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Invesco Annual Report to Shareholders

 

 

August 31, 2022

 

  DWAS   Invesco DWA SmallCap Momentum ETF
  PSCD   Invesco S&P SmallCap Consumer Discretionary ETF
  PSCC   Invesco S&P SmallCap Consumer Staples ETF
  PSCE   Invesco S&P SmallCap Energy ETF
  PSCF   Invesco S&P SmallCap Financials ETF
  PSCH   Invesco S&P SmallCap Health Care ETF
  PSCI   Invesco S&P SmallCap Industrials ETF
  PSCT   Invesco S&P SmallCap Information Technology ETF
  PSCM   Invesco S&P SmallCap Materials ETF
  PSCU   Invesco S&P SmallCap Utilities & Communication Services ETF


 

Table of Contents

 

The Market Environment      3  
Management’s Discussion of Fund Performance      4  
Liquidity Risk Management Program      24  
Schedules of Investments   

Invesco DWA SmallCap Momentum ETF (DWAS)

     25  

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

     28  

Invesco S&P SmallCap Consumer Staples ETF (PSCC)

     30  

Invesco S&P SmallCap Energy ETF (PSCE)

     32  

Invesco S&P SmallCap Financials ETF (PSCF)

     33  

Invesco S&P SmallCap Health Care ETF (PSCH)

     36  

Invesco S&P SmallCap Industrials ETF (PSCI)

     38  

Invesco S&P SmallCap Information Technology ETF (PSCT)

     40  

Invesco S&P SmallCap Materials ETF (PSCM)

     42  

Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU)

     44  
Statements of Assets and Liabilities      46  
Statements of Operations      48  
Statements of Changes in Net Assets      50  
Financial Highlights      54  
Notes to Financial Statements      62  
Report of Independent Registered Public Accounting Firm      74  
Fund Expenses      75  
Tax Information      77  
Trustees and Officers      78  
Approval of Investment Advisory and Sub-Advisory Contracts      88  

 

 

  2  

 


 

The Market Environment

 

 

 

Domestic Equity

The fiscal year began with increasing volatility and the US stock market saw a selloff through most of September due to increasing concerns of inflation resulting from a spike in oil prices and supply chain shortages causing rising costs. Despite the Consumer Price Index (CPI) increasing monthly from June through September 2021,1 the US Federal Reserve (the Fed) declined to raise interest rates at its September 2021 Federal Open Market Committee meeting.

Equity markets saw continued volatility in the fourth quarter of 2021 amid record inflation and the emergence of a new COVID-19 variant. Pandemic-related supply chain disruption and labor shortages intensified during the quarter, resulting in broadly higher input costs for companies and consumers alike. Additionally, the price of oil rose to nearly $85 per barrel in October,2 causing higher gas prices for consumers, and pushing energy stocks higher. The CPI reported for November increased 0.8%, resulting in a 6.8% increase over the prior 12 months, the highest since 1982.1 To combat inflation, the Fed announced a faster pace of “tapering” at its December meeting, pledging to end its asset purchase program by March 2022. The Fed also announced the potential for three interest rate increases in 2022. With solid corporate earnings and optimism about the COVID-19 Omicron variant reporting milder symptoms, stocks rallied at the 2021 year-end.

Equity markets declined in the first quarter of 2022 amid volatility sparked by Russia’s invasion of Ukraine, rising commodity prices, rampant global inflation and the Fed’s shift toward tighter monetary policy. Russia’s invasion exacerbated inflationary pressures, disrupting already strained supply chains and increasing shortages of oil, gas and raw materials. The price of oil rose sharply, with crude prices reaching their highest price per barrel since 2008.2 The CPI rose by another 7.9% for the 12 months ended February 2022 reaching a 40 year high.1 To combat inflation, the Fed raised the federal funds rate by a one-quarter percentage point in March.

As the war in Ukraine continued and corporate earnings in high-profile names, like Netflix, reported slowing growth and profits, the equity markets sold off for much of April 2022. The downward direction of the equity markets continued for much of the second quarter of 2022 amid record inflation, rising interest rates and an increasing likelihood of a US recession. Driven by higher food and energy prices, the CPI rose by yet another 8.6% for the 12 months ended May 2022 reaching a 40 year high.1 Oil prices peaked near $122 per barrel in early June, resulting in skyrocketing gasoline prices; the national average price reached a record high above $5 per gallon in early June.2 To tame inflation, the Fed raised the benchmark federal funds rate three more times, by 0.50% in May, by 0.75% in June and another 0.75% in July, which were the largest increases in nearly 30 years.3

US equity markets rose in July and much of August until Fed chairman Jerome Powell’s hawkish comments at Jackson Hole, Wyoming, an economic policy symposium, sparked a sharp selloff at month end. Due to declining energy prices, the CPI rose by 8.5% for the 12 months ending July,1 down slightly from June, but still at multi-decade highs and far above the Fed’s 2% annual inflation target. As a result, the Fed indicated that it would continue taking aggressive action to curb inflation, though such measures could “bring pain to households and businesses.” The remarks deflated investor optimism that the Fed would pause rate hikes in the second half of 2022 and increased the likelihood of a US recession. In this environment, US stocks had negative double-digit returns of (11.23%) for the fiscal year ended August 31, 2022, measured by the S&P 500 Index.4

 

1 

Source: US Bureau of Labor Statistics

2 

Source: Bloomberg LP

3 

Source: US Federal Reserve

4 

Source: Lipper Inc.

 

 

  3  

 


 

 

DWAS    Management’s Discussion of Fund Performance
   Invesco DWA SmallCap Momentum ETF (DWAS)

 

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

Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (“Dorsey Wright” or the “Index Provider”) selects securities of small capitalization companies trading on U.S. exchanges for inclusion in the Index pursuant to a proprietary methodology that is designed to identify securities that demonstrate powerful relative strength (or momentum) characteristics. “Relative strength” is an investing technique that compares the performance of a particular asset to the overall performance of the market. The Index Provider assigns a relative strength score to each eligible security by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider selects securities for inclusion in the Index from an eligible universe of the constituents ranked between 1,001 and 3,000 by market capitalization within the NASDAQ US Benchmark Index. The Index Provider assigns a relative strength score to each eligible security and selects approximately 200 securities with the greatest scores for inclusion in the Index. Component security weights are based on relative scores, with securities with higher scores receiving larger weights in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (12.15)%. On a net asset value (“NAV”) basis, the Fund returned (12.25)%. During the same time period, the Index returned (11.66)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended August 31, 2022, the energy sector contributed most significantly to the Fund’s return, followed by the materials and utilities sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and financials sectors, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included LSB Industries, Inc., a materials company (no longer held at fiscal year-end), and SM Energy Co., an energy company (portfolio average weight of 1.84%). Positions that detracted most significantly from the Fund’s return included Hovnanian Enterprises, Inc., Class A, a consumer discretionary company (no longer held at fiscal year-end), and Aspen Aerogels Inc, an energy company (no longer held at fiscal year-end).

Sector Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Energy      25.57  
Industrials      18.41  
Financials      13.12  
Health Care      12.51  
Consumer Discretionary      10.91  
Information Technology      6.34  
Materials      4.71  
Consumer Staples      3.54  
Sector Types Each Less Than 3%      4.80  
Money Market Funds Plus Other Assets Less Liabilities      0.09  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
CONSOL Energy, Inc.      1.84  
SM Energy Co.      1.66  
Alpha Metallurgical Resources, Inc.      1.60  
Weatherford International PLC      1.49  
Permian Resources Corp., Class A      1.34  
Veritiv Corp.      1.31  
Clearfield, Inc.      1.26  
Kinsale Capital Group, Inc.      1.19  
SilverBow Resources, Inc.      1.19  
Dillard’s, Inc., Class A      1.17  
Total      14.05  

 

*

Excluding money market fund holdings.

 

 

  4  

 


 

Invesco DWA SmallCap Momentum ETF (DWAS) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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  
Dorsey Wright® SmallCap Technical Leaders Index     (11.66 )%      13.57     46.48     12.36     79.11     12.42     222.44       12.61     232.54
Russell 2000® Index     (17.88     8.59       28.05       6.95       39.92       10.01       159.54         10.04       163.16  
Fund                    
NAV Return     (12.25     12.96       44.12       11.74       74.19       11.78       204.49         11.97       213.87  
Market Price Return     (12.15     12.96       44.14       11.75       74.27       11.76       203.99         11.96       213.57  

 

Fund Inception: July 19, 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. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.60% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  5  

 


 

 

PSCD    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

 

As an index fund, the Invesco S&P SmallCap Consumer Discretionary ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Consumer Discretionary Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the consumer discretionary sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing consumer goods and services that are cyclical in nature, including, but not limited to, household durables, leisure products and services, apparel and luxury goods, computers and electronics, automobiles and auto components, and hotel and restaurant services. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (27.91)%. On a net asset value (“NAV”) basis, the Fund returned (28.01)%. During the same time period, the Index returned (27.84)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the specialty retail industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the household durables, specialty retail and hotels, restaurants and leisure industries.

