0001378872 ietft2:FTSERAFITMDevelopedExUSMidSmall1500IndexNetMember 2023-10-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
Invesco Exchange-Traded Fund Trust II
(Exact name of registrant as specified in charter)
3500 Lacey Road Downers Grove, IL 60515
(Address of principal executive offices) (Zip code)
Brian Hartigan, President
3500 Lacey Road
Downers Grove, IL 60515
Registrant's telephone number, including area code:
Date of reporting period:
Item 1. Reports to Stockholders.
(a) The Registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Act") is as follows:
Invesco 0-5 Yr US TIPS ETF
PBTP | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco 0-5 Yr US TIPS ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco 0-5 Yr US TIPS ETF | $7 | 0.07% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the U.S. Treasury bond market benefited from relatively lower short-term interest rates. Because the Fund holds the vast majority of its portfolio in U.S. Treasury Inflation-Protected Securities ("TIPS") that have shorter durations, it benefited from this broader market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the ICE BofA 0-5 Year US Inflation-Linked Treasury Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the components that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 6.57%, differed from the return of the Index, 6.63%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Duration Allocations | Bonds with maturities of 3-4 years, followed by bonds with maturities of 2-3 years.
Positions | U.S. Treasury Inflation-Indexed Note, 0.50% coupon, due 01/15/2028, followed by U.S. Treasury Inflation-Indexed Note 0.63% coupon, due 01/15/2026.
What detracted from performance?
Duration Allocations | No maturity durations detracted from the Fund's performance during the period.
Positions | U.S. Treasury Inflation-Indexed Note, 1.63% coupon, due 10/15/2029.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years | Since
Inception
(09/22/17) |
| Invesco 0-5 Yr US TIPS ETF — NAV Return | 6.57% | 3.38% | 3.00% |
| ICE BofA 0-5 Year US Inflation-Linked Treasury Index | 6.63% | 3.46% | 3.09% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | (0.23)% | 1.08% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the ICE BofA 0-5 Year US Inflation-Linked Treasury Index to the Bloomberg U.S. Aggregate Bond Index to reflect that the Bloomberg U.S. Aggregate Bond Index can be considered more broadly representative of the overall applicable securities market.
- Prior to July 1, 2022, Index returns reflect no deduction for fees, expenses or taxes. Effective July 1, 2022, Index returns reflect no deduction for taxes, but include transaction costs (as determined and calculated by the index provider), which may be higher of lower than the actual transaction costs incurred by the Fund.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,141,655 |
| Total number of portfolio holdings | 28 |
| Total advisory fees paid | $43,257 |
| Portfolio turnover rate | 33% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| U.S. Treasury Inflation - Indexed Notes, 0.63%, 01/15/2026 | 4.88% |
| U.S. Treasury Inflation - Indexed Notes, 0.25%, 01/15/2025 | 4.82% |
| U.S. Treasury Inflation - Indexed Notes, 0.38%, 07/15/2025 | 4.78% |
| U.S. Treasury Inflation - Indexed Notes, 0.38%, 01/15/2027 | 4.31% |
| U.S. Treasury Inflation - Indexed Notes, 0.50%, 01/15/2028 | 4.23% |
| U.S. Treasury Inflation - Indexed Notes, 0.13%, 07/15/2026 | 4.20% |
| U.S. Treasury Inflation - Indexed Bonds, 2.38%, 01/15/2025 | 4.16% |
| U.S. Treasury Inflation - Indexed Notes, 0.13%, 04/15/2026 | 4.14% |
| U.S. Treasury Inflation - Indexed Notes, 0.38%, 07/15/2027 | 4.08% |
| U.S. Treasury Inflation - Indexed Notes, 0.25%, 07/15/2029 | 4.07% |
| * Excluding money market fund holdings, if any. | |
Duration allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF
BLKC | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | $83 | 0.60% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, digital assets experienced a positive market environment. Since many blockchain-related companies either are exposed to digital asset prices directly or generate revenues from activity in the space, they also benefited from the strong performance of digital assets.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Alerian Galaxy Global Blockchain Equity, Trusts and ETPs Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 76.95%, differed from the return of the Index, 76.77%, primarily due to income from the securities lending program in which the Fund participates, partially offset by fees and expenses that the Fund incurred during the period.
What contributed to performance?
Industry Allocations | Software industry, followed by the capital markets and semiconductors & semiconductor equipment industries, respectively.
Positions | Grayscale Bitcoin Trust BTC, an exchange-traded fund, and MicroStrategy Inc., Class A, a software company.
What detracted from performance?
Industry Allocations | Technology hardware storage & peripherals industry, followed by the food products and household durables industries, respectively.
Positions | Stronghold Digital Mining, Inc., Class A, a software company, and Canaan, Inc., ADR, a technology hardware storage & peripherals company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year | Since
Inception
(10/07/21) |
| Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF — NAV Return | 76.95% | (1.34)% |
| Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index (Net) | 76.77% | (1.68)% |
| MSCI ACWI (Net) | 32.79% | 6.70% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $3,362,725 |
| Total number of portfolio holdings | 69 |
| Total advisory fees paid | $19,333 |
| Portfolio turnover rate | 91% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| iShares Bitcoin Trust | 7.03% |
| Grayscale Bitcoin Trust BTC | 3.62% |
| Fidelity Wise Origin Bitcoin Fund | 3.40% |
| Terawulf, Inc. | 2.14% |
| Hut 8 Corp. | 1.83% |
| Cipher Mining, Inc. | 1.73% |
| MicroStrategy, Inc., Class A | 1.72% |
| SoFi Technologies, Inc. | 1.67% |
| Bit Digital, Inc. | 1.66% |
| Hive Digital Technologies Ltd. | 1.64% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
The Fund modified its principal risks to reflect that the Fund may obtain investment exposure to cryptocurrencies indirectly through investments in cryptocurrency exchange-traded products.
The Fund's classification changed from non-diversified to diversified, and therefore the Fund is now required to meet certain diversification requirements under the Investment Company Act of 1940.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Alerian Galaxy Crypto Economy ETF
SATO | Cboe BZX Exchange, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Alerian Galaxy Crypto Economy ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Alerian Galaxy Crypto Economy ETF | $96 | 0.60% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, digital assets experienced a positive market environment. Stocks of companies that are materially engaged in the research and development of blockchain technology, cryptocurrency mining, cryptocurrency buying, or cryptocurrency enabling technologies benefited from the strong performance of digital assets.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 121.02%, differed from the return of the Index, 115.99%, primarily due to income from the securities lending program in which the Fund participates, partially offset by fees and expenses that the Fund incurred during the period.
What contributed to performance?
Industry Allocations | Software industry, followed by the capital markets and IT services industries, respectively.
Positions | Grayscale Bitcoin Trust BTC, an exchange-traded fund, and CleanSpark, Inc., a software company.
What detracted from performance?
Industry Allocations | Technology hardware storage & peripherals industry, followed by the industrial conglomerates industry.
Positions | Canaan, Inc., ADR, a technology hardware storage & peripherals company, and Stronghold Digital Mining, Inc., Class A, a software company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year | Since
Inception
(10/07/21) |
| Invesco Alerian Galaxy Crypto Economy ETF — NAV Return | 121.02% | (9.23)% |
| Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index (Net) | 115.99% | (9.91)% |
| MSCI ACWI (Net) | 32.79% | 6.70% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $8,483,768 |
| Total number of portfolio holdings | 49 |
| Total advisory fees paid | $46,595 |
| Portfolio turnover rate | 137% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| iShares Bitcoin Trust | 6.54% |
| Terawulf, Inc. | 4.65% |
| Hut 8 Corp. | 3.98% |
| Cipher Mining, Inc. | 3.77% |
| MicroStrategy, Inc., Class A | 3.74% |
| Bit Digital, Inc. | 3.61% |
| Hive Digital Technologies Ltd. | 3.56% |
| Iris Energy Ltd. | 3.49% |
| Canaan, Inc., ADR | 3.46% |
| CleanSpark, Inc. | 3.44% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
The Fund modified its principal risks to reflect that the Fund may obtain investment exposure to cryptocurrencies indirectly through investments in cryptocurrency exchange-traded products.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco China Technology ETF
CQQQ | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco China Technology ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco China Technology ETF | $73 | 0.66% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, Chinese equities experienced a mostly negative market environment driven largely by weak consumer demand and an ongoing property crisis. However, at the end of the period, the October announcement of broad government stimulus contributed to a sharp recovery in Chinese equities. Given the Fund's focus on Chinese equities, it largely benefited from this market tailwind and finished the period in positive territory.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE China Incl A 25% Technology Capped Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 19.91%, differed from the return of the Index, 20.80%, primarily due to fees and expenses that the Fund incurred during the period as well as the impact of currency depreciation.
What contributed to performance?
Industry Allocations | Interactive media & services industry, followed by the hotels restaurants & leisure industry.
Positions | Meituan, B Shares, a hotels restaurants & leisure company, and Tencent Holdings Ltd., an interactive media & services company.
What detracted from performance?
Industry Allocations | Consumer staples distribution & retail industry, followed by the software industry.
Positions | Sunny Optical Technology Group Co. Ltd., an electronic equipment instruments & components company and Kingdee International Software Group Co. Ltd., a software company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco China Technology ETF — NAV Return | 19.91% | (2.66)% | 1.68% |
| Blended - FTSE China Incl A 25% Technology Capped Index (Net) | 20.80% | (1.96)% | 1.99% |
| MSCI China Index (Net) | 21.75% | (1.17)% | 2.35% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective after the close of business on May 18, 2018, Guggenheim China Technology ETF was reorganized into the Fund. Fund returns shown are blended returns of Guggenheim China Technology ETF and the Fund.
- The Blended - FTSE China Incl A 25% Technology Capped Index (Net) performance is comprised of the performance of the AlphaShares China Technology Index, the Fund's former underlying index, prior to June 22, 2019, followed by the performance of the Index thereafter.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $767,345,488 |
| Total number of portfolio holdings | 151 |
| Total advisory fees paid | $4,245,036 |
| Portfolio turnover rate | 43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meituan, B Shares | 10.15% |
| Tencent Holdings Ltd. | 8.17% |
| PDD Holdings, Inc., ADR | 7.66% |
| Baidu, Inc., A Shares | 5.71% |
| Kuaishou Technology | 5.44% |
| Bilibili, Inc., Z Shares | 4.62% |
| SenseTime Group, Inc., B Shares | 3.55% |
| Sunny Optical Technology Group Co. Ltd. | 3.12% |
| Kingdee International Software Group Co. Ltd. | 2.23% |
| Hygon Information Technology Co. Ltd., A Shares | 2.16% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
Effective January 5, 2024, the Fund's annual unitary management fee was reduced to 0.65% of the Fund's average daily net assets.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Dorsey Wright Developed Markets Momentum ETF
PIZ | The Nasdaq Stock Market LLC
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Dorsey Wright Developed Markets Momentum ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Dorsey Wright Developed Markets Momentum ETF | $94 | 0.80% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's focus on developed market equities, it largely benefited from the market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright Developed Markets Technical Leaders™ Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 35.67%, differed from the return of the Index, 36.71%, primarily due to the daily compounding of fees during a period of high returns.
What contributed to performance?
Sector Allocations | Industrials sector, followed by the financials sector.
Positions | ASM International N.V., an information technology company (no longer held at fiscal year-end) and Constellation Software, Inc., an information technology company.
What detracted from performance?
Sector Allocations | Energy sector.
Positions | HLB Co., Ltd., a healthcare company (no longer held at fiscal year-end) and Whitecap Resources Inc., and energy company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Dorsey Wright Developed Markets Momentum ETF — NAV Return | 35.67% | 7.74% | 5.62% |
| Dorsey Wright Developed Markets Technical Leaders™ Index (Net) | 36.71% | 8.47% | 6.43% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Dorsey Wright Developed Markets Technical Leaders™ Index (Net) to the MSCI EAFE® Index (Net) to reflect that the MSCI EAFE® Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $136,210,842 |
| Total number of portfolio holdings | 102 |
| Total advisory fees paid | $1,038,940 |
| Portfolio turnover rate | 114% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| InterContinental Hotels Group PLC | 3.04% |
| Constellation Software, Inc. | 2.86% |
| REA Group Ltd. | 2.75% |
| Descartes Systems Group, Inc. (The) | 2.62% |
| Belimo Holding AG | 2.60% |
| Novo Nordisk A/S, Class B | 2.34% |
| Flughafen Zureich AG | 2.34% |
| Dollarama, Inc. | 2.22% |
| Halma PLC | 2.09% |
| Mizrahi Tefahot Bank Ltd. | 2.04% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Dorsey Wright Emerging Markets Momentum ETF
PIE | The Nasdaq Stock Market LLC
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Dorsey Wright Emerging Markets Momentum ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Dorsey Wright Emerging Markets Momentum ETF | $98 | 0.90% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund's focus on momentum within emerging market equities resulted in underperformance versus the MSCI Emerging Markets Index (Net).
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Dorsey Wright Emerging Markets Technical Leaders™ Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 17.19%, differed from the return of the Index, 20.35%, primarily due to fees and expenses that the Fund incurred during the period along with the impact of foreign fair valuation and sampling.
What contributed to performance?
Sector Allocations | Information technology sector, followed by the consumer staples sector.
Positions | Topco Scientific Co. Ltd., an information technology company and Taiwan Semiconductor Manufacturing Co. Ltd., an information technology company.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Turk Traktor ve Ziraat Makineleri A.S., an industrials company (no longer held at fiscal year-end) and Wiwynn Corp., an information technology company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Dorsey Wright Emerging Markets Momentum ETF — NAV Return | 17.19% | 3.87% | 2.62% |
| Dorsey Wright Emerging Markets Technical Leaders™ Index (Net) | 20.35% | 5.88% | 4.33% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Dorsey Wright Emerging Markets Technical Leaders™ Index (Net) to the MSCI Emerging Markets Index (Net) to reflect that the MSCI Emerging Markets Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $123,269,342 |
| Total number of portfolio holdings | 101 |
| Total advisory fees paid | $1,156,323 |
| Portfolio turnover rate | 175% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Topco Scientific Co. Ltd. | 3.30% |
| Charoen Pokphand Enterprise (Taiwan) Co. Ltd. | 3.05% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 2.95% |
| Clicks Group Ltd. | 2.53% |
| Shiny Chemical Industrial Co. Ltd. | 2.43% |
| QL Resources Bhd. | 2.39% |
| Lien Hwa Industrial Holdings Corp. | 2.21% |
| Goldsun Building Materials Co. Ltd. | 2.18% |
| China Shenhua Energy Co. Ltd., H Shares | 2.03% |
| Kaori Heat Treatment Co. Ltd. | 1.98% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Emerging Markets Sovereign Debt ETF
PCY | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Emerging Markets Sovereign Debt ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Emerging Markets Sovereign Debt ETF | $56 | 0.50% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market sovereign debt benefited from relatively lower longer term U.S. interest rates and tightening credit spreads. Because the Fund holds the vast majority of its portfolio in emerging market sovereign bonds, it benefited from this broader market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the DBIQ Emerging Markets USD Liquid Balanced Index (the “Index”). The Fund generally will invest at least 80% of its total assets in components that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 23.11%, differed from the return of the Index, 23.56%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Country Allocations | Pakistan bonds, followed by Egypt bonds and El Salvador bonds, respectively.
Positions | Pakistan Government International Bond, 6.88% coupon, due 12/05/2027, followed by Pakistan Government International Bond, 7.38% coupon, due 04/08/2031.
What detracted from performance?
Country Allocations | No country detracted from the Fund's performance during the period.
Positions | Peruvian Government International Bond, 5.88% coupon, due 08/08/2054, followed by Guatemala Government Bond, 6.55% coupon, due 02/06/2037.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Emerging Markets Sovereign Debt ETF — NAV Return | 23.11% | (1.10)% | 2.00% |
| DBIQ Emerging Markets USD Liquid Balanced Index | 23.56% | (1.37)% | 2.16% |
| Bloomberg Global Aggregate ex-U.S. Index | 8.65% | (2.87)% | (0.85)% |
| JP Morgan Emerging Market Bond Global Index | 17.62% | 0.75% | 2.77% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the JP Morgan Emerging Market Bond Global Index to the Bloomberg Global Aggregate ex-U.S. Index to reflect that the Bloomberg Global Aggregate ex-U.S. Index can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,354,859,071 |
| Total number of portfolio holdings | 94 |
| Total advisory fees paid | $7,281,411 |
| Portfolio turnover rate | 30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Republic of Kenya Government International Bond, 7.25%, 02/28/2028 | 1.62% |
| Republic of Kenya Government International Bond, 8.25%, 02/28/2048 | 1.61% |
| Kazakhstan Government International Bond, 6.50%, 07/21/2045 | 1.58% |
| Kazakhstan Government International Bond, 4.88%, 10/14/2044 | 1.55% |
| El Salvador Government International Bond, 7.63%, 02/01/2041 | 1.25% |
| Pakistan Government International Bond, 7.38%, 04/08/2031 | 1.21% |
| Pakistan Government International Bond, 6.88%, 12/05/2027 | 1.20% |
| Pakistan Government International Bond, 8.88%, 04/08/2051 | 1.20% |
| El Salvador Government International Bond, 9.50%, 07/15/2052 | 1.17% |
| El Salvador Government International Bond, 8.25%, 04/10/2032 | 1.14% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF
PXF | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco FTSE RAFI Developed Markets ex-U.S. ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco FTSE RAFI Developed Markets ex-U.S. ETF | $50 | 0.45% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund lagged the broader developed market equity asset class due primarily to its specific security exposures within the information technology sector.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Developed ex U.S. 1000 Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 22.84%, differed from the return of the Index, 23.12%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Financials sector, followed by the industrials and materials sectors, respectively.
Positions | HSBC Holdings PLC, a financials company, and Royal Bank of Canada, a financials company.
What detracted from performance?
Sector Allocations | Information technology sector.
Positions | Atos SE, an information technology company (no longer held at fiscal year-end), and BP PLC, an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco FTSE RAFI Developed Markets ex-U.S. ETF — NAV Return | 22.84% | 7.50% | 5.32% |
| FTSE RAFI™ Developed ex U.S. 1000 Index (Net) | 23.12% | 7.68% | 5.51% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE RAFI™ Developed ex U.S. 1000 Index (Net) to the MSCI EAFE® Index (Net) to reflect that the MSCI EAFE® Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,697,209,712 |
| Total number of portfolio holdings | 1,030 |
| Total advisory fees paid | $7,594,617 |
| Portfolio turnover rate | 12% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Shell PLC | 2.34% |
| TotalEnergies SE | 1.24% |
| Samsung Electronics Co. Ltd. | 1.14% |
| Toyota Motor Corp. | 1.00% |
| HSBC Holdings PLC | 1.00% |
| BP PLC | 0.93% |
| Roche Holding AG | 0.92% |
| Royal Bank of Canada | 0.90% |
| BHP Group Ltd. | 0.85% |
| Nestle S.A. | 0.82% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
At a meeting held on December 13, 2024, the Board of Trustees approved changes to the name, investment objective, underlying index, principal investment strategy and annual unitary management fee of the Fund. The Fund’s name will change to Invesco RAFI Developed Markets ex-U.S. ETF, the underlying index will change to RAFITM Fundamental Select Developed ex US 1000 Index (“New Underlying Index”) and the unitary management fee will be reduced to 0.43% of the Fund's average daily net assets. The investment objective of the Fund will change to track the investment results (before fees and expenses) of the New Underlying Index, and the Fund’s principal investment strategy will change to generally invest at least 90% of its total assets in the components of the New Underlying Index. These changes will be effective on March 24, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF
PDN | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | $54 | 0.49% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund slightly lagged the broader developed market equity asset class due primarily to its specific security exposures within the financials, consumer staples, and consumer discretionary sectors.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Developed ex US Mid-Small 1500 Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 19.97%, differed from the return of the Index, 20.71%, primarily due to fees and expenses that the Fund incurred during the period as well as the impact of foreign fair valuation, which were partially offset by the favorable dividend tax withholding on foreign securities as well as income from the securities lending program in which the Fund participates.
What contributed to performance?
Sector Allocations | Industrials sector, followed by the financials and materials sectors, respectively.
Positions | SCREEN Holdings Co. Ltd., an information technology company (no longer held at fiscal year-end), and Hanwha Aerospace Co. Ltd., an industrials company.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | HelloFresh SE, a consumer staples company (no longer held at fiscal year-end), and United Energy Group Ltd., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF — NAV Return | 19.97% | 4.15% | 4.77% |
| FTSE RAFI™ Developed ex U.S. Mid-Small 1500 Index (Net) | 20.71% | 4.53% | 5.14% |
| MSCI World ex USA IMI Index | 23.81% | 6.29% | 5.33% |
| MSCI EAFE® Small Cap Index (Net) | 22.96% | 4.10% | 5.73% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the FTSE RAFI™ Developed ex U.S. Mid-Small 1500 Index (Net) to the MSCI World ex USA IMI Index to reflect that the MSCI World ex USA IMI Index can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $400,740,967 |
| Total number of portfolio holdings | 1,487 |
| Total advisory fees paid | $2,407,883 |
| Portfolio turnover rate | 30% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Doosan Co. Ltd. | 0.28% |
| IAMGOLD Corp. | 0.28% |
| Hanwha Aerospace Co. Ltd. | 0.27% |
| Canadian Western Bank | 0.27% |
| ASICS Corp. | 0.25% |
| Pan American Silver Corp. | 0.25% |
| AAC Technologies Holdings, Inc. | 0.24% |
| Stelco Holdings, Inc. | 0.23% |
| Eldorado Gold Corp. | 0.23% |
| Alps Alpine Co. Ltd. | 0.21% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
At a meeting held on December 13, 2024, the Board of Trustees approved changes to the name, investment objective, underlying index, principal investment strategy and annual unitary management fee of the Fund. The Fund’s name will change to Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF, the underlying index will change to RAFITM Fundamental Select Developed ex US 1500 Index (“New Underlying Index”) and the unitary management fee will be reduced to 0.47% of the Fund's average daily net assets. The investment objective of the Fund will change to track the investment results (before fees and expenses) of the New Underlying Index, and the Fund’s principal investment strategy will change to generally invest at least 90% of its total assets in the components of the New Underlying Index. These changes will be effective on March 24, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco FTSE RAFI Emerging Markets ETF
PXH | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco FTSE RAFI Emerging Markets ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco FTSE RAFI Emerging Markets ETF | $56 | 0.49% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund outperformed the broader emerging market equities asset class due primarily to its specific security exposures within the financials sector.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the FTSE RAFITM Emerging Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 28.95%, differed from the return of the Index, 31.01%, primarily due to fees and expenses that the Fund incurred during the period as well as the negative impact of foreign fair valuation and capital gains taxes on Indian securities.
What contributed to performance?
Sector Allocations | Financials sector, followed by the information technology and consumer discretionary sectors, respectively.
Positions | Taiwan Semiconductor Manufacturing Co. Ltd., an information technology company, and Tencent Holdings Ltd., a communication services company.
What detracted from performance?
Sector Allocations | Real estate sector.
Positions | Vale S.A., a materials company, and Sasol Ltd., a materials company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco FTSE RAFI Emerging Markets ETF — NAV Return | 28.95% | 4.88% | 4.21% |
| FTSE RAFI™ Emerging Index (Net) | 31.01% | 5.76% | 4.92% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,235,098,816 |
| Total number of portfolio holdings | 419 |
| Total advisory fees paid | $5,952,010 |
| Portfolio turnover rate | 21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 6.28% |
| Alibaba Group Holding Ltd. | 4.78% |
| Tencent Holdings Ltd. | 3.26% |
| Industrial & Commercial Bank of China Ltd., H Shares | 2.65% |
| China Construction Bank Corp., H Shares | 2.51% |
| Ping An Insurance (Group) Co. of China Ltd., H Shares | 2.46% |
| Vale S.A. | 2.04% |
| Petroleo Brasileiro S.A., Preference Shares | 2.01% |
| Bank of China Ltd., H Shares | 1.85% |
| JD.com, Inc., A Shares | 1.79% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
At a meeting held on December 13, 2024, the Board of Trustees approved changes to the name, investment objective, underlying index, principal investment strategy and annual unitary management fee of the Fund. The Fund’s name will change to Invesco RAFI Emerging Markets ETF, the underlying index will change to RAFITM Fundamental Select Emerging Markets 350 Index (“New Underlying Index”) and the unitary management fee will be reduced to 0.47% of the Fund's average daily net assets. The investment objective of the Fund will change to track the investment results (before fees and expenses) of the New Underlying Index, and the Fund’s principal investment strategy will change to generally invest at least 90% of its total assets in the components of the New Underlying Index. These changes will be effective on March 24, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Clean Energy ETF
PBD | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Clean Energy ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Global Clean Energy ETF | $74 | 0.75% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, clean energy showed signs of a recovery coming into 2024, however, U.S. tariffs on China and profitability concerns with U.S. solar weighed heavily on an already battered industry. Interest rate cuts and a potential bottoming in polysilicon prices created some optimism, but not enough to offset the poor momentum in U.S. solar during the period.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the WilderHill New Energy Global Innovation Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, (1.80)%, differed from the return of the Index, (1.50)%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sub-Industry Allocations | Renewable electricity sub-industry, followed by the heavy electrical equipment and automative retail sub-industries, respectively.
Positions | EVgo, Inc., an automotive retail company, and LS Electric Co. Ltd., an electrical components & equipment company.
What detracted from performance?
Sub-Industry Allocations | Semiconductors sub-industry, followed by the electrical components & equipment and automobile manufacturers sub-industries, respectively.
Positions | Meyer Burger Technology AG, a semiconductors company, and Fisker, Inc., an automobile manufacturers company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Global Clean Energy ETF — NAV Return | (1.80)% | 2.11% | 2.03% |
| WilderHill New Energy Global Innovation Index | (1.50)% | 2.18% | 2.18% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $97,273,409 |
| Total number of portfolio holdings | 112 |
| Total advisory fees paid | $910,901 |
| Portfolio turnover rate | 52% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| EVgo, Inc. | 1.98% |
| Eos Energy Enterprises, Inc. | 1.55% |
| XPeng, Inc., ADR | 1.53% |
| JinkoSolar Holding Co. Ltd., ADR | 1.29% |
| Yadea Group Holdings Ltd. | 1.28% |
| Flat Glass Group Co. Ltd., H Shares | 1.25% |
| NIO, Inc., ADR | 1.25% |
| Ganfeng Lithium Group Co. Ltd., H Shares | 1.21% |
| Tianneng Power International Ltd. | 1.16% |
| Xinyi Solar Holdings Ltd. | 1.13% |
| * Excluding money market fund holdings, if any. | |
Sub-industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global ex-US High Yield Corporate Bond ETF
PGHY | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global ex-US High Yield Corporate Bond ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Global ex-US High Yield Corporate Bond ETF | $38 | 0.35% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the global high yield bond market benefited from relatively lower longer term interest rates and tightening credit spreads. Because the Fund holds the vast majority of its portfolio in global high yield bonds outside the United States, it benefited from this broader market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the ICE USD Global High Yield Excluding US Issuers Constrained Index (the “Index”). The Fund generally will invest at least 80% of its total assets in components that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 15.68%, differed from the return of the Index, 16.22%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Energy sector, followed by the materials and communication services sectors, respectively.
Positions | Industrial and Commercial Bank of China Ltd., 3.20% coupon, followed by ABRA Global Finance, 5.50% PIK Rate, 6.00% Cash Rate, due 03/02/2028 (no longer held at fiscal year-end).
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Chelyabinsk Pipe Plant Via Chelpipe Finance DAC, 4.50% coupon, matured on 09/19/2024, followed by Guitar Center Holdings, Inc., Series A, Pfd., 0.00%.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Global ex-US High Yield Corporate Bond ETF — NAV Return | 15.68% | 3.50% | 3.91% |
| Blended - Invesco Global ex-US High Yield Corporate Bond Benchmark | 16.22% | 3.38% | 4.54% |
| Bloomberg Global Aggregate Index | 9.54% | (1.64)% | 0.23% |
| ICE BofA 0-5 Year US High Yield Constrained Index | 14.72% | 5.08% | 4.83% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the ICE BofA 0-5 Year US High Yield Constrained Index to the Bloomberg Global Aggregate Index to reflect that the Bloomberg Global Aggregate Index can be considered more broadly representative of the overall applicable securities market.
- The Blended - Invesco Global ex-US High Yield Corporate Bond Benchmark performance is comprised of the performance of the DB Global Short Maturity High Yield Bond Index, the Fund's former underlying index, through August 25, 2023, followed by the performance of the Index thereafter.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $140,520,027 |
| Total number of portfolio holdings | 534 |
| Total advisory fees paid | $472,482 |
| Portfolio turnover rate | 29% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Industrial and Commercial Bank of China Ltd., 3.20%, | 1.44% |
| Samarco Mineracao S.A., 9.00% PIK Rate, 0.50% Cash Rate, 9.00%, 06/30/2031 | 0.88% |
| Teva Pharmaceutical Finance Netherlands III B.V., 3.15%, 10/01/2026 | 0.64% |
| 1011778 BC ULC/New Red Finance, Inc., 4.00%, 10/15/2030 | 0.62% |
| Bank of Communications Co. Ltd., 3.80%, | 0.60% |
| Vodafone Group PLC, 7.00%, 04/04/2079 | 0.58% |
| Rakuten Group, Inc., 9.75%, 04/15/2029 | 0.50% |
| Altice France S.A., 5.13%, 07/15/2029 | 0.48% |
| First Quantum Minerals Ltd., 6.88%, 10/15/2027 | 0.47% |
| Rakuten Group, Inc., 11.25%, 02/15/2027 | 0.46% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 983-0903.
The Fund added portfolio turnover risk to its principal risks to reflect that frequent trading of portfolio securities could result in increased transaction costs, a lower return and increased tax liability.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Water ETF
PIO | The Nasdaq Stock Market LLC
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Water ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco Global Water ETF | $86 | 0.75% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, global equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund outperformed the broader global equities asset class primarily due to its overweight allocation to the industrials sector and underweight allocation to the materials sector.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Nasdaq OMX Global WaterTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that are based on the securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 28.10%, differed from the return of the Index, 28.59%, primarily due to fees and expenses the Fund incurred during the period.
What contributed to performance?
Sub-Industry Allocations | Industrial machinery & supplies & components sub-industry, followed by the building products and life sciences tools & services sub-industries, respectively.
Positions | Pentair PLC, an industrial machinery & supplies & components company, and Danaher Corp., a life sciences tools and services company (no longer held at fiscal year-end).
What detracted from performance?
Sub-Industry Allocations | Electric utilities sub-industry.
Positions | Nomura Micro Science Co. Ltd., an industrial machinery & supplies & components company, and Core & Main, Inc., a trading companies & distributors company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco Global Water ETF — NAV Return | 28.10% | 8.07% | 6.99% |
| Nasdaq OMX Global WaterTM Index | 28.59% | 8.38% | 7.20% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $269,681,504 |
| Total number of portfolio holdings | 41 |
| Total advisory fees paid | $2,082,675 |
| Portfolio turnover rate | 48% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Pentair PLC | 9.29% |
| Ecolab, Inc. | 8.07% |
| Roper Technologies, Inc. | 8.07% |
| Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | 7.91% |
| Veolia Environnement S.A. | 5.08% |
| Ebara Corp. | 4.73% |
| Geberit AG | 4.07% |
| Xylem, Inc. | 3.67% |
| Veralto Corp. | 3.59% |
| Waters Corp. | 3.27% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International BuyBack AchieversTM ETF
IPKW | The Nasdaq Stock Market LLC
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International BuyBack AchieversTM ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco International BuyBack AchieversTM ETF | $63 | 0.55% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, global equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund outperformed the broader global equities asset class due primarily to its specific security exposures within the consumer discretionary, financials and consumer staples sectors.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Nasdaq International BuyBack AchieversTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 28.26%, differed from the return of the Index, 29.02%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Financials sector, followed by the consumer discretionary and industrials sectors, respectively.
Positions | UniCredit S.p.A., a financials company, and Barclays PLC, a financials company (no longer held at fiscal year-end).
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | BP PLC, an energy company, and Vale S.A., a materials company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco International BuyBack AchieversTM ETF — NAV Return | 28.26% | 9.28% | 8.29% |
| Nasdaq International BuyBack Achievers™ Index (Net) | 29.02% | 9.89% | 8.95% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $91,099,711 |
| Total number of portfolio holdings | 111 |
| Total advisory fees paid | $461,529 |
| Portfolio turnover rate | 93% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| CRH PLC | 5.36% |
| Shell PLC | 5.26% |
| UniCredit S.p.A. | 5.19% |
| BNP Paribas S.A. | 5.12% |
| TotalEnergies SE | 4.93% |
| ING Groep N.V. | 4.84% |
| BP PLC | 4.76% |
| Alibaba Group Holding Ltd. | 4.43% |
| NatWest Group PLC | 2.65% |
| Japan Post Holdings Co. Ltd. | 2.52% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Corporate Bond ETF
PICB | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Corporate Bond ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco International Corporate Bond ETF | $53 | 0.50% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, the investment grade corporate bond market benefited from relatively lower longer term interest rates and tightening credit spreads. Because the Fund holds the vast majority of its portfolio in investment grade corporate bonds, it benefited from this broader market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P International Corporate Bond Index® (the “Index”). The Fund generally will invest at least 80% of its total assets in the components that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 11.39%, differed from the return of the Index, 11.12%, primarily due to positive impacts from sampling, which were partially offset by fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Financials sector, followed by the utilities and communication services sectors, respectively.
Positions | Bank of Nova Scotia (The), 4.68% coupon, due 02/01/2029, followed by Electricite de France S.A., 6.00% coupon, due 01/23/2114.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Rothesay Life PLC, 7.73% coupon, due 05/16/2033, followed by Thames Water Utilities Finance PLC, 7.75% coupon, due 04/30/2044 (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco International Corporate Bond ETF — NAV Return | 11.39% | (1.83)% | (0.66)% |
| S&P International Corporate Bond Index® (Net) | 11.12% | (1.84)% | (0.70)% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
| Bloomberg Pan-European Aggregate Index | 11.17% | (2.88)% | (1.15)% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the Bloomberg Pan-European Aggregate Index to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $126,462,609 |
| Total number of portfolio holdings | 603 |
| Total advisory fees paid | $636,593 |
| Portfolio turnover rate | 41% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Toronto-Dominion Bank (The), 4.21%, 06/01/2027 | 0.57% |
| Electricite de France S.A., 5.50%, 10/17/2041 | 0.55% |
| Enel Finance International N.V., 5.75%, 09/14/2040 | 0.55% |
| Toronto-Dominion Bank (The), 4.68%, 01/08/2029 | 0.53% |
| Bank of Montreal, 4.71%, 12/07/2027 | 0.52% |
| NTT Finance Corp., Series 16, 0.18%, 12/19/2025 | 0.52% |
| NTT Finance Corp., Series 17, 0.28%, 12/20/2027 | 0.51% |
| Electricite de France S.A., 6.13%, 06/02/2034 | 0.51% |
| NTT Finance Corp., Series 18, 0.38%, 09/20/2030 | 0.50% |
| Royal Bank of Canada, 4.63%, 05/01/2028 | 0.50% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI Global Climate 500 ETF
KLMT | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI Global Climate 500 ETF (the “Fund”) for the period June 24, 2024 (commencement of operations) to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment▼ | Costs paid as a percentage
of a $10,000 investment* |
| Invesco MSCI Global Climate 500 ETF | $4 | 0.10% |
▼ | The Fund commenced operations during the reporting period. Expenses for a full reporting period would be higher. |
| * | Annualized. |
How Did The Fund Perform During The Period?
• During the fiscal period ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's primary focus on broad-based developed market equities, it largely benefited from the market environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI ACWI Select Climate 500 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that are based on the securities in the Index.
• For the fiscal period ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 3.81%, differed from the return of the Index, 3.77%, primarily due to positive impacts of foreign fair valuation.
What contributed to performance?
Sector Allocations | Financials sector, followed by the industrials and consumer discretionary sectors, respectively.
Positions | Apple, Inc., an information technology company, and NVIDIA Corp., an information technology company.
What detracted from performance?
Sector Allocations | Energy sector, followed by the information technology sector and health care sector, respectively.
Positions | Microsoft Corp., an information technology company, and ASML Holding N.V., an information technology company.
How Has The Fund Historically Performed?
AVERAGE ANNUAL TOTAL RETURNS | Since
Inception
(06/26/24) |
| Invesco MSCI Global Climate 500 ETF — NAV Return | 3.81% |
| MSCI ACWI Select Climate 500 Index | 3.77% |
| MSCI ACWI (Net) | 4.03% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $1,679,618,228 |
| Total number of portfolio holdings | 502 |
| Total advisory fees paid | $577,549 |
| Portfolio turnover rate | 3% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 4.42% |
| Apple, Inc. | 4.41% |
| Microsoft Corp. | 3.83% |
| Amazon.com, Inc. | 2.32% |
| Meta Platforms, Inc., Class A | 1.68% |
| Alphabet, Inc., Class A | 1.52% |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 1.10% |
| Broadcom, Inc. | 1.03% |
| Alphabet, Inc., Class C | 1.01% |
| Tesla, Inc. | 0.98% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI Global Timber ETF
CUT | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI Global Timber ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco MSCI Global Timber ETF | $81 | 0.73%† |
† | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, global equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund underperformed broader global equity markets primarily due to its focus on the paper and forest products sub-industries.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI ACWI IMI Timber Select Capped Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 21.75%, differed from the return of the Index, 22.12%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sub-Industry Allocations | Paper & plastic packaging products & materials sub-industry, followed by the forest products and metal glass & plastic containers sub-industries, respectively.
Positions | International Paper Co., a paper & plastic packaging products & materials company, and DS Smith PLC, a paper & plastic packaging products & materials company.
What detracted from performance?
Sub-Industry Allocations | No sub-industries detracted from the Fund's performance during the period.
Positions | UPM-Kymmene OYJ, a paper products company, and Oji Holdings Corp., a paper products company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco MSCI Global Timber ETF — NAV Return | 21.75% | 6.79% | 5.82% |
| Blended - MSCI ACWI IMI Timber Select Capped Index (Net) | 22.12% | 6.89% | 5.96% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
| MSCI World Index (Net) | 33.68% | 12.03% | 9.78% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World Index (Net) to the MSCI ACWI (Net) to reflect that the MSCI ACWI (Net) can be considered more broadly representative of the overall applicable securities market.
- The Blended - MSCI ACWI IMI Timber Select Capped Index (Net) performance is comprised of the performance of the Beacon Global Timber Index, the Fund's former underlying index, until May 20, 2016, followed by the performance of the Index thereafter.
- Effective after the close of business on April 6, 2018, Guggenheim MSCI Global Timber ETF was reorganized into the Fund. Fund returns shown are blended returns of Guggenheim MSCI Global Timber ETF and the Fund.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $55,070,582 |
| Total number of portfolio holdings | 70 |
| Total advisory fees paid | $124,012 |
| Portfolio turnover rate | 32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Smurfit WestRock PLC | 5.86% |
| International Paper Co. | 5.73% |
| Packaging Corp. of America | 5.70% |
| Weyerhaeuser Co. | 5.07% |
| Amcor PLC | 5.05% |
| Avery Dennison Corp. | 4.77% |
| DS Smith PLC | 4.75% |
| Graphic Packaging Holding Co. | 4.26% |
| UPM-Kymmene OYJ | 4.18% |
| Suzano S.A. | 3.96% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI Green Building ETF
GBLD | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI Green Building ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco MSCI Green Building ETF | $43 | 0.38%† |
† | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, real estate had a much more constructive year than in recent years past, as declining interest rates generated fresh interest in the sector. While the Fund primarily invests in real estate companies, its focus on sustainable properties left it with a large underweight allocation to U.S. REITs and a large overweight allocation to Japanese REITs, which created a performance headwind despite the generally supportive environment.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the MSCI Global Green Building Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 23.99%, differed from the return of the Index, 24.30%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sub-Industry Allocations | Office REITs sub-industry, followed by the retail REITs and homebuilding sub-industries, respectively.
Positions | Alexandria Real Estate Equities, Inc., a health care REITs company and Unibail-Rodamco-Westfield SE, a retail REITs company.
What detracted from performance?
Sub-Industry Allocations | No sub-industries detracted from the Fund's performance during the period.
Positions | Nomura Real Estate Master Fund, Inc., a diversified REITs company and Daiwa House REIT Investment Corp., a diversified REITs company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year | Since
Inception
(04/22/21) |
| Invesco MSCI Green Building ETF — NAV Return | 23.99% | (5.56)% |
| MSCI Global Green Building Index (Net) | 24.30% | (5.61)% |
| MSCI All Country World IMI Index (Net) | 32.33% | 6.25% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $8,631,270 |
| Total number of portfolio holdings | 94 |
| Total advisory fees paid | $24,004 |
| Portfolio turnover rate | 13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alexandria Real Estate Equities, Inc. | 6.55% |
| Daiwa House Industry Co. Ltd. | 6.30% |
| BXP, Inc. | 4.48% |
| Unibail-Rodamco-Westfield SE | 3.64% |
| CapitaLand Integrated Commercial Trust | 3.24% |
| CapitaLand Ascendas REIT | 2.82% |
| Klepierre S.A. | 2.59% |
| Vornado Realty Trust | 2.50% |
| Nippon Building Fund, Inc. | 2.48% |
| Meritage Homes Corp. | 2.45% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P Emerging Markets Low Volatility ETF
EELV | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P Emerging Markets Low Volatility ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P Emerging Markets Low Volatility ETF | $32 | 0.29% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's focus on low volatility emerging market equities, it lagged the broader emerging market equity asset class.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P BMI Emerging Markets Low Volatility IndexTM (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 17.61%, differed from the return of the Index, 19.20%, primarily due to fees and expenses incurred by the Fund during the period, as well as the effect of good faith fair valuation on securities held by the Fund.
What contributed to performance?
Sector Allocations | Financials sector, followed by the information technology and communication services sectors, respectively.
Positions | Hon Hai Precision Industry Co. Ltd., an information technology company (no longer held at fiscal year-end) and Chicony Electronics Co. Ltd., an information technology company (no longer held at fiscal year-end).
What detracted from performance?
Sector Allocations | Materials sector, followed by the energy sector.
Positions | Formosa Plastics Corp., a materials company, and Formas Petrochemical Corp., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P Emerging Markets Low Volatility ETF — NAV Return | 17.61% | 5.29% | 2.61% |
| S&P BMI Emerging Markets Low Volatility Index™ (Net) | 19.20% | 6.18% | 3.45% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P BMI Emerging Markets Low Volatility Index™ (Net) to the MSCI Emerging Markets Index (Net) to reflect that the MSCI Emerging Markets Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $412,776,927 |
| Total number of portfolio holdings | 204 |
| Total advisory fees paid | $1,596,705 |
| Portfolio turnover rate | 78% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| IHH Healthcare Bhd. | 1.06% |
| RHB Bank Bhd. | 0.97% |
| Malayan Banking Bhd. | 0.95% |
| Tisco Financial Group PCL, NVDR | 0.94% |
| Chunghwa Telecom Co. Ltd. | 0.90% |
| President Chain Store Corp. | 0.88% |
| Saudi Arabian Oil Co. | 0.85% |
| Taiwan High Speed Rail Corp. | 0.85% |
| Chang Hwa Commercial Bank Ltd. | 0.85% |
| Hong Leong Bank Bhd. | 0.83% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P Emerging Markets Momentum ETF
EEMO | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P Emerging Markets Momentum ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P Emerging Markets Momentum ETF | $33 | 0.29% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, emerging market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's focus on securities with strong recent performance and the continued strength of equities during the period, the Fund outperformed the broader emerging market equity asset class.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Momentum Emerging Plus LargeMidCap Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities of companies that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 30.19%, differed from the return of the Index, 36.09%, primarily due to fees and expenses incurred by the Fund during the period, the negative impact of foreign fair valuation, and the negative effect of capital gains tax on Indian securities.
What contributed to performance?
Sector Allocations | Financials sector, followed by the industrials and information technology sectors, respectively.
Positions | Bharti Airtel Ltd., a communication services company, and Quanta Computer, Inc., an information technology company (no longer held at fiscal year-end).
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Infosys Ltd., an information technology company, and Ecopro Co. Ltd., an industrials company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P Emerging Markets Momentum ETF — NAV Return | 30.19% | 2.35% | 1.19% |
| Blended - S&P Momentum Emerging Plus LargeMidCap Index (Net) | 36.09% | 3.91% | 2.92% |
| MSCI Emerging Markets Index (Net) | 25.32% | 3.93% | 3.43% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P Momentum Emerging Plus LargeMidCap Index to the MSCI Emerging Markets Index (Net) to reflect that the MSCI Emerging Markets Index (Net) can be considered more broadly representative of the overall applicable securities market.
- The Blended - S&P Momentum Emerging Plus LargeMidCap Index (Net) performance is comprised of the performance of the S&P BMI Emerging Markets High Beta Index™, the Fund's former underlying index, until March 21, 2016, followed by the performance of the Index thereafter.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,071,496 |
| Total number of portfolio holdings | 219 |
| Total advisory fees paid | $20,849 |
| Portfolio turnover rate | 104% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 9.89% |
| Hon Hai Precision Industry Co. Ltd. | 4.27% |
| Infosys Ltd. | 3.42% |
| Bharti Airtel Ltd. | 3.38% |
| MediaTek, Inc. | 3.30% |
| Mahindra & Mahindra Ltd. | 2.00% |
| NU Holdings Ltd., Class A | 1.76% |
| Zomato Ltd. | 1.74% |
| ACWA Power Co. | 1.50% |
| NTPC Ltd. | 1.44% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P Global Water Index ETF
CGW | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P Global Water Index ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P Global Water Index ETF | $68 | 0.59% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, global equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund outperformed the broader global equities asset class due primarily to its security selection in and overweight allocation to the industrials sector.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Global Water Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 29.49%, differed from the return of the Index, 29.54%, primarily due to primarily due to fees and expenses that the Fund incurred during the period, which were partially offset by favorable dividend tax withholding on foreign securities as well as income from the securities lending program in which the Fund participates.
What contributed to performance?
Industry Allocations | Machinery industry, followed by the water utilities and building products industries, respectively.
Positions | Xylem, Inc., a machinery company, and ACWA Power Co., an independent power and renewable electricity producers company (no longer held at fiscal year-end).
What detracted from performance?
Industry Allocations | Multi-utilities industry.
Positions | Orbia Advance Corp. S.A.B. de C.V., a commodity chemicals company, and Supreme Industries Ltd., a commodity chemicals company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P Global Water Index ETF — NAV Return | 29.49% | 9.54% | 9.22% |
| S&P Global Water Index (Net) | 29.54% | 9.77% | 9.48% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective after the close of business on April 6, 2018, Guggenheim S&P Global Water Index ETF was reorganized into the Fund. Fund returns shown are blended returns of Guggenheim S&P Global Water Index ETF and the Fund.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $959,808,437 |
| Total number of portfolio holdings | 66 |
| Total advisory fees paid | $4,847,160 |
| Portfolio turnover rate | 42% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| American Water Works Co., Inc. | 8.35% |
| Xylem, Inc. | 7.35% |
| United Utilities Group PLC | 5.77% |
| Severn Trent PLC | 5.62% |
| Veralto Corp. | 5.58% |
| Essential Utilities, Inc. | 4.63% |
| Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | 4.63% |
| Advanced Drainage Systems, Inc. | 4.26% |
| Geberit AG | 4.18% |
| Veolia Environnement S.A. | 4.07% |
| * Excluding money market fund holdings, if any. | |
Industry allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P International Developed Low Volatility ETF
IDLV | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P International Developed Low Volatility ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P International Developed Low Volatility ETF | $27 | 0.25% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's focus on low volatility developed market equities, it lagged the broader developed market equity asset class.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P BMI International Developed Low VolatilityTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 17.10%, differed from the return of the Index, 17.26%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Financials sector, followed by the industrials and consumer staples sectors, respectively.
Positions | Manulife Financial Corp., a financials company, and Westpac Banking Corp., a financials company.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Spark New Zealand Ltd., a communication services company, and CA Immobilien Anlagen AG, a real estate company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P International Developed Low Volatility ETF — NAV Return | 17.10% | 0.36% | 2.87% |
| S&P BMI International Developed Low Volatility™ Index (Net) | 17.26% | 0.41% | 2.92% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P BMI International Developed Low Volatility™ Index (Net) to the MSCI EAFE® Index (Net) to reflect that the MSCI EAFE® Index (Net) can be considered more broadly representative of the overall applicable securities market.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $257,693,659 |
| Total number of portfolio holdings | 202 |
| Total advisory fees paid | $1,106,055 |
| Portfolio turnover rate | 73% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Pembina Pipeline Corp. | 0.75% |
| Koninklijke KPN N.V. | 0.75% |
| Deutsche Telekom AG | 0.70% |
| London Stock Exchange Group PLC | 0.69% |
| Danone S.A. | 0.66% |
| Singapore Exchange Ltd. | 0.65% |
| United Overseas Bank Ltd. | 0.65% |
| Zurich Insurance Group AG | 0.65% |
| Oversea-Chinese Banking Corp. Ltd. | 0.63% |
| Groupe Bruxelles Lambert N.V. | 0.61% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P International Developed Momentum ETF
IDMO | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P International Developed Momentum ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P International Developed Momentum ETF | $29 | 0.25% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. Given the Fund's focus on securities with strong recent performance and the continued strength of equities during the period, the Fund outperformed the broader developed market equity asset class.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P World Ex-U.S. Momentum Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 31.34%, differed from the return of the Index, 31.64%, primarily due to fees and expenses that the Fund incurred during the period.
What contributed to performance?
Sector Allocations | Industrials sector, followed by the financials and information technology sectors, respectively.
Positions | SAP SE, an information technology company, and Hitachi Ltd., an industrials company.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Toyota Motor Corp., a consumer discretionary company (no longer held at fiscal year-end), and Tokyo Electron Ltd., an information technology company (no longer held at fiscal year-end).
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P International Developed Momentum ETF — NAV Return | 31.34% | 11.78% | 6.68% |
| Blended - Invesco S&P International Developed Momentum ETF Benchmark | 31.64% | 11.92% | 6.97% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P World Ex-U.S. Momentum Index to the MSCI EAFE® Index (Net) to reflect that the MSCI EAFE® Index (Net) can be considered more broadly representative of the overall applicable securities market.
- Effective after close of business May 31, 2024, the Index changed its name from the S&P Momentum Developed ex-U.S. & South Korea LargeMidCap Index to the S&P World Ex-U.S. Momentum Index. The methodology remains the same.
- The Blended - Invesco S&P International Developed Momentum ETF Benchmark performance is comprised of the performance of the S&P BMI International Developed High Beta Index™ (Net), the Fund's former underlying index, until March 21, 2016, followed by the performance of the Index thereafter.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $260,095,459 |
| Total number of portfolio holdings | 185 |
| Total advisory fees paid | $449,954 |
| Portfolio turnover rate | 115% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 6.07% |
| SAP SE | 4.72% |
| Commonwealth Bank of Australia | 2.94% |
| Hitachi Ltd. | 2.31% |
| Mitsubishi UFJ Financial Group, Inc. | 2.21% |
| Schneider Electric SE | 2.01% |
| RELX PLC | 1.86% |
| Allianz SE | 1.78% |
| Recruit Holdings Co. Ltd. | 1.75% |
| Deutsche Telekom AG | 1.75% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco S&P International Developed Quality ETF
IDHQ | NYSE Arca, Inc.
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco S&P International Developed Quality ETF (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 983-0903.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
| Invesco S&P International Developed Quality ETF | $32 | 0.29% |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. The Fund slightly lagged the broader developