

Investments in Affiliated Money Market Funds:

                           

Invesco Government & Agency Portfolio, Institutional Class

      $-       $5,247,950       $(4,951,917)       $-       $-       $296,033           $9,147

 

(d) 

The rate shown is the 7-day SEC standardized yield as of October 31, 2023.

 

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

 

    27    

 

 

 

 


 

Invesco Active U.S. Real Estate ETF (PSR)

October 31, 2023

Schedule of Investments(a)

 

        Shares       Value  

Common Stocks & Other Equity Interests-99.96%(a)

 

Apartments -9.20%

 

Apartment Income REIT Corp.

          33,945      $      991,533  

AvalonBay Communities, Inc.(b)

     5,947        985,656  

Camden Property Trust(b)

     10,879        923,409  

Elme Communities(b)

     74,269        947,672  

Equity Residential

     17,430        964,402  

Essex Property Trust, Inc.(b)

     4,765        1,019,329  

Mid-America Apartment Communities, Inc.

     7,979        942,719  

UDR, Inc.

     28,854        917,846  
     

 

 

 
        7,692,566  
     

 

 

 

Data Centers -10.58%

 

Digital Realty Trust, Inc.

     35,851        4,458,431  

Equinix, Inc.

     6,002        4,379,299  
     

 

 

 
        8,837,730  
     

 

 

 

Diversified -1.25%

 

American Assets Trust, Inc.

     28,862        512,301  

W.P. Carey, Inc.(b)

     9,865        529,257  
     

 

 

 
        1,041,558  
     

 

 

 

Free Standing -5.56%

 

Agree Realty Corp.

     12,219        683,531  

Essential Properties Realty Trust, Inc.(b)

     30,954        679,440  

Four Corners Property Trust, Inc.

     30,231        643,920  

NETSTREIT Corp.(b)

     44,446        633,355  

NNN REIT, Inc.

     18,678        678,572  

Realty Income Corp.

     13,102        620,773  

Spirit Realty Capital, Inc.

     19,604        705,548  
     

 

 

 
        4,645,139  
     

 

 

 

Gaming REITs-4.07%

 

Gaming and Leisure Properties, Inc.

     37,809        1,716,150  

VICI Properties, Inc.

     60,434        1,686,109  
     

 

 

 
        3,402,259  
     

 

 

 

Health Care-8.54%

 

CareTrust REIT, Inc.(b)

     49,349        1,061,990  

Healthcare Realty Trust, Inc.(b)

     71,922        1,032,081  

Healthpeak Properties, Inc.

     60,154        935,395  

Omega Healthcare Investors, Inc.

     31,122        1,030,138  

Physicians Realty Trust(b)

     91,037        988,662  

Ventas, Inc.(b)

     24,671        1,047,530  

Welltower, Inc.(b)

     12,413        1,037,851  
     

 

 

 
        7,133,647  
     

 

 

 

Industrial-14.19%

 

Americold Realty Trust, Inc.(b)

     65,329        1,712,926  

EastGroup Properties, Inc.(b)

     10,831        1,768,161  

First Industrial Realty Trust, Inc.

     39,757        1,681,721  

Prologis, Inc.

     16,361        1,648,371  

Rexford Industrial Realty, Inc.

     36,882        1,594,778  

STAG Industrial, Inc.

     52,150        1,732,423  

Terreno Realty Corp.(b)

     32,282        1,719,985  
     

 

 

 
        11,858,365  
     

 

 

 

Infrastructure REITs-14.70%

 

American Tower Corp.

     24,025        4,281,015  
        Shares       Value  

Infrastructure REITs-(continued)

 

Crown Castle, Inc.

          41,836      $   3,889,911  

SBA Communications Corp., Class A

     19,735        4,117,313  
     

 

 

 
        12,288,239  
     

 

 

 

Lodging Resorts-2.60%

 

Apple Hospitality REIT, Inc.

     20,502        321,472  

DiamondRock Hospitality Co.(b)

     39,710        306,958  

Host Hotels & Resorts, Inc.

     19,979        309,275  

Pebblebrook Hotel Trust(b)

     24,087        287,358  

RLJ Lodging Trust(b)

     32,973        309,946  

Ryman Hospitality Properties, Inc.

     3,785        323,996  

Sunstone Hotel Investors, Inc.(b)

     33,880        315,084  
     

 

 

 
        2,174,089  
     

 

 

 

Manufactured Homes-3.84%

 

Equity LifeStyle Properties, Inc.

     16,343        1,075,370  

Sun Communities, Inc.

     9,959        1,107,839  

UMH Properties, Inc.

     74,215        1,024,909  
     

 

 

 
        3,208,118  
     

 

 

 

Office-3.38%

 

Alexandria Real Estate Equities, Inc.(b)

     5,993        558,128  

Boston Properties, Inc.(b)

     10,480        561,413  

Cousins Properties, Inc.

     30,498        544,999  

Empire State Realty Trust, Inc., Class A(b)

     73,986        598,547  

Kilroy Realty Corp.

     19,534        558,282  
     

 

 

 
        2,821,369  
     

 

 

 

Regional Malls-0.81%

 

Simon Property Group, Inc.

     6,137        674,395  
     

 

 

 

Self Storage-7.07%

     

CubeSmart(b)

     43,481        1,482,267  

Extra Space Storage, Inc.

     13,896        1,439,487  

National Storage Affiliates Trust

     53,590        1,528,387  

Public Storage

     6,114        1,459,473  
     

 

 

 
        5,909,614  
     

 

 

 

Shopping Centers-7.95%

 

Acadia Realty Trust(b)

     46,095        660,080  

Alexander & Baldwin, Inc.

     40,436        638,889  

Brixmor Property Group, Inc.

     32,148        668,357  

Federal Realty Investment Trust

     7,378        672,800  

Kimco Realty Corp.

     38,229        685,828  

Phillips Edison & Co., Inc.(b)

     19,211        678,341  

Regency Centers Corp.(b)

     11,155        672,200  

Retail Opportunity Investments Corp.(b)

     55,213        648,201  

SITE Centers Corp.(b)

     54,305        633,196  

Urban Edge Properties

     43,509        690,053  
     

 

 

 
        6,647,945  
     

 

 

 

Single Family Homes-2.33%

 

American Homes 4 Rent, Class A

     30,189        988,388  

Invitation Homes, Inc.

     32,177        955,335  
     

 

 

 
        1,943,723  
     

 

 

 

Specialty-0.95%

 

Lamar Advertising Co., Class A(b)

     4,618        379,923  

Outfront Media, Inc.

     42,319        413,033  
     

 

 

 
        792,956  
     

 

 

 

 

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

 

    28    

 

 

 

 


 

Invesco Active U.S. Real Estate ETF (PSR)–(continued)

October 31, 2023

    

 

        Shares       Value  

Timber REITs-2.94%

     

PotlatchDeltic Corp.

          19,193      $ 822,420  

Rayonier, Inc.

     31,998        807,629  

Weyerhaeuser Co.(b)

     28,740        824,551  
     

 

 

 
          2,454,600  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $104,081,193)

        83,526,312  
     

 

 

 

Money Market Funds-0.01%

     

Invesco Government & Agency Portfolio, Institutional Class, 5.27%(c)(d)
(Cost $6,835)

     6,835        6,835  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.97%
(Cost $104,088,028)

        83,533,147  
     

 

 

 
        Shares       Value  
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-14.90%

 

  

Invesco Private Government Fund, 5.32%(c)(d)(e)

     3,486,152      $ 3,486,152  

Invesco Private Prime Fund,
5.53%(c)(d)(e)

     8,967,520        8,968,417  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $12,455,230)

        12,454,569  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-114.87%
(Cost $116,543,258)

 

     95,987,716  

OTHER ASSETS LESS LIABILITIES-(14.87)%

 

     (12,427,312
     

 

 

 

NET ASSETS-100.00%.

      $ 83,560,404  
     

 

 

 

 

Investment Abbreviations:

REIT-Real Estate Investment Trust

Notes to Schedule of Investments:

(a) 

Property type classifications used in this report are generally according to FTSE National Association of Real Estate Investment Trusts (“NAREIT”) Equity REITs Index, which is exclusively owned by NAREIT.

(b) 

All or a portion of this security was out on loan at October 31, 2023.

(c) 

Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2023.

 

   

Value
October 31, 2022

   

  Purchases  
at Cost

   

Proceeds
  from Sales  

   

Change  in
Unrealized
Appreciation
(Depreciation)

   

Realized
Gain

   

Value
October 31, 2023

   

Dividend
Income

 

Investments in Affiliated Money Market Funds:

                         

Invesco Government & Agency Portfolio, Institutional Class

             $ -       $ 2,704,528     $ (2,697,693     $ -       $ -       $ 6,835       $ 1,352  

Investments Purchased with Cash Collateral from Securities on Loan:

                         

Invesco Private Government Fund

      1,689,902                  62,145,031       (60,348,781                -           `       -                  3,486,152                  153,432

Invesco Private Prime Fund

      4,344,289         133,709,996       (129,086,976       (737       1,845         8,968,417         414,065
   

 

 

     

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total

    $ 6,034,191       $ 198,559,555     $ (192,133,450     $ (737     $ 1,845       $ 12,461,404       $ 568,849  
   

 

 

     

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

*

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

 

(d) 

The rate shown is the 7-day SEC standardized yield as of October 31, 2023.

(e) 

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

 

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

 

    29    

 

 

 

 


 

Invesco High Yield Bond Factor ETF (IHYF)

October 31, 2023

Schedule of Investments(a)

 

     Principal
  Amount  
     Value    

U.S. Dollar Denominated Bonds & Notes-97.63%

 

Advertising-0.54%

     

Advantage Sales & Marketing, Inc., 6.50%, 11/15/2028(b)

   $   126,000      $      102,872  

Belo Corp., 7.25%, 09/15/2027

     130,000        124,010  
     

 

 

 
        226,882  
     

 

 

 

Aerospace & Defense-2.69%

     

Bombardier, Inc. (Canada), 7.50%, 02/01/2029(b)(c)

     217,000        201,224  

Howmet Aerospace, Inc.

     

5.13%, 10/01/2024

     35,000        34,624  

6.88%, 05/01/2025

     115,000        115,528  

5.95%, 02/01/2037

     80,000        73,182  

Spirit AeroSystems, Inc.

     

7.50%, 04/15/2025(b)

     70,000        69,906  

9.38%, 11/30/2029(b)

     62,000        63,747  

TransDigm, Inc., 6.25%, 03/15/2026(b)(c)

     574,000        561,317  
     

 

 

 
        1,119,528  
     

 

 

 

Agricultural & Farm Machinery-0.14%

     

Titan International, Inc., 7.00%, 04/30/2028

     65,000        59,456  
     

 

 

 

Air Freight & Logistics-0.41%

     

Rand Parent LLC, 8.50%, 02/15/2030(b)

     188,000        171,858  
     

 

 

 

Alternative Carriers-0.59%

     

Lumen Technologies, Inc., 4.00%, 02/15/2027(b)

     144,000        97,331  

Qwest Corp., 7.25%, 09/15/2025

     77,000        73,830  

Zayo Group Holdings, Inc., 4.00%, 03/01/2027(b)

     100,000        75,381  
     

 

 

 
        246,542  
     

 

 

 

Aluminum-0.19%

     

Kaiser Aluminum Corp., 4.50%, 06/01/2031(b)

     106,000        78,461  
     

 

 

 

Apparel Retail-0.80%

     

Foot Locker, Inc., 4.00%, 10/01/2029(b)

     67,000        49,330  

Gap, Inc. (The)

     

3.63%, 10/01/2029(b)

     161,000        123,177  

3.88%, 10/01/2031(b)

     159,000        114,358  

Victoria’s Secret & Co., 4.63%, 07/15/2029(b)

     62,000        45,652  
     

 

 

 
        332,517  
     

 

 

 

Apparel, Accessories & Luxury Goods-0.83%

 

G-III Apparel Group Ltd., 7.88%, 08/15/2025(b)

     88,000        87,285  

Hanesbrands, Inc., 4.88%, 05/15/2026(b)(c)

     161,000        148,102  

Under Armour, Inc., 3.25%, 06/15/2026

     122,000        111,226  
     

 

 

 
        346,613  
     

 

 

 

Application Software-0.76%

     

Cloud Software Group, Inc.

     

6.50%, 03/31/2029(b)

     100,000        87,891  

9.00%, 09/30/2029(b)

     100,000        85,250  

Open Text Holdings, Inc. (Canada)

     

4.13%, 02/15/2030(b)

     103,000        85,475  

4.13%, 12/01/2031(b)

     76,000        59,785  
     

 

 

 
        318,401  
     

 

 

 
     Principal
  Amount  
     Value    

Asset Management & Custody Banks-0.13%

 

Brightsphere Investment Group, Inc., 4.80%, 07/27/2026

   $   58,000      $        52,718  
     

 

 

 

Automobile Manufacturers-2.61%

     

Ford Motor Credit Co. LLC

     

5.13%, 06/16/2025

     200,000        194,786  

4.13%, 08/04/2025

     200,000        190,829  

3.38%, 11/13/2025

     200,000        186,831  

6.80%, 05/12/2028

     200,000        199,622  

Jaguar Land Rover Automotive PLC (United Kingdom), 7.75%, 10/15/2025(b)

     200,000        200,355  

PM General Purchaser LLC, 9.50%, 10/01/2028(b)

     123,000        115,740  
     

 

 

 
        1,088,163  
     

 

 

 

Automotive Parts & Equipment-1.50%

     

Clarios Global L.P./Clarios US Finance Co., 8.50%, 05/15/2027(b)

     37,000        36,499  

Dana, Inc., 4.25%, 09/01/2030

     84,000        66,595  

IHO Verwaltungs GmbH (Germany), 7.13% PIK Rate, 6.38% Cash Rate, 05/15/2029(b)(d)

     200,000        174,487  

Tenneco, Inc., 8.00%, 11/17/2028(b)

     200,000        160,710  

ZF North America Capital, Inc. (Germany), 4.75%, 04/29/2025(b)

     192,000        185,453  
     

 

 

 
        623,744  
     

 

 

 

Automotive Retail-0.09%

     

Sonic Automotive, Inc., 4.63%, 11/15/2029(b)

     45,000        37,521  
     

 

 

 

Broadcasting-2.18%

     

AMC Networks, Inc., 4.75%, 08/01/2025

     72,000        65,649  

iHeartCommunications, Inc.

     

6.38%, 05/01/2026

     72,000        58,760  

8.38%, 05/01/2027(c)

     45,000        27,628  

5.25%, 08/15/2027(b)

     100,000        73,380  

Liberty Interactive LLC, 8.25%, 02/01/2030

     79,000        20,343  

Paramount Global, 6.38%, 03/30/2062(c)(e)

     298,000        219,587  

TEGNA, Inc.

     

4.75%, 03/15/2026(b)

     150,000        140,133  

4.63%, 03/15/2028

     155,000        134,269  

Univision Communications, Inc., 5.13%, 02/15/2025(b)

     51,000        49,852  

Urban One, Inc., 7.38%, 02/01/2028(b)

     67,000        55,152  

Videotron Ltd. (Canada), 5.13%, 04/15/2027(b)

     69,000        64,284  
     

 

 

 
        909,037  
     

 

 

 

Broadline Retail-2.68%

     

GrubHub Holdings, Inc., 5.50%, 07/01/2027(b)

     90,000        66,286  

Kohl’s Corp.

     

4.63%, 05/01/2031

     90,000        61,641  

5.55%, 07/17/2045(c)

     100,000        58,110  

Macy’s Retail Holdings LLC

     

5.88%, 04/01/2029(b)

     242,000        213,595  

6.13%, 03/15/2032(b)

     93,000        76,911  

 

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

 

    30    

 

 

 

 


 

Invesco High Yield Bond Factor ETF (IHYF)–(continued)

October 31, 2023

 

 

     Principal
  Amount  
     Value    

Broadline Retail-(continued)

 

Nordstrom, Inc.

     

4.00%, 03/15/2027

   $     99,000      $        87,505  

6.95%, 03/15/2028

     124,000        116,837  

4.38%, 04/01/2030

     79,000        61,415  

4.25%, 08/01/2031

     96,000        70,436  

QVC, Inc.

     

4.75%, 02/15/2027

     125,000        71,203  

5.45%, 08/15/2034

     68,000        28,851  

Rakuten Group, Inc. (Japan), 10.25%, 11/30/2024(b)

     200,000        202,503  
     

 

 

 
        1,115,293  
     

 

 

 

Building Products-2.28%

 

Builders FirstSource, Inc., 4.25%, 02/01/2032(b)

     194,000        154,628  

Cornerstone Building Brands, Inc., 6.13%, 01/15/2029(b)

     89,000        65,151  

JELD-WEN, Inc.

     

4.63%, 12/15/2025(b)

     41,000        38,795  

4.88%, 12/15/2027(b)(c)

     167,000        141,728  

Masonite International Corp.

     

5.38%, 02/01/2028(b)

     100,000        92,206  

3.50%, 02/15/2030(b)

     90,000        71,371  

Standard Industries, Inc.

     

5.00%, 02/15/2027(b)

     89,000        82,364  

4.75%, 01/15/2028(b)

     80,000        71,685  

4.38%, 07/15/2030(b)

     208,000        170,140  

3.38%, 01/15/2031(b)

     81,000        61,390  
     

 

 

 
        949,458  
     

 

 

 

Cable & Satellite-4.76%

 

Altice Financing S.A. (Luxembourg), 5.75%, 08/15/2029(b)

     200,000        154,880  

CCO Holdings LLC/CCO Holdings Capital Corp.

     

5.50%, 05/01/2026(b)

     88,000        84,010  

5.13%, 05/01/2027(b)

     285,000        262,658  

CSC Holdings LLC

     

5.25%, 06/01/2024

     69,000        64,578  

6.50%, 02/01/2029(b)

     200,000        158,417  

4.63%, 12/01/2030(b)

     200,000        101,567  

DIRECTV Financing LLC/DIRECTV Financing Co-Obligor, Inc., 5.88%, 08/15/2027(b)(c)

     240,000        210,521  

DISH DBS Corp.

     

7.75%, 07/01/2026

     184,000        123,517  

5.25%, 12/01/2026(b)

     159,000        128,556  

DISH Network Corp., 11.75%, 11/15/2027(b)

     137,000        135,820  

LCPR Senior Secured Financing DAC

     

6.75%, 10/15/2027(b)

     200,000        181,204  

5.13%, 07/15/2029(b)

     200,000        156,004  

Radiate Holdco LLC/Radiate Finance, Inc., 6.50%, 09/15/2028(b)

     40,000        19,842  

Sirius XM Radio, Inc., 3.13%, 09/01/2026(b)

     53,000        47,585  

VZ Secured Financing B.V. (Netherlands), 5.00%, 01/15/2032(b)

     200,000        151,886  
     

 

 

 
        1,981,045  
     

 

 

 

Casinos & Gaming-3.71%

 

Affinity Interactive, 6.88%, 12/15/2027(b)

     187,000        152,583  
     Principal
  Amount  
     Value    

Casinos & Gaming-(continued)

 

Caesars Entertainment, Inc.

     

6.25%, 07/01/2025(b)

   $   182,000      $      179,212  

4.63%, 10/15/2029(b)

     45,000        37,028  

Caesars Resort Collection LLC/CRC Finco, Inc., 5.75%, 07/01/2025(b)

     118,000        116,256  

Churchill Downs, Inc., 5.50%, 04/01/2027(b)

     100,000        93,883  

Las Vegas Sands Corp., 2.90%, 06/25/2025

     200,000        187,924  

Melco Resorts Finance Ltd. (Hong Kong)

     

5.25%, 04/26/2026(b)

     200,000        183,138  

5.38%, 12/04/2029(b)

     200,000        159,211  

MGM Resorts International

     

6.75%, 05/01/2025

     36,000        35,837  

4.63%, 09/01/2026

     200,000        186,035  

Mohegan Tribal Gaming Authority, 8.00%, 02/01/2026(b)

     61,000        56,114  

Premier Entertainment Sub LLC/Premier

     

Entertainment Finance Corp., 5.88%, 09/01/2031(b)(c)

     234,000        159,120  
     

 

 

 
        1,546,341  
     

 

 

 

Coal & Consumable Fuels-0.24%

 

Enviva Partners L.P./Enviva Partners Finance Corp., 6.50%, 01/15/2026(b)

     140,000        98,503  
     

 

 

 

Commercial & Residential Mortgage Finance-0.30%

 

NMI Holdings, Inc., 7.38%, 06/01/2025(b)

     81,000        81,193  

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., 2.88%, 10/15/2026(b)

     49,000        42,714  
     

 

 

 
        123,907  
     

 

 

 

Commodity Chemicals-0.27%

 

Methanex Corp. (Canada), 5.25%, 12/15/2029

     127,000        112,436  
     

 

 

 

Communications Equipment-1.07%

 

CommScope Technologies LLC, 6.00%, 06/15/2025(b)

     40,000        24,060  

Hughes Satellite Systems Corp.

     

5.25%, 08/01/2026

     200,000        180,060  

6.63%, 08/01/2026

     79,000        67,033  

Viasat, Inc., 5.63%, 04/15/2027(b)

     200,000        174,782  
     

 

 

 
        445,935  
     

 

 

 

Construction & Engineering-0.86%

 

AECOM, 5.13%, 03/15/2027

     298,000        281,685  

Brookfield Residential Properties, Inc./ Brookfield Residential US LLC (Canada), 6.25%, 09/15/2027(b)

     88,000        76,646  
     

 

 

 
        358,331  
     

 

 

 

Construction Machinery & Heavy Transportation Equipment-0.33%

 

Manitowoc Co., Inc. (The), 9.00%, 04/01/2026(b)(c)

     40,000        39,249  

Trinity Industries, Inc., 4.55%, 10/01/2024

     100,000        97,094  
     

 

 

 
        136,343  
     

 

 

 

Construction Materials-0.33%

 

Camelot Return Merger Sub, Inc., 8.75%, 08/01/2028(b)

     70,000        65,432  

Eco Material Technologies, Inc., 7.88%, 01/31/2027(b)

     78,000        73,941  
     

 

 

 
        139,373  
     

 

 

 

 

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

 

    31    

 

 

 

 


 

Invesco High Yield Bond Factor ETF (IHYF)–(continued)

October 31, 2023

 

 

     Principal
  Amount  
     Value    

Consumer Finance-3.76%

 

Ally Financial, Inc., 5.75%, 11/20/2025(c)

   $     92,000      $      85,862  

ASG Finance Designated Activity Co. (Cyprus), 7.88%, 12/03/2024(b)

     200,000        193,750  

Credit Acceptance Corp., 5.13%, 12/31/2024(b)

     80,000        77,608  

Navient Corp.

     

6.75%, 06/25/2025

     200,000        195,279  

5.00%, 03/15/2027(c)

     116,000        102,003  

9.38%, 07/25/2030

     46,000        43,401  

5.63%, 08/01/2033

     62,000        42,037  

OneMain Finance Corp.

     

6.88%, 03/15/2025

     72,000        71,113  

7.13%, 03/15/2026

     140,000        136,141  

9.00%, 01/15/2029

     138,000        134,432  

4.00%, 09/15/2030

     130,000        95,245  

PRA Group, Inc.

     

7.38%, 09/01/2025(b)

     140,000        131,043  

8.38%, 02/01/2028(b)

     92,000        75,843  

Synchrony Financial, 7.25%, 02/02/2033

     215,000        182,440  
     

 

 

 
        1,566,197  
     

 

 

 

Distributors-0.57%

 

Evergreen Acqco 1 L.P./TVI, Inc., 9.75%, 04/26/2028(b)

     58,000        58,578  

Performance Food Group, Inc., 6.88%, 05/01/2025(b)

     180,000        179,274  
     

 

 

 
        237,852  
     

 

 

 

Diversified Banks-0.21%

 

Freedom Mortgage Corp.

     

7.63%, 05/01/2026(b)

     50,000        46,061  

6.63%, 01/15/2027(b)

     50,000        43,321  
     

 

 

 
        89,382  
     

 

 

 

Diversified Chemicals-1.10%

 

Chemours Co. (The)

     

5.38%, 05/15/2027

     68,000        61,498  

5.75%, 11/15/2028(b)

     160,000        135,466  

4.63%, 11/15/2029(b)

     54,000        41,764  

INEOS Finance PLC (Luxembourg), 6.75%, 05/15/2028(b)

     200,000        186,988  

Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., 5.13%, 04/01/2029(b)

     78,000        32,912  
     

 

 

 
        458,628  
     

 

 

 

Diversified Financial Services-3.22%

 

AG Issuer LLC, 6.25%, 03/01/2028(b)

     92,000        84,853  

Albion Financing 1 S.a.r.l./Aggreko Holdings, Inc. (Luxembourg), 6.13%, 10/15/2026(b)

     200,000        185,231  

Albion Financing 2 S.a.r.l. (Luxembourg), 8.75%, 04/15/2027(b)

     200,000        183,698  

Midcap Financial Issuer Trust, 5.63%, 01/15/2030(b)

     209,000        161,063  

Resorts World Las Vegas LLC/RWLV Capital, Inc.

     

4.63%, 04/16/2029(b)

     200,000        153,810  

4.63%, 04/06/2031(b)

     200,000        141,219  

Scientific Games Holdings L.P./Scientific Games US FinCo, Inc., 6.63%,
03/01/2030(b)(c)

     163,000        140,329  
     Principal
  Amount  
     Value    

Diversified Financial Services-(continued)

 

United Wholesale Mortgage LLC

     

5.50%, 11/15/2025(b)

   $   121,000      $      115,157  

5.75%, 06/15/2027(b)

     47,000        42,814  

5.50%, 04/15/2029(b)

     85,000        71,282  

VistaJet Malta Finance PLC/Vista Management Holding, Inc. (Switzerland), 6.38%, 02/01/2030(b)

     91,000        60,785  
     

 

 

 
        1,340,241  
     

 

 

 

Diversified Metals & Mining-0.54%

 

Mineral Resources Ltd. (Australia)

     

8.13%, 05/01/2027(b)

     86,000        83,750  

8.50%, 05/01/2030(b)

     148,000        141,875  
     

 

 

 
        225,625  
     

 

 

 

Diversified Real Estate Activities-0.12%

 

Five Point Operating Co. L.P./Five Point Capital Corp., 7.88%, 11/15/2025(b)

     51,000        47,944  
     

 

 

 

Diversified REITs-0.17%

     

HAT Holdings I LLC/HAT Holdings II LLC, 3.38%, 06/15/2026(b)

     82,000        72,269  
     

 

 

 

Diversified Support Services-1.35%

     

MPH Acquisition Holdings LLC

     

5.50%, 09/01/2028(b)

     81,000        68,943  

5.75%, 11/01/2028(b)

     87,000        64,945  

Neptune Bidco US, Inc., 9.29%, 04/15/2029(b)

     307,000        271,231  

Prime Security Services Borrower LLC/Prime Finance, Inc.

     

5.25%, 04/15/2024(b)

     39,000        38,790  

5.75%, 04/15/2026(b)

     120,000        116,531  
     

 

 

 
        560,440  
     

 

 

 

Education Services-0.27%

 

Grand Canyon University, 4.13%, 10/01/2024

     118,000        112,537  
     

 

 

 

Electric Utilities-1.64%

     

Drax Finco PLC (United Kingdom), 6.63%, 11/01/2025(b)

     200,000        192,671  

Edison International, 8.13%, 06/15/2053(e)

     70,000        67,672  

Midland Cogeneration Venture L.P., 6.00%, 03/15/2025(b)

     43,042        42,504  

NRG Energy, Inc.

     

5.25%, 06/15/2029(b)

     83,000        73,323  

3.63%, 02/15/2031(b)

     87,000        65,761  

3.88%, 02/15/2032(b)

     144,000        107,230  

Vistra Operations Co. LLC

     

5.63%, 02/15/2027(b)

     63,000        59,342  

5.00%, 07/31/2027(b)

     80,000        73,256  
     

 

 

 
        681,759  
     

 

 

 

Electrical Components & Equipment-0.27%

 

WESCO Distribution, Inc., 7.13%, 06/15/2025(b)

     114,000        114,045  
     

 

 

 

Electronic Components-0.67%

     

Imola Merger Corp., 4.75%, 05/15/2029(b)

     160,000        139,625  

Likewize Corp., 9.75%, 10/15/2025(b)

     141,000        140,170  
     

 

 

 
        279,795  
     

 

 

 

Environmental & Facilities Services-0.15%

     

Enviri Corp., 5.75%, 07/31/2027(b)

     73,000        61,777  
     

 

 

 

 

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

 

    32    

 

 

 

 


 

Invesco High Yield Bond Factor ETF (IHYF)–(continued)

October 31, 2023

 

 

     Principal
  Amount  
         Value        

Financial Exchanges & Data-0.33%

 

Coinbase Global, Inc., 3.38%, 10/01/2028(b)

   $ 189,000      $ 138,946  
     

 

 

 

Food Distributors-0.62%

 

C&S Group Enterprises LLC, 5.00%, 12/15/2028(b)

     224,000        173,515  

United Natural Foods, Inc., 6.75%, 10/15/2028(b)

     107,000        84,296  
     

 

 

 
        257,811  
     

 

 

 

Food Retail-0.29%

 

Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s L.P./Albertson’s LLC, 4.63%, 01/15/2027(b)

     128,000        120,087  
     

 

 

 

Footwear-0.63%

     

Abercrombie & Fitch Management Co., 8.75%, 07/15/2025(b)

     147,000        149,025  

Wolverine World Wide, Inc., 4.00%, 08/15/2029(b)

     154,000        114,988  
     

 

 

 
        264,013  
     

 

 

 

Gas Utilities-0.41%

 

AmeriGas Partners L.P./AmeriGas Finance Corp.

     

5.88%, 08/20/2026.

     60,000        56,307  

9.38%, 06/01/2028(b)

     50,000        49,458  

Ferrellgas L.P./Ferrellgas Finance Corp., 5.88%, 04/01/2029(b)

     75,000        66,251  
     

 

 

 
        172,016  
     

 

 

 

Health Care Distributors-0.23%

 

Owens & Minor, Inc., 6.63%, 04/01/2030(b)

     110,000        96,248  
     

 

 

 

Health Care Equipment-0.23%

     

Varex Imaging Corp., 7.88%, 10/15/2027(b)

     96,000        94,205  
     

 

 

 

Health Care Facilities-0.64%

     

RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., 9.75%, 12/01/2026(b)

     76,000        71,137  

Tenet Healthcare Corp., 4.88%, 01/01/2026(c)

     204,000        195,702  
     

 

 

 
        266,839  
     

 

 

 

Health Care REITs-0.86%

 

MPT Operating Partnership L.P./MPT Finance Corp.

     

5.00%, 10/15/2027(c)

     348,000        269,181  

4.63%, 08/01/2029.

     131,000        90,948  
     

 

 

 
        360,129  
     

 

 

 

Health Care Services-2.03%

 

Community Health Systems, Inc.

     

8.00%, 03/15/2026(b)

     126,000        115,344  

5.63%, 03/15/2027(b)

     180,000        146,381  

6.00%, 01/15/2029(b)

     160,000        121,371  

6.88%, 04/15/2029(b)

     102,000        42,223  

6.13%, 04/01/2030(b)

     84,000        32,638  

5.25%, 05/15/2030(b)

     83,000        59,020  

Global Medical Response, Inc., 6.50%, 10/01/2025(b)

     10,000        6,368  

ModivCare, Inc., 5.88%, 11/15/2025(b)

     97,000        91,768  
     Principal
  Amount  
         Value        

Health Care Services-(continued)

 

Prime Healthcare Services, Inc., 7.25%, 11/01/2025(b)

   $ 75,000      $ 68,330  

US Acute Care Solutions LLC, 6.38%, 03/01/2026(b)

     192,000        163,535  
     

 

 

 
        846,978  
     

 

 

 

Health Care Technology-0.27%

     

athenahealth Group, Inc., 6.50%, 02/15/2030(b)

     135,000        110,440  
     

 

 

 

Home Furnishings-0.35%

     

Tempur Sealy International, Inc.

     

4.00%, 04/15/2029(b)

     100,000        82,184  

3.88%, 10/15/2031(b)

     87,000        65,265  
     

 

 

 
        147,449  
     

 

 

 

Home Improvement Retail-0.26%

 

Specialty Building Products Holdings LLC/SBP Finance Corp., 6.38%, 09/30/2026(b)

     117,000        108,962  
     

 

 

 

Homebuilding-1.14%

 

LGI Homes, Inc., 4.00%, 07/15/2029(b)

     202,000        154,782  

New Home Co., Inc. (The), 7.25%, 10/15/2025(b)

     80,000        73,176  

Shea Homes L.P./Shea Homes Funding Corp., 4.75%, 02/15/2028

     78,000        68,652  

Taylor Morrison Communities, Inc., 5.75%, 01/15/2028(b)

     80,000        72,709  

Tri Pointe Homes, Inc., 5.25%, 06/01/2027

     118,000        106,930  
     

 

 

 
        476,249  
     

 

 

 

Hotel & Resort REITs-0.65%

 

Service Properties Trust

     

4.50%, 03/15/2025

     19,000        17,762  

4.75%, 10/01/2026

     150,000        127,675  

4.95%, 02/15/2027(c)

     149,000        124,196  
     

 

 

 
        269,633  
     

 

 

 

Hotels, Resorts & Cruise Lines-0.58%

 

Six Flags Theme Parks, Inc., 7.00%, 07/01/2025(b)

     66,000        65,607  

Travel + Leisure Co., Series J, 6.00%, 04/01/2027

     188,000        175,780  
     

 

 

 
        241,387  
     

 

 

 

Housewares & Specialties-0.80%

 

Newell Brands, Inc.

     

4.88%, 06/01/2025

     100,000        96,056  

5.20%, 04/01/2026

     183,000        172,947  

6.38%, 09/15/2027

     70,000        65,775  
     

 

 

 
        334,778  
     

 

 

 

Independent Power Producers & Energy Traders-0.43%

 

EnfraGen Energia Sur S.A./EnfraGen Spain S.A./Prime Energia S.p.A. (Colombia), 5.38%, 12/30/2030(b)

     270,000        179,944  
     

 

 

 

Industrial Conglomerates-0.78%

 

Icahn Enterprises L.P./Icahn Enterprises Finance Corp.

     

6.25%, 05/15/2026

     159,000        145,465  

4.38%, 02/01/2029(c)

     230,000        177,371  
     

 

 

 
        322,836  
     

 

 

 

 

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

 

    33    

 

 

 

 


 

Invesco High Yield Bond Factor ETF (IHYF)–(continued)

October 31, 2023

 

 

     Principal
  Amount  
         Value        

Industrial Machinery & Supplies & Components-0.28%

 

CD&R Smokey Buyer, Inc., 6.75%, 07/15/2025(b)

   $ 57,000      $ 54,531  

JPW Industries Holding Corp., 9.00%, 10/01/2024(b)

     65,000        63,741  
     

 

 

 
        118,272  
     

 

 

 

Insurance Brokers-0.40%

 

Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.75%, 10/15/2027(b)

     80,000        73,130  

HUB International Ltd., 7.00%, 05/01/2026(b)

     98,000        95,485  
     

 

 

 
        168,615  
     

 

 

 

Integrated Telecommunication Services-3.38%

 

Altice France S.A. (France)

     

5.50%, 01/15/2028(b)

     200,000        148,793  

5.13%, 07/15/2029(b)

     200,000        137,069  

CommScope, Inc.

     

6.00%, 03/01/2026(b)

     100,000        84,133  

4.75%, 09/01/2029(b)

     100,000        68,393  

Connect Finco S.a.r.l./Connect US Finco LLC (United Kingdom), 6.75%, 10/01/2026(b)

     200,000        186,657  

Consolidated Communications, Inc., 6.50%, 10/01/2028(b)

     53,000        41,976  

Frontier North, Inc., Series G, 6.73%, 02/15/2028

     154,000        140,949  

Level 3 Financing, Inc.

     

3.40%, 03/01/2027(b)

     90,000        83,406  

3.88%, 11/15/2029(b)

     160,000        142,720  

10.50%, 05/15/2030(b)

     67,000        67,112  

Telecom Italia S.p.A. (Italy), 5.30%, 05/30/2024(b)

     200,000        196,279  

Windstream Escrow LLC/Windstream Escrow Finance Corp., 7.75%, 08/15/2028(b)

     140,000        111,149  
     

 

 

 
        1,408,636  
     

 

 

 

Interactive Media & Services-1.14%

 

Cumulus Media New Holdings, Inc., 6.75%, 07/01/2026(b)

     37,000        26,489  

Diamond Sports Group LLC/Diamond Sports Finance Co., 5.38%, 08/15/2026(b)

     101,000        1,167  

Millennium Escrow Corp., 6.63%, 08/01/2026(b)

     72,000        53,534  

Nexstar Media, Inc., 5.63%, 07/15/2027(b)(c)

     300,000        270,210  

Scripps Escrow II, Inc., 5.38%, 01/15/2031(b)

     160,000        99,474  

TripAdvisor, Inc., 7.00%, 07/15/2025(b)

     24,000        23,783  
     

 

 

 
        474,657  
     

 

 

 

Internet Services & Infrastructure-0.09%

 

Cogent Communications Group, Inc., 3.50%, 05/01/2026(b)

     43,000        38,969  
     

 

 

 

Investment Banking & Brokerage-0.31%

 

NFP Corp., 6.88%, 08/15/2028(b)

     119,000        101,775  

StoneX Group, Inc., 8.63%, 06/15/2025(b)

     26,000        26,111  
     

 

 

 
        127,886  
     

 

 

 

IT Consulting & Other Services-0.09%

 

Unisys Corp., 6.88%, 11/01/2027(b)

     49,000        35,950  
     

 

 

 
     Principal
  Amount  
         Value        

Leisure Facilities-0.90%

 

Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., 5.50%, 05/01/2025(b)

   $ 48,000      $ 47,090  

Life Time, Inc., 5.75%, 01/15/2026(b)

     116,000        112,446  

NCL Corp. Ltd., 5.88%, 03/15/2026(b)

     161,000        144,641  

Vail Resorts, Inc., 6.25%, 05/15/2025(b)

     70,000        69,628  
     

 

 

 
        373,805  
     

 

 

 

Leisure Products-0.32%

 

Vista Outdoor, Inc., 4.50%, 03/15/2029(b)

     142,000        132,263  
     

 

 

 

Life Sciences Tools & Services-0.17%

 

Fortrea Holdings, Inc., 7.50%, 07/01/2030(b)

     75,000        72,469  
     

 

 

 

Marine Transportation-0.15%

     

Seaspan Corp. (Hong Kong), 5.50%, 08/01/2029(b)

     81,000        62,223  
     

 

 

 

Metal, Glass & Plastic Containers-1.75%

     

Ardagh Metal Packaging Finance USA LLC/ Ardagh Metal Packaging Finance PLC, 6.00%, 06/15/2027(b)

     200,000        189,251  

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.

     

5.25%, 04/30/2025(b)

     200,000        192,834  

4.13%, 08/15/2026(b)

     200,000        176,704  

Ball Corp.

     

5.25%, 07/01/2025

     60,000        59,135  

4.88%, 03/15/2026

     73,000        70,188  

Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC (Canada), 6.00%, 09/15/2028(b)

     49,000        40,280  
     

 

 

 
        728,392