For the fiscal year ended August 31, 2022, no industry contributed to the Fund’s return. The specialty retail industry detracted most significantly from the Fund’s return during the

period, followed by the household durables and hotels, restaurants & leisure industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Academy Sports & Outdoors, Inc., a specialty retail company (portfolio average weight of 1.39%) and National Vision Holdings, Inc., a specialty retail company (portfolio average weight of 0.47%). Positions that detracted most significantly from the Fund’s return included Sonos, Inc., a household durables company (portfolio average weight of 1.04%), and Rent-A-Center, Inc., a specialty retail company (portfolio average weight of 1.76%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Specialty Retail      34.85  
Household Durables      19.91  
Hotels, Restaurants & Leisure      13.95  
Auto Components      10.73  
Textiles, Apparel & Luxury Goods      8.00  
Diversified Consumer Services      7.20  
Industry Types Each Less Than 3%      5.26  
Money Market Funds Plus Other Assets Less Liabilities      0.10  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
Asbury Automotive Group, Inc.      3.46  
Academy Sports & Outdoors, Inc.      3.30  
Signet Jewelers Ltd.      2.78  
Group 1 Automotive, Inc.      2.66  
LCI Industries      2.64  
Meritage Homes Corp.      2.58  
National Vision Holdings, Inc.      2.43  
Dorman Products, Inc.      2.30  
Steven Madden Ltd.      1.96  
Installed Building Products, Inc.      1.88  
Total      25.99  

 

*

Excluding money market fund holdings.

 

 

  6  

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

   

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 SmallCap 600® Capped Consumer Discretionary Index     (27.84 )%      13.43     45.95     10.60     65.53     11.02     184.47       10.84     258.30
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (28.01     13.21       45.11       10.40       64.04       10.80       178.94         10.61       248.93  
Market Price Return     (27.91     13.21       45.09       10.42       64.13       10.79       178.71         10.61       249.11  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  7  

 


 

 

PSCC    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Consumer Staples ETF (PSCC)

 

As an index fund, the Invesco S&P SmallCap Consumer Staples ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Consumer Staples Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the consumer staples sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing consumer goods and services that have non-cyclical characteristics, including, but not limited to, tobacco, food and beverage, and non-discretionary retail, such as non-durable household goods and personal products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned 1.62%. On a net asset value (“NAV”) basis, the Fund returned 1.48%. During the same time period, the Index returned 1.70%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the food products industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the beverages and food products industries, respectively.

For the fiscal year ended August 31, 2022, the beverages industry contributed most significantly to the Fund’s return, followed by the food & staples retailing and food products industries, respectively. The personal products industry detracted

most significantly from the Fund’s return during the period, followed by the household products industry.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Cal-Maine Foods, Inc., a food products company (portfolio average weight of 3.61%), and Celsius Holdings, Inc., a beverages company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Medifast, Inc., a personal products company (portfolio average weight of 6.18%), and WD-40 Co., a household products company (portfolio average weight of 6.18%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Food Products      41.65  
Personal Products      17.70  
Food & Staples Retailing      17.65  
Household Products      10.58  
Beverages      6.31  
Tobacco      6.03  
Money Market Funds Plus Other Assets Less Liabilities      0.08  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
Hostess Brands, Inc.      7.59  
Simply Good Foods Co. (The)      6.39  
TreeHouse Foods, Inc.      6.18  
WD-40 Co.      6.12  
United Natural Foods, Inc.      6.08  
J&J Snack Foods Corp.      5.28  
Edgewell Personal Care Co.      4.87  
Cal-Maine Foods, Inc.      4.76  
elf Beauty, Inc.      4.33  
PriceSmart, Inc.      3.61  
Total      55.21  

 

*

Excluding money market fund holdings.

 

 

  8  

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Consumer Staples Index     1.70     14.59     50.47     10.37     63.80     12.99     239.29       13.55     383.37
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     1.48       14.35       49.52       10.14       62.05       12.70       230.65         13.28       369.37  
Market Price Return     1.62       14.47       50.01       10.18       62.40       12.70       230.63         13.29       369.47  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  9  

 


 

 

PSCE    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Energy ETF (PSCE)

 

As an index fund, the Invesco S&P SmallCap Energy ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Energy Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the energy sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing, distributing or servicing energy related products and equipment, including relating to oil and gas exploration and production, refining, marketing, storage and transportation; and manufacturing equipment and the production and mining of coal, related products and other consumable fuels related to the generation of energy. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned 53.18%. On a net asset value (“NAV”) basis, the Fund returned 53.42%. During the same time period, the Index returned 53.93%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, the effects of which were compounded during a time period of high returns.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the oil, gas & consumable fuels industry.

For the fiscal year ended August 31, 2022, the oil, gas & consumable fuels industry contributed most significantly to the Fund’s return, followed by the energy equipment & services industry. No industry detracted from the Fund’s return during the period.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Matador Resources Co., an oil, gas & consumable fuels company (no longer held at fiscal year-end), and Range Resources Corp., an oil, gas & consumable fuels company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Core Laboratories N.V., an energy equipment & services company (portfolio average weight of 2.41%), and DMC Global, Inc., an energy equipment & services company (portfolio average weight of 1.25%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Oil, Gas & Consumable Fuels      60.68  
Energy Equipment & Services      38.34  
Money Market Funds Plus Other Assets Less Liabilities      0.98  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
SM Energy Co.      12.49  
Civitas Resources, Inc.      11.29  
Helmerich & Payne, Inc.      10.47  
CONSOL Energy, Inc.      5.92  
PBF Energy, Inc., Class A      5.61  
Green Plains, Inc.      4.82  
Patterson-UTI Energy, Inc.      4.76  
Callon Petroleum Co.      4.70  
World Fuel Services Corp.      4.18  
Nabors Industries Ltd.      3.01  
Total      67.25  

 

*

Excluding money market fund holdings.

 

 

  10  

 


 

Invesco S&P SmallCap Energy ETF (PSCE) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Energy Index     53.93     13.61     46.65     (3.13 )%      (14.68 )%      (10.64 )%      (67.52 )%        (6.68 )%      (57.54 )% 
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     53.42       13.33       45.54       (3.40     (15.89     (10.86     (68.34       (6.93     (58.96
Market Price Return     53.18       13.27       45.33       (3.42     (15.96     (10.88     (68.39       (6.92     (58.90

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  11  

 


 

 

PSCF    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Financials ETF (PSCF)

 

As an index fund, the Invesco S&P SmallCap Financials ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Financials & Real Estate Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the financials and real estate sectors, as defined by the Global Industry Classification Standard (“GICS®”). These companies, which may include real estate investment trusts (“REITs”), are principally engaged in the business of providing financial services and products, including banking, diversified financials, insurance and REITs and real estate management and development. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (11.67)%. On a net asset value (“NAV”) basis, the Fund returned (11.81)%. During the same time period, the Index returned (11.60)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the banks industry and most underweight in the machinery industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the banks industry.

For the fiscal year ended August 31, 2022, the banks industry was the only industry to contribute to the Fund’s return. The equity REITs industry detracted most significantly from the Fund’s return during the period, followed by the consumer finance and insurance industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included BancFirst Corp., a banks company (portfolio average weight of 0.59%), and CVB Financial Corp., a banks company (portfolio average weight of 1.16%). Positions that detracted most significantly from the Fund’s return included Innovative Industrial Properties, Inc., an equity REITS company (portfolio average weight of 1.75%), and Green Dot Corp., Class A, a consumer finance company (portfolio average weight of 0.68%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Banks      40.12  
Equity REITs      27.32  
Insurance      10.16  
Thrifts & Mortgage Finance      8.45  
Mortgage REITs      5.22  
Capital Markets      3.72  
Consumer Finance      3.13  
Real Estate Management & Development      1.76  
Money Market Funds Plus Other Assets Less Liabilities      0.12  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
Agree Realty Corp.      2.44  
ServisFirst Bancshares, Inc.      1.78  
Independent Bank Corp.      1.58  
United Community Banks, Inc.      1.52  
Community Bank System, Inc.      1.52  
CVB Financial Corp.      1.50  
First Hawaiian, Inc.      1.42  
Assured Guaranty Ltd.      1.41  
Essential Properties Realty Trust, Inc.      1.36  
Mr. Cooper Group, Inc.      1.35  
Total      15.88  

 

*

Excluding money market fund holdings.

 

 

  12  

 


 

Invesco S&P SmallCap Financials ETF (PSCF) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Financials & Real Estate Index     (11.60 )%      2.47     7.60     3.90     21.06     8.69     130.13       8.87     186.85
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (11.81     2.28       6.99       3.69       19.84       8.43       124.74         8.60       177.95  
Market Price Return     (11.67     2.34       7.19       3.70       19.92       8.43       124.73         8.60       177.94  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  13  

 


 

 

PSCH    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Health Care ETF (PSCH)

 

As an index fund, the Invesco S&P SmallCap Health Care ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Health Care Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the health care sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing healthcare-related products, facilities, equipment and services, including in areas such as biotechnology, pharmaceuticals, life sciences, medical technology and supplies. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (26.24)%. On a net asset value (“NAV”) basis, the Fund returned (26.41)%. During the same time period, the Index returned (26.41)%. During the fiscal year, the Fund fully replicated the components of the Index. The fees and operating expenses that the Fund incurred during the period were offset by proceeds from the securities lending program in which the Fund participates and the contribution of the Fund being underweight a single security relative to the Index due to holdings restrictions enacted on the Fund, such that the Fund’s performance, on a NAV basis, matched the return of the Index.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the health care providers & services industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the health care providers & services, biotechnology and life sciences tools & services industries, respectively.

For the fiscal year ended August 31, 2022, no industry contributed to the Fund’s return. The health care providers & services industry detracted most significantly from the Fund’s

return during the period, followed by the health care equipment & supplies and biotechnology industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Lantheus Holdings, Inc., a health care equipment & supplies company (portfolio average weight of 2.75%), and Cytokinetics, Inc., a biotechnology company (portfolio average weight of 2.81%). Positions that detracted most significantly from the Fund’s return included NeoGenomics, Inc., a life sciences tools & services company (portfolio average weight of 2.35%), and Omnicell, Inc., a health care equipment & supplies company (no longer held at fiscal year-end).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Health Care Providers & Services      29.65  
Health Care Equipment & Supplies      27.75  
Biotechnology      22.78  
Pharmaceuticals      13.80  
Health Care Technology      4.83  
Life Sciences Tools & Services      1.18  
Money Market Funds Plus Other Assets Less Liabilities      0.01  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
Lantheus Holdings, Inc.      5.07  
AMN Healthcare Services, Inc.      4.30  
Cytokinetics, Inc.      4.25  
Ensign Group, Inc. (The)      4.21  
Merit Medical Systems, Inc.      2.83  
Select Medical Holdings Corp.      2.48  
CONMED Corp.      2.45  
Prestige Consumer Healthcare, Inc.      2.38  
Corcept Therapeutics, Inc.      2.32  
Pacira BioSciences, Inc.      2.24  
Total      32.53  

 

*

Excluding money market fund holdings.

 

 

  14  

 


 

Invesco S&P SmallCap Health Care ETF (PSCH) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Health Care Index     (26.41 )%      7.22     23.26     10.07     61.53     15.16     310.28       15.61     504.05
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (26.41     7.02       22.59       9.84       59.87       14.88       300.35         15.32       485.49  
Market Price Return     (26.24     7.04       22.65       9.84       59.92       14.87       300.00         15.33       486.09  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares.

See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  15  

 


 

 

PSCI    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Industrials ETF (PSCI)

 

As an index fund, the Invesco S&P SmallCap Industrials ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Industrials Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the industrials sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing capital goods, such as manufacturing aerospace and defense products, building products, electrical equipment, and machinery; providing commercial and professional services; and transportation such as railroads, air freight and logistics, airlines, and trucking. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (7.43)%. On a net asset value (“NAV”) basis, the Fund returned (7.52)%. During the same time period, the Index returned (7.24)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the machinery industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocations to the trading companies & distributors, air freight & logistics and construction & engineering industries, respectively.

For the fiscal year ended August 31, 2022, the air freight & logistics industry contributed most significantly to the Fund’s return, followed by the trading companies & distributors and construction & engineering industries, respectively. The commercial services & supplies industry detracted most

significantly from the Fund’s return during the period, followed by the machinery and airlines industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Mueller Industries, Inc., a machinery company (portfolio average weight of 1.95%), and Meritor, Inc., a machinery company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Resideo Technologies, Inc., a building products company (portfolio average weight of 2.15%), and Allegiant Travel Co., an airlines company (portfolio average weight of 1.47%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Machinery      26.95  
Commercial Services & Supplies      12.60  
Building Products      12.07  
Professional Services      9.35  
Trading Companies & Distributors      8.27  
Aerospace & Defense      7.65  
Construction & Engineering      7.57  
Air Freight & Logistics      5.44  
Industry Types Each Less Than 3%      10.01  
Money Market Funds Plus Other Assets Less Liabilities      0.09  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
UFP Industries, Inc.      3.41  
Exponent, Inc.      3.33  
Applied Industrial Technologies, Inc.      2.79  
Comfort Systems USA, Inc.      2.47  
Mueller Industries, Inc.      2.46  
Franklin Electric Co., Inc.      2.31  
Korn Ferry      2.25  
John Bean Technologies Corp.      2.25  
Aerojet Rocketdyne Holdings, Inc.      2.21  
ABM Industries, Inc.      2.12  
Total      25.60  

 

*

Excluding money market fund holdings.

 

 

  16  

 


 

Invesco S&P SmallCap Industrials ETF (PSCI) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

   

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 SmallCap 600® Capped Industrials Index     (7.24 )%      11.76     39.60     10.64     65.78     12.82     234.14       11.69     293.78
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (7.52     11.46       38.46       10.32       63.41       12.51       225.12         11.38       280.28  
Market Price Return     (7.43     11.43       38.35       10.34       63.53       12.50       224.70         11.38       280.41  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  17  

 


 

 

PSCT    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Information Technology ETF (PSCT)

 

As an index fund, the Invesco S&P SmallCap Information Technology ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Information Technology Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the information technology sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of providing information technology-related products and services, including, but not limited to, developing and producing software; manufacturing communication equipment and products, and electronic equipment and instruments; providing commercial electronic data processing; and manufacturing semiconductors and related products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (16.79)%. On a net asset value (“NAV”) basis, the Fund returned (16.87)%. During the same time period, the Index returned (16.65)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the electronic equipment, instruments & components industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the semiconductors & semiconductor equipment and software industries, respectively.

For the fiscal year ended August 31, 2022, the communications equipment industry was the only industry to contribute to the Fund’s return. The semiconductors & semiconductor equipment industry detracted most significantly from the Fund’s return during the period, followed by the software and technology hardware storage & peripherals industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included Vonage Holdings Corp., a diversified telecommunication services company (no longer held at fiscal year-end), and ExlService Holdings, Inc., an IT services company (portfolio average weight of 3.49%). Positions that detracted most significantly from the Fund’s return included LivePerson, Inc., a software company (portfolio average weight of 1.50%), and 3D Systems Corp., a technology hardware, storage & peripherals company (portfolio average weight of 1.69%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Electronic Equipment, Instruments & Components      31.66  
Semiconductors & Semiconductor Equipment      23.68  
Software      18.34  
Communications Equipment      11.95  
IT Services      11.77  
Technology Hardware, Storage & Peripherals      2.60  
Money Market Funds Plus Other Assets Less Liabilities      0.00  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
ExlService Holdings, Inc.      4.74  
Rogers Corp.      3.98  
SPS Commerce, Inc.      3.74  
Fabrinet      3.21  
Onto Innovation, Inc.      2.98  
Advanced Energy Industries, Inc.      2.86  
Diodes, Inc.      2.73  
Viavi Solutions, Inc.      2.72  
Insight Enterprises, Inc.      2.71  
Alarm.com Holdings, Inc.      2.60  
Total      32.27  

 

*

Excluding money market fund holdings.

 

 

  18  

 


 

Invesco S&P SmallCap Information Technology ETF (PSCT) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Information Technology Index     (16.65 )%      14.17     48.83     10.97     68.27     15.66     328.53       14.06     411.06
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (16.87     13.86       47.61       10.69       66.16       15.35       317.20         13.75       393.85  
Market Price Return     (16.79     13.93       47.88       10.74       66.52       15.35       317.20         13.76       394.53  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  19  

 


 

 

PSCM    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Materials ETF (PSCM)

 

As an index fund, the Invesco S&P SmallCap Materials ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Materials Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the basic materials sector, as defined by the Global Industry Classification Standard (“GICS®”). These companies are principally engaged in the business of producing raw materials, including producing and manufacturing chemical products; manufacturing construction materials, containers, and packaging; mining metals and the production of related products; and manufacturing paper and forest products. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (3.60)%. On a net asset value (“NAV”) basis, the Fund returned (3.69)%. During the same time period, the Index returned (3.55)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the chemicals industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight allocation to the chemicals and metals & mining industries, respectively.

For the fiscal year ended August 31, 2022, no industry contributed to the Fund’s return. The chemicals industry detracted most significantly from the Fund’s return during the period, followed by the containers & packaging and paper & forest products industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included ATI Inc., a metals & mining company (portfolio average weight of 5.37%), and Livent Corp., a chemicals company (portfolio average weight of 7.74%). Positions that detracted most significantly from the Fund’s return included Quaker Chemical Corp., a chemicals company (portfolio average weight of 4.99%), and Trinseo PLC, a chemicals company (portfolio average weight of 3.49%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Chemicals      54.87  
Metals & Mining      33.13  
Paper & Forest Products      6.41  
Containers & Packaging      5.54  
Money Market Funds Plus Other Assets Less Liabilities      0.05  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
Livent Corp.      10.54  
Balchem Corp.      8.57  
ATI, Inc.      7.52  
H.B. Fuller Co.      6.97  
Arconic Corp.      5.40  
Quaker Chemical Corp.      4.77  
Stepan Co.      4.51  
Innospec, Inc.      4.40  
O-I Glass, Inc.      4.12  
Materion Corp.      3.61  
Total      60.41  

 

*

Excluding money market fund holdings.

 

 

  20  

 


 

Invesco S&P SmallCap Materials ETF (PSCM) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Materials Index     (3.55 )%      17.19     60.93     8.13     47.82     9.59     149.87       8.82     185.21
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (3.69     17.05       60.37       7.96       46.67       9.34       144.16         8.56       176.94  
Market Price Return     (3.60     17.05       60.36       8.01       46.97       9.31       143.61         8.56       176.80  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  21  

 


 

 

PSCU    Management’s Discussion of Fund Performance
   Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU)

 

As an index fund, the Invesco S&P SmallCap Utilities & Communication Services ETF (the “Fund”) is passively managed and seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Utilities & Communication Services Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices, LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to measure the performance of securities of small-capitalization U.S. companies in the utilities and communication services sectors, as defined by the Global Industry Classification Standard (“GICS®”). The utilities companies are principally engaged in providing either energy, water, electric or natural gas utilities. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater. The communication services sector includes companies that facilitate communication or offer related content and information through various types of media and is comprised of companies from the following industries: diversified telecommunications services; wireless telecommunication services; media; entertainment; and interactive media and services. The Index selects constituents from the S&P SmallCap 600® Index (the “Benchmark Index”), which reflects the small-capitalization segment of the U.S. equity market. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended August 31, 2022, on a market price basis, the Fund returned (11.23)%. On a net asset value (“NAV”) basis, the Fund returned (11.42)%. During the same time period, the Index returned (11.21)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period which were partially offset by proceeds from the securities lending program in which the Fund participates.

During this same time period, the Benchmark Index returned (12.12)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 600 small-cap securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the overall U.S. small-cap stock market.

Relative to the Benchmark Index, the Fund was most overweight in the water utilities industry and most underweight in the banks industry during the fiscal year ended August 31, 2022. The majority of the Fund’s outperformance relative to the Benchmark

Index during the period can be attributed to the Fund’s overweight allocations to the gas utilities and multi-utilities industries, respectively.

For the fiscal year ended August 31, 2022, the gas utilities industry contributed most significantly to the Fund’s return, followed by the multi-utilities industry. The media industry detracted most significantly from the Fund’s return during the period, followed by the wireless telecommunication services and diversified telecommunication services industries, respectively.

Positions that contributed most significantly to the Fund’s return for the fiscal year ended August 31, 2022, included South Jersey Industries, Inc., a gas utilities company (portfolio average weight of 8.99%), and Meredith Corp., a media company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Loyalty Ventures, Inc., a media company (no longer held at fiscal year-end), and AMC Networks, Inc., Class A, a media company (portfolio average weight of 3.39%).

 

Industry Breakdown
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Water Utilities      20.22  
Gas Utilities      18.76  
Media      14.86  
Interactive Media & Services      12.57  
Wireless Telecommunication Services      10.30  
Multi-Utilities      9.84  
Diversified Telecommunication Services      8.37  
Entertainment      4.94  
Money Market Funds Plus Other Assets Less Liabilities      0.14  
Top Ten Fund Holdings*
(% of the Fund’s Net Assets)
as of August 31, 2022
 
Security   
South Jersey Industries, Inc.      10.62  
California Water Service Group      8.06  
American States Water Co.      7.86  
Avista Corp.      7.54  
Cogent Communications Holdings, Inc.      5.82  
Yelp, Inc.      5.06  
Telephone & Data Systems, Inc.      4.43  
Middlesex Water Co.      4.30  
Chesapeake Utilities Corp.      4.28  
TechTarget, Inc.      4.28  
Total      62.25  

 

*

Excluding money market fund holdings.

 

 

  22  

 


 

Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU) (continued)

 

Growth of a $10,000 Investment

 

 

LOGO

Fund Performance History as of August 31, 2022

 

    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 SmallCap 600® Capped Utilities & Communication Services Index     (11.21 )%      5.58     17.68     3.82     20.61     9.98     158.99       10.35     239.17
S&P SmallCap 600® Index     (12.12     10.40       34.56       8.65       51.40       11.50       196.93         11.29       276.48  
Fund                    
NAV Return     (11.42     5.28       16.70       3.60       19.34       9.71       152.63         10.07       228.48  
Market Price Return     (11.23     5.32       16.83       3.60       19.32       9.69       152.25         10.07       228.52  

 

Fund Inception: April 7, 2010

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 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund

distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.

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

Notes Regarding Indexes and Fund Performance History:

 

-

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

 

 

  23  

 


 

Liquidity Risk Management Program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the Funds have adopted and implemented a liquidity risk management program (the “Program”). The Program is reasonably designed to assess and manage the Funds’ liquidity risk, which is the risk that the Funds could not meet redemption requests without significant dilution of remaining investors’ interests in the Funds. The Board of Trustees of the Funds (the “Board”) has appointed Invesco Capital Management LLC (“Invesco”), the Funds’ investment adviser, as the Program’s administrator, and Invesco has delegated oversight of the Program to the Liquidity Risk Management Committee (the “Committee”), which is composed of senior representatives from relevant business groups at Invesco and its affiliates.

As required by the Liquidity Rule, the Program includes policies and procedures providing for an assessment, no less frequently than annually, of the Funds’ liquidity risk that takes into account, as relevant to the Funds’ liquidity risk: (1) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (2) short-term and long-term cash flow projections for the Funds during both normal and reasonably foreseeable stressed conditions; (3) each Fund’s holdings of cash and cash equivalents and any borrowing arrangements; (4) the relationship between the Funds’ portfolio liquidity and the way in which, and the prices and spreads at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants; and (5) the effect of the composition of baskets on the overall liquidity of each Fund’s portfolio. The Liquidity Rule also requires the classification of each Fund’s investments into categories that reflect the assessment of their relative liquidity under current market conditions. Each Fund classifies its investments into one of four categories defined in the Liquidity Rule: “Highly Liquid,” “Moderately Liquid,” “Less Liquid,” and “Illiquid.” Funds that are not invested primarily in “Highly Liquid Investments” that are assets (cash or investments that are reasonably expected to be convertible into cash within three business days without significantly changing the market value of the investment) are required to establish a “Highly Liquid Investment Minimum” (“HLIM”), which is the minimum percentage of net assets that must be invested in Highly Liquid Investments. Funds with HLIMs have procedures for addressing HLIM shortfalls, including reporting to the Board and the SEC (on a non-public basis) as required by the Program and the Liquidity Rule. In addition, a Fund may not acquire an investment if, immediately after the acquisition, over 15% of such Fund’s net assets would consist of “Illiquid Investments” that are assets (an investment that cannot reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Liquidity Rule and the Program also require reporting to the Board and the SEC (on a non-public basis) if a Fund’s holdings of Illiquid Investments exceed 15% of such Fund’s assets.

At a meeting held on March 15, 2022, the Committee presented a report to the Board that addressed the operation of the Program and assessed the Program’s adequacy and effectiveness of implementation (the “Report”). The Report covered the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). The Report discussed notable events affecting liquidity over the Program Reporting Period, including the impact of the coronavirus pandemic on the Funds and the overall market. The Report noted that there were no material changes to the Program during the Program Reporting Period.

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

 

   

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

 

   

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

 

   

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

 

   

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

 

   

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

 

    24    

 

 

 

 


 

Invesco DWA SmallCap Momentum ETF (DWAS)

August 31, 2022

Schedule of Investments(a)

 

         Shares                Value        

Common Stocks & Other Equity Interests-99.91%

 

Communication Services-2.87%

     

DHI Group, Inc.(b)

     288,953      $ 1,473,660  

Gogo, Inc.(b)(c)

     82,032        1,218,996  

Iridium Communications, Inc.(b)

     51,318        2,278,006  

Playstudios, Inc.(b)(c)

     223,978        810,800  

Radius Global Infrastructure, Inc.,
Class A(b)(c)

     89,643        1,234,384  

Stagwell, Inc.(b)(c)

     320,797        2,175,004  

TechTarget, Inc.(b)(c)

     30,933        2,007,552  
     

 

 

 
        11,198,402  
     

 

 

 

Consumer Discretionary-10.91%

     

Academy Sports & Outdoors, Inc.(c)

     38,257        1,648,112  

Adient PLC(b)(c)

     45,196        1,500,507  

Asbury Automotive Group, Inc.(b)(c)

     8,558        1,493,200  

Bluegreen Vacations Holding Corp.

     59,262        1,235,020  

Build-A-Bear Workshop, Inc.(c)

     257,843        3,950,155  

Chico’s FAS, Inc.(b)(c)

     489,278        2,779,099  

Dave & Buster’s Entertainment, Inc.(b)

     57,453        2,375,107  

Designer Brands, Inc., Class A(c)

     104,386        1,780,825  

Dillard’s, Inc., Class A(c)

     15,356        4,549,061  

Dine Brands Global, Inc.(c)

     21,519        1,433,165  

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

     96,226        2,142,953  

Genesco, Inc.(b)

     30,094        1,702,718  

Golden Entertainment, Inc.(b)(c)

     79,407        3,038,112  

Group 1 Automotive, Inc.

     8,979        1,603,560  

H&R Block, Inc.

     40,800        1,836,000  

MasterCraft Boat Holdings, Inc.(b)

     66,204        1,594,854  

Modine Manufacturing Co.(b)

     127,090        1,903,808  

Movado Group, Inc.

     46,685        1,488,785  

Oxford Industries, Inc.(c)

     14,982        1,599,029  

Playa Hotels & Resorts N.V.(b)

     209,394        1,373,625  

Vista Outdoor, Inc.(b)(c)

     54,830        1,541,820  
     

 

 

 
        42,569,515  
     

 

 

 

Consumer Staples-3.54%

     

Chefs’ Warehouse, Inc. (The)(b)

     41,670        1,389,278  

Coca-Cola Consolidated, Inc.

     2,672        1,267,410  

elf Beauty, Inc.(b)

     51,872        1,977,879  

Grocery Outlet Holding Corp.(b)(c)

     33,222        1,332,867  

Ingles Markets, Inc., Class A

     15,575        1,363,280  

MGP Ingredients, Inc.

     15,740        1,722,900  

National Beverage Corp.(c)

     29,979        1,662,635  

SpartanNash Co.

     45,050        1,370,871  

United Natural Foods, Inc.(b)(c)

     38,575        1,700,386  
     

 

 

 
        13,787,506  
     

 

 

 

Energy-25.57%

     

Antero Midstream Corp.

     163,876        1,650,231  

Arch Resources, Inc.

     18,839        2,742,582  

Archrock, Inc.(c)

     163,515        1,208,376  

Berry Corp.(c)

     174,659        1,598,130  

Brigham Minerals, Inc., Class A

     52,163        1,551,849  

California Resources Corp.

     40,954        2,046,062  

Callon Petroleum Co.(b)(c)

     28,202        1,200,277  

ChampionX Corp.(c)

     64,719        1,411,521  

Chord Energy Corp.

     15,910        2,252,060  

Civitas Resources, Inc.(c)

     28,264        1,899,058  

Comstock Resources, Inc.(b)(c)

     129,002        2,528,439  
         Shares                Value        

Energy-(continued)

     

CONSOL Energy, Inc.

     100,151      $ 7,188,839  

CVR Energy, Inc.

     50,060        1,634,960  

Delek US Holdings, Inc.(c)

     49,894        1,409,505  

Denbury, Inc.(b)(c)

     27,221        2,420,764  

Earthstone Energy, Inc., Class A(b)(c)

     202,017        3,070,658  

Evolution Petroleum Corp.

     229,811        1,594,888  

Green Plains, Inc.(b)(c)

     72,525        2,656,591  

Helmerich & Payne, Inc.

     34,603        1,479,278  

Kinetik Holdings, Inc., Class A(c)

     97,862        3,608,172  

Kosmos Energy Ltd. (Ghana)(b)(c)

     300,245        2,122,732  

Magnolia Oil & Gas Corp., Class A(c)

     121,801        2,907,390  

NACCO Industries, Inc., Class A

     32,111        1,444,032  

NexTier Oilfield Solutions, Inc.(b)

     229,932        2,154,463  

Noble Corp.(b)

     44,333        1,345,507  

Patterson-UTI Energy, Inc.

     160,962        2,398,334  

PBF Energy, Inc., Class A(b)

     79,909        2,729,691  

Peabody Energy Corp.(b)(c)

     66,964        1,651,332  

Permian Resources Corp., Class A(b)(c)

     635,256        5,228,157  

ProPetro Holding Corp.(b)

     126,095        1,155,030  

Ranger Oil Corp., Class A(c)

     66,238        2,582,620  

Riley Exploration Permian, Inc.

     49,768        1,251,168  

Select Energy Services, Inc., Class A(b)

     175,853        1,250,315  

SilverBow Resources, Inc.(b)

     116,354        4,626,235  

Sitio Royalties Corp.(c)

     59,257        1,507,498  

SM Energy Co.(c)

     146,522        6,457,225  

Solaris Oilfield Infrastructure, Inc., Class A

     114,589        1,226,102  

Talos Energy, Inc.(b)

     74,268        1,539,576  

Tidewater, Inc.(b)(c)

     62,138        1,376,978  

VAALCO Energy, Inc.

     461,211        2,310,667  

Valaris Ltd.(b)(c)

     29,833        1,520,886  

Weatherford International PLC(b)(c)

     206,380        5,807,533  
     

 

 

 
        99,745,711  
     

 

 

 

Financials-13.12%

     

A-Mark Precious Metals, Inc.(c)

     115,440        3,568,250  

Amerant Bancorp, Inc.(c)

     49,277        1,290,565  

Assured Guaranty Ltd.

     25,174        1,285,636  

BancFirst Corp.(c)

     14,532        1,567,422  

BCB Bancorp, Inc.

     76,460        1,376,280  

Coastal Financial Corp.(b)(c)

     37,286        1,498,897  

Cowen, Inc., Class A

     57,143        2,197,148  

Ellington Financial, Inc.

     97,101        1,425,443  

Encore Capital Group, Inc.(b)(c)

     23,576        1,289,136  

Esquire Financial Holdings, Inc.

     39,932        1,492,658  

Farmers & Merchants Bancorp, Inc.(c)

     37,524        1,071,686  

First Bancorp

     102,205        1,461,532  

First Business Financial Services, Inc.

     41,318        1,375,063  

First Internet Bancorp

     36,585        1,341,572  

First Merchants Corp.

     37,693        1,500,935  

Greene County Bancorp, Inc.

     28,897        1,537,320  

Hancock Whitney Corp.

     30,696        1,480,468  

Kinsale Capital Group, Inc.(c)

     18,344        4,651,672  

LendingClub Corp.(b)

     109,429        1,430,237  

MVB Financial Corp.

     42,527        1,360,014  

Nexpoint Real Estate Finance, Inc.

     65,977        1,353,848  

Northeast Bank(c)

     40,689        1,577,513  

OFG Bancorp

     59,037        1,605,806  

Premier Financial Corp.(c)

     52,608        1,421,468  

 

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

 

    25    

 

 

 

 


 

Invesco DWA SmallCap Momentum ETF (DWAS)–(continued)

August 31, 2022

 

           Shares                  Value        

Financials-(continued)

     

RLI Corp.

     24,786      $ 2,720,511  

Seacoast Banking Corp. of Florida(c)

     40,951        1,323,536  

Selective Insurance Group, Inc.

     17,390        1,381,114  

ServisFirst Bancshares, Inc.

     17,803        1,501,861  

Stock Yards Bancorp, Inc.(c)

     22,570        1,495,488  

United Fire Group, Inc.

     39,696        1,168,253  

Unity Bancorp, Inc.

     50,464        1,414,506  
     

 

 

 
        51,165,838  
     

 

 

 

Health Care-12.51%

     

Acadia Healthcare Co., Inc.(b)

     25,277        2,070,945  

Catalyst Pharmaceuticals, Inc.(b)(c)

     210,588        2,851,361  

Chinook Therapeutics, Inc.(b)(c)

     72,792        1,514,074  

Cogent Biosciences, Inc.(b)

     146,003        2,407,589  

Cross Country Healthcare, Inc.(b)(c)

     76,676        1,946,037  

CTI BioPharma Corp.(b)(c)

     402,487        2,527,618  

Cytokinetics, Inc.(b)(c)

     33,558        1,777,232  

Day One Biopharmaceuticals, Inc.(b)(c)

     93,801        2,203,385  

Deciphera Pharmaceuticals, Inc.(b)

     109,631        1,779,311  

EQRx, Inc.(b)

     266,027        1,300,872  

Evolent Health, Inc., Class A(b)(c)

     73,345        2,695,429  

Evolus, Inc.(b)(c)

     122,602        1,178,205  

Harmony Biosciences Holdings, Inc.(b)(c)

     29,832        1,309,923  

Intra-Cellular Therapies, Inc.(b)

     26,199        1,316,762  

Lantheus Holdings, Inc.(b)

     39,704        3,128,675  

Meridian Bioscience, Inc.(b)

     47,007        1,531,958  

Merit Medical Systems, Inc.(b)

     26,190        1,551,234  

Multiplan Corp.(b)(c)

     249,452        878,071  

Option Care Health, Inc.(b)

     52,088        1,612,644  

Point Biopharma Global, Inc.(b)(c)

     168,107        1,639,043  

PROCEPT BioRobotics Corp.(b)(c)

     39,244        1,588,597  

SIGA Technologies, Inc.(c)

     117,819        1,776,711  

TransMedics Group, Inc.(b)

     49,056        2,552,384  

Tricida, Inc.(b)(c)

     178,269        2,231,928  

UFP Technologies, Inc.(b)(c)

     18,820        1,750,072  

Y-mAbs Therapeutics, Inc.(b)(c)

     104,885        1,686,551  
     

 

 

 
        48,806,611  
     

 

 

 

Industrials-18.41%

     

AAR Corp.(b)

     33,619        1,441,583  

Albany International Corp., Class A

     17,434        1,537,504  

ArcBest Corp.

     21,978        1,769,888  

Array Technologies, Inc.(b)

     108,278        2,263,010  

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

     27,537        1,512,057  

Boise Cascade Co.

     21,628        1,348,073  

CBIZ, Inc.(b)

     45,384        1,981,465  

Chart Industries, Inc.(b)(c)

     18,022        3,493,745  

CoreCivic, Inc.(b)

     122,753        1,169,836  

Covenant Logistics Group, Inc., Class A

     61,467        1,728,452  

CRA International, Inc.

     16,248        1,485,230  

CSW Industrials, Inc.

     14,006        1,773,160  

Eagle Bulk Shipping, Inc.(c)

     23,842        1,035,696  

Encore Wire Corp.(c)

     12,716        1,654,352  

Energy Recovery, Inc.(b)(c)

     71,786        1,646,771  

Federal Signal Corp.

     39,015        1,555,528  

Fluor Corp.(b)(c)

     54,856        1,450,393  

Genco Shipping & Trading Ltd.

     84,508        1,158,605  

GMS, Inc.(b)

     34,308        1,653,646  

Hudson Technologies, Inc.(b)

     472,454        3,921,368  

ICF International, Inc.

     14,790        1,502,072  

Kadant, Inc.(c)

     13,623        2,444,375  
           Shares                  Value        

Industrials-(continued)

     

McGrath RentCorp.

     18,068      $ 1,527,107  

MRC Global, Inc.(b)

     139,868        1,360,916  

NOW, Inc.(b)

     138,912        1,683,613  

NV5 Global, Inc.(b)(c)

     12,587        1,771,746  

PAM Transportation Services, Inc.(b)

     60,047        1,783,996  

Resideo Technologies, Inc.(b)

     82,489        1,717,421  

Rush Enterprises, Inc., Class A

     28,761        1,353,493  

Shoals Technologies Group, Inc.,
Class A(b)(c)

     72,207        1,904,099  

SPX Technologies, Inc.(b)(c)

     38,499        2,196,753  

Sterling Infrastructure, Inc.(b)

     61,305        1,550,403  

Titan International, Inc.(b)

     272,182        3,818,713  

Triton International Ltd. (Bermuda)

     27,674        1,649,094  

Univar Solutions, Inc.(b)

     51,581        1,300,873  

USA Truck, Inc.(b)

     113,182        3,549,388  

Veritiv Corp.(b)

     43,007        5,126,004  
     

 

 

 
        71,820,428  
     

 

 

 

Information Technology-6.34%

     

A10 Networks, Inc.

     95,680        1,329,952  

ADTRAN Holdings, Inc.

     73,869        1,716,715  

Avid Technology, Inc.(b)

     68,085        1,862,125  

Badger Meter, Inc.

     17,828        1,688,133  

Clearfield, Inc.(b)(c)

     42,302        4,911,685  

Cyxtera Technologies, Inc.(b)(c)

     93,576        593,272  

Digi International, Inc.(b)

     59,104        1,956,933  

DZS, Inc.(b)(c)

     79,953        1,064,174  

ExlService Holdings, Inc.(b)

     9,866        1,654,627  

Impinj, Inc.(b)(c)

     26,957        2,406,721  

Insight Enterprises, Inc.(b)(c)

     16,855        1,535,828  

Onto Innovation, Inc.(b)

     25,437        1,805,773  

PFSweb, Inc.(b)

     112,841        1,067,476  

Photronics, Inc.(b)

     66,792        1,122,106  
     

 

 

 
        24,715,520  
     

 

 

 

Materials-4.71%

     

Alpha Metallurgical Resources, Inc.

     39,705        6,239,641  

ATI, Inc.(b)(c)

     60,706        1,816,931  

Avient Corp.

     33,242        1,456,997  

Commercial Metals Co.

     37,343        1,512,765  

Ramaco Resources, Inc.

     216,649        2,283,480  

SunCoke Energy, Inc.

     195,411        1,287,759  

TimkenSteel Corp.(b)

     159,921        2,453,188  

Warrior Met Coal, Inc.

     40,868        1,330,253  
     

 

 

 
        18,381,014  
     

 

 

 

Real Estate-1.07%

     

Farmland Partners, Inc.(c)

     95,882        1,391,248  

Independence Realty Trust, Inc.

     66,326        1,290,041  

Tanger Factory Outlet Centers, Inc.(c)

     97,048        1,496,480  
     

 

 

 
        4,177,769  
     

 

 

 

Utilities-0.86%

     

Middlesex Water Co.

     17,399        1,544,509  

Montauk Renewables, Inc.(b)(c)

     102,592        1,821,008  
     

 

 

 
        3,365,517  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $363,386,243)

 

     389,733,831  
     

 

 

 

 

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

 

    26    

 

 

 

 


 

Invesco DWA SmallCap Momentum ETF (DWAS)–(continued)

August 31, 2022

    

 

           Shares                  Value        

Money Market Funds-0.05%

     

Invesco Government & Agency Portfolio, Institutional Class, 2.22%(d)(e)
(Cost $202,856)

     202,856      $ 202,856  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.96%
(Cost $363,589,099)

 

     389,936,687  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-24.12%

     

Invesco Private Government Fund,
2.29%(d)(e)(f)

     25,614,890        25,614,890  
           Shares                  Value        

Money Market Funds-(continued)

     

Invesco Private Prime Fund,
2.37%(d)(e)(f)

     68,437,358      $ 68,444,203  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $94,054,605)

        94,059,093  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-124.08%
(Cost $457,643,704)

 

     483,995,780  

OTHER ASSETS LESS LIABILITIES-(24.08)%

 

     (93,915,674
     

 

 

 

NET ASSETS-100.00%

 

   $ 390,080,106  
     

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at August 31, 2022.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2022.

 

    

Value

August 31, 2021

    

Purchases

at Cost

    

Proceeds

from Sales

    

Change in

Unrealized

Appreciation

    

Realized
Gain

(Loss)

    

Value

August 31, 2022

    

Dividend
Income

 
Investments in Affiliated Money Market Funds:                                                       
Invesco Government & Agency Portfolio, Institutional Class                $ -                     $ 11,980,373            $ (11,777,517                  $ -                     $ -           $ 202,856         $ 687  
Investments Purchased with Cash Collateral from Securities on Loan:                                                       
Invesco Private Government Fund         27,265,424              182,610,206              (184,260,740           -              -             25,614,890           140,999
Invesco Private Prime Fund         64,045,154              365,059,957              (360,641,590           4,488              (23,806           68,444,203           411,602
     

 

 

          

 

 

          

 

 

         

 

 

          

 

 

         

 

 

       

 

 

 
Total       $ 91,310,578            $ 559,650,536            $ (556,679,847         $ 4,488            $ (23,806         $ 94,261,949         $ 553,288  
     

 

 

          

 

 

          

 

 

         

 

 

          

 

 

         

 

 

       

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

(f) 

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

 

 

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

 

    27    

 

 

 

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)

August 31, 2022

Schedule of Investments(a)

 

           Shares                  Value        

Common Stocks & Other Equity Interests-99.90%

 

Auto Components-10.73%

     

American Axle & Manufacturing Holdings, Inc.(b)(c)

     25,760      $ 266,616  

Dorman Products, Inc.(b)

     6,369        577,350  

Gentherm, Inc.(b)(c)

     7,456        446,614  

LCI Industries

     5,719        662,661  

Motorcar Parts of America, Inc.(b)(c)

     4,297        63,853  

Patrick Industries, Inc.

     4,917        260,454  

Standard Motor Products, Inc.

     4,273        156,819  

XPEL, Inc.(b)(c)(d)

     3,728        255,480  
     

 

 

 
        2,689,847  
     

 

 

 

Automobiles-1.69%

     

Winnebago Industries, Inc.

     7,375        424,653  
     

 

 

 

Diversified Consumer Services-7.20%

     

Adtalem Global Education, Inc.(b)

     10,157        382,817  

American Public Education, Inc.(b)(c)

     4,242        43,820  

frontdoor, inc.(b)(c)

     18,508        434,568  

Perdoceo Education Corp.(b)(c)

     15,476        179,212  

Strategic Education, Inc.

     5,165        334,175  

Stride, Inc.(b)(c)

     9,620        366,907  

WW International, Inc.(b)

     12,026        62,776  
     

 

 

 
        1,804,275  
     

 

 

 

Hotels, Restaurants & Leisure-13.95%

     

BJ’s Restaurants, Inc.(b)

     5,274        132,272  

Bloomin’ Brands, Inc.(c)

     18,162        367,236  

Brinker International, Inc.(b)

     9,864        241,767  

Cheesecake Factory, Inc. (The)(c)

     11,046        338,229  

Chuy’s Holdings, Inc.(b)

     4,262        95,170  

Dave & Buster’s Entertainment, Inc.(b)(c)

     8,758        362,056  

Dine Brands Global, Inc.(c)

     3,769        251,015  

El Pollo Loco Holdings, Inc.(b)

     4,385        39,684  

Golden Entertainment, Inc.(b)

     4,565        174,657  

Jack in the Box, Inc.

     4,734        378,057  

Monarch Casino & Resort, Inc.(b)

     2,973        179,539  

Ruth’s Hospitality Group, Inc.(c)

     7,045        128,360  

Shake Shack, Inc., Class A(b)(c)

     8,825        420,599  

Six Flags Entertainment Corp.(b)(c)

     17,505        387,736  
     

 

 

 
        3,496,377  
     

 

 

 

Household Durables-19.91%

     

Cavco Industries, Inc.(b)

     1,917        448,597  

Century Communities, Inc.

     6,520        304,419  

Ethan Allen Interiors, Inc.(c)

     4,956        117,804  

Green Brick Partners, Inc.(b)(c)

     10,352        252,175  

Installed Building Products, Inc.

     5,207        471,546  

iRobot Corp.(b)(c)

     6,101        359,227  

La-Z-Boy, Inc.

     9,724        256,616  

LGI Homes, Inc.(b)(c)

     4,686        444,748  

M.D.C. Holdings, Inc.(c)

     12,810        398,135  

M/I Homes, Inc.(b)

     6,366        275,266  

Meritage Homes Corp.(b)

     8,257        646,936  

Sonos, Inc.(b)(c)

     28,776        432,791  

Tri Pointe Homes, Inc.(b)

     23,274        403,338  

Tupperware Brands Corp.(b)(c)

     10,315        115,941  

Universal Electronics, Inc.(b)

     2,841        63,155  
     

 

 

 
        4,990,694  
     

 

 

 
           Shares                  Value        

Internet & Direct Marketing Retail-0.80%

 

  

Liquidity Services, Inc.(b)(c)

     6,003      $ 104,992  

PetMed Express, Inc.(c)

     4,721        97,111  
     

 

 

 
        202,103  
     

 

 

 

Leisure Products-2.24%

     

Sturm Ruger & Co., Inc.

     3,962        207,014  

Vista Outdoor, Inc.(b)(c)

     12,621        354,903  
     

 

 

 
        561,917  
     

 

 

 

Multiline Retail-0.53%

     

Big Lots, Inc.

     6,426        132,183  
     

 

 

 

Specialty Retail-34.85%

     

Aaron’s Co., Inc. (The)

     6,910        82,229  

Abercrombie & Fitch Co., Class A(b)

     11,344        163,240  

Academy Sports & Outdoors, Inc.(c)

     19,216        827,825  

America’s Car-Mart, Inc.(b)(c)

     1,349        108,743  

Asbury Automotive Group, Inc.(b)(c)

     4,978        868,561  

Bed Bath & Beyond, Inc.(b)(c)

     17,964        171,197  

Boot Barn Holdings, Inc.(b)(c)

     6,691        445,754  

Buckle, Inc. (The)(c)

     6,649        214,630  

Caleres, Inc.

     8,543        218,017  

Cato Corp. (The), Class A

     3,940        42,591  

Chico’s FAS, Inc.(b)(c)

     28,157        159,932  

Children’s Place, Inc. (The)(b)(c)

     2,897        122,195  

Conn’s, Inc.(b)(c)

     3,480        33,443  

Designer Brands, Inc., Class A(c)

     13,654        232,937  

Genesco, Inc.(b)

     2,903        164,252  

Group 1 Automotive, Inc.

     3,735        667,034  

Guess?, Inc.

     8,070        140,983  

Haverty Furniture Cos., Inc., (Acquired 6/25/2020 - 7/29/2022; Cost $79,778)(e)

     3,123        83,759  

Hibbett, Inc.

     2,743        160,740  

LL Flooring Holdings, Inc.(b)

     6,701        54,546  

MarineMax, Inc.(b)(c)

     4,846        176,104  

Monro, Inc.(c)

     7,548        349,548  

National Vision Holdings, Inc.(b)(c)

     18,320        608,774  

ODP Corp. (The)(b)

     9,851        352,173  

Rent-A-Center, Inc.(c)

     12,109        312,897  

Sally Beauty Holdings, Inc.(b)(c)

     24,075        358,236  

Shoe Carnival, Inc.(c)

     3,849        91,568  

Signet Jewelers Ltd.(c)

     10,663        697,040  

Sleep Number Corp.(b)(c)

     5,002        207,233  

Sonic Automotive, Inc., Class A(c)

     4,398        233,930  

Urban Outfitters, Inc.(b)(c)

     14,422        290,315  

Zumiez, Inc.(b)(c)

     3,717        96,493  
     

 

 

 
        8,736,919  
     

 

 

 

Textiles, Apparel & Luxury Goods-8.00%

 

  

Fossil Group, Inc.(b)(c)

     10,599        44,834  

G-III Apparel Group Ltd.(b)(c)

     9,703        204,442  

Kontoor Brands, Inc.(c)

     10,462        389,500  

Movado Group, Inc.

     3,624        115,569  

Oxford Industries, Inc.(c)

     3,457        368,966  

Steven Madden Ltd.

     16,891        491,697  

 

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

 

    28    

 

 

 

 


 

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD)–(continued)

August 31, 2022

    

 

           Shares                  Value        

Textiles, Apparel & Luxury Goods-(continued)

 

  

Unifi, Inc.(b)

     3,118      $ 35,421  

Wolverine World Wide, Inc.

     18,165        354,944  
     

 

 

 
        2,005,373  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $36,633,835)

        25,044,341  
     

 

 

 

Money Market Funds-0.07%

     

Invesco Government & Agency Portfolio, Institutional Class, 2.22%(f)(g)
(Cost $18,475)

     18,475        18,475  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-99.97%
(Cost $36,652,310)

 

     25,062,816  
     

 

 

 
           Shares                  Value        
Investments Purchased with Cash Collateral from Securities on Loan

 

Money Market Funds-33.20%

     

Invesco Private Government Fund,
2.29%(f)(g)(h)

     2,330,277      $ 2,330,277  

Invesco Private Prime Fund, 2.37%(f)(g)(h)

     5,991,543        5,992,142  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $8,321,985)

 

     8,322,419  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-133.17%
(Cost $44,974,295)

 

     33,385,235  

OTHER ASSETS LESS LIABILITIES-(33.17)%

 

     (8,314,660
     

 

 

 

NET ASSETS-100.00%

      $ 25,070,575  
     

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security was out on loan at August 31, 2022.

(d) 

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 value of this security at August 31, 2022 represented 1.02% of the Fund’s Net Assets.

(e) 

Restricted security. The value of this security at August 31, 2022 represented less than 1% of the Fund’s Net Assets.

(f) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2022.

 

     Value
August 31, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
  Realized
Gain
(Loss)
  Value
August 31, 2022
   Dividend
Income
Investments in Affiliated Money Market Funds:                                
Invesco Government & Agency Portfolio, Institutional Class      $ 41,673      $ 709,052      $ (732,250 )     $ -        $ -        $ 18,475      $ 76
Investments Purchased with Cash Collateral from Securities on Loan:                                
Invesco Private Government Fund        1,430,460        25,320,583        (24,420,766 )       -       -       2,330,277        14,197 *
Invesco Private Prime Fund        3,337,740        47,670,488        (45,013,998 )       434       (2,522 )       5,992,142        40,764 *
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 
Total      $ 4,809,873      $ 73,700,123      $ (70,167,014 )     $ 434     $ (2,522 )     $ 8,340,894      $ 55,037
    

 

 

      

 

 

      

 

 

     

 

 

     

 

 

     

 

 

      

 

 

 

 

*

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.

 

(g) 

The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

(h) 

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

 

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

 

    29    

 

 

 

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC)

August 31, 2022

Schedule of Investments(a)

 

           Shares                  Value        

Common Stocks & Other Equity Interests-99.92%

 

Beverages-6.31%

     

MGP Ingredients, Inc.

     18,236      $ 1,996,112  

National Beverage Corp.(b)

     33,955        1,883,144  
     

 

 

 
        3,879,256  
     

 

 

 

Food & Staples Retailing-17.65%

     

Andersons, Inc. (The)(b)

     45,782        1,695,308  

Chefs’ Warehouse, Inc. (The)(b)(c)

     47,843        1,595,086  

PriceSmart, Inc.

     35,042        2,217,107  

SpartanNash Co.(b)

     52,601        1,600,648  

United Natural Foods, Inc.(c)

     84,784        3,737,279  
     

 

 

 
        10,845,428  
     

 

 

 

Food Products-41.65%

     

B&G Foods, Inc.(b)

     100,240        2,171,199  

Calavo Growers, Inc.

     25,781        1,083,833  

Cal-Maine Foods, Inc.

     54,596        2,926,892  

Fresh Del Monte Produce, Inc.

     48,710        1,331,732  

Hostess Brands, Inc.(b)(c)

     201,229        4,664,488  

J&J Snack Foods Corp.(b)

     21,765        3,243,638  

John B. Sanfilippo & Son, Inc.

     12,995        1,049,086  

Seneca Foods Corp., Class A(c)

     8,822        466,066  

Simply Good Foods Co. (The)(c)

     128,526        3,926,469  

Tootsie Roll Industries, Inc.(b)

     25,922        928,785  

TreeHouse Foods, Inc.(b)(c)

     81,518        3,798,738  
     

 

 

 
        25,590,926  
     

 

 

 

Household Products-10.58%

     

Central Garden & Pet Co.(b)(c)

     14,184        566,225  

Central Garden & Pet Co., Class A(c)

     57,625        2,175,920  

WD-40 Co.(b)

     19,877        3,759,934  
     

 

 

 
        6,502,079  
     

 

 

 

Personal Products-17.70%

     

Edgewell Personal Care Co.

     76,837        2,993,570  

elf Beauty, Inc.(c)

     69,777        2,660,597  

Inter Parfums, Inc.

     25,947        2,037,358  

Medifast, Inc.(b)

     16,753        2,102,166  

USANA Health Sciences, Inc.(b)(c)

     16,752        1,080,839  
     

 

 

 
        10,874,530  
     

 

 

 
           Shares                  Value        

Tobacco-6.03%

     

Universal Corp.(b)

     35,809      $ 1,827,692  

Vector Group Ltd.

     191,639        1,878,062  
     

 

 

 
        3,705,754  
     

 

 

 

Total Common Stocks & Other Equity Interests
(Cost $62,834,827)

 

     61,397,973  
     

 

 

 

Money Market Funds-0.08%

     

Invesco Government & Agency Portfolio, Institutional Class, 2.22%(d)(e)
(Cost $48,841)

     48,841        48,841  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(excluding investments purchased with cash collateral from securities on loan)-100.00%
(Cost $62,883,668)

 

     61,446,814  
     

 

 

 
Investments Purchased with Cash Collateral from Securities on Loan

 

  

Money Market Funds-24.14%

     

Invesco Private Government Fund,
2.29%(d)(e)(f)

     4,082,330        4,082,330  
     

 

 

 

Invesco Private Prime Fund, 2.37%(d)(e)(f)

     10,749,065        10,750,140  
     

 

 

 

Total Investments Purchased with Cash Collateral from Securities on Loan
(Cost $14,831,748)

 

     14,832,470  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES-124.14%
(Cost $77,715,416)

 

     76,279,284  

OTHER ASSETS LESS LIABILITIES-(24.14)%

 

     (14,831,782
     

 

 

 

NET ASSETS-100.00%

      $ 61,447,502  
     

 

 

 

 

Notes to Schedule of Investments:

(a) 

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

(b) 

All or a portion of this security was out on loan at August 31, 2022.

(c)

Non-income producing security.

(d) 

Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended August 31, 2022.

 

     Value
August 31,  2021
     Purchases
at Cost
    Proceeds
from  Sales
    Change  in
Unrealized
Appreciation
    Realized
Gain
(Loss)
    Value
August 31,  2022
   

Dividend

  Income  

 
Investments in Affiliated Money Market Funds:                                        
Invesco Government & Agency Portfolio, Institutional Class    $ 6,948          $     915,846         $       (873,953)        $  -           $  -           $     48,841         $ 70  

 

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

 

    30    

 

 

 

 


 

Invesco S&P SmallCap Consumer Staples ETF (PSCC)–(continued)

August 31, 2022

    

 

     Value
August 31, 2021
   Purchases
at Cost
   Proceeds
from Sales
  Change in
Unrealized
Appreciation
   Realized
Gain
(Loss)
  Value
August 31, 2022
   Dividend
Income
Investments Purchased with Cash Collateral from Securities on Loan:                                 
Invesco Private Government Fund        $  601,416        $ 35,864,183      $ (32,383,269 )     $ -        $ -       $ 4,082,330      $ 20,565 *
Invesco Private Prime Fund            1,403,304          75,145,853        (65,797,672 )       722        (2,067 )       10,750,140        58,438 *
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 
Total        $2,011,668          $111,925,882          $(99,054,894)         $722          $(2,067)         $14,881,311          $79,073  
    

 

 

      

 

 

      

 

 

     

 

 

      

 

 

     

 

 

      

 

 

 

 

*

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

 

(e) 

The rate shown is the 7-day SEC standardized yield as of August 31, 2022.

(f) 

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

 

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

 

    31    

 

 

 

 


 

Invesco S&P SmallCap Energy ETF (PSCE)

August 31, 2022

Schedule of Investments(a)

 

           Shares                  Value        

Common Stocks & Other Equity Interests-99.02%

 

Energy Equipment & Services-38.34%

     

Archrock, Inc.(b)

     480,299      $ 3,549,410  

Bristow Group, Inc.(b)(c)

     82,321        2,388,132  

Core Laboratories N.V.(b)

     164,237        2,652,428  

DMC Global, Inc.(b)(c)

     69,118        1,542,714  

Dril-Quip, Inc.(b)(c)

     122,423        2,709,221  

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

     505,697        2,184,611  

Helmerich & Payne, Inc.(b)

     338,403        14,466,728  

Nabors Industries Ltd.(b)(c)

     31,442        4,166,379  

Oceaneering International, Inc.(b)(c)

     355,606        3,147,113  

Oil States International, Inc.(b)(c)

     219,571        1,075,898  

Patterson-UTI Energy, Inc.

     441,532        6,578,827  

ProPetro Holding Corp.(b)(c)

     303,233        2,777,614  

RPC, Inc.(b)

     249,731        1,985,361  

US Silica Holdings, Inc.(b)(c)

     268,429        3,766,059  
     

 

 

 
        52,990,495  
     

 

 

 

Oil, Gas & Consumable Fuels-60.68%

     

Callon Petroleum Co.(b)(c)

     152,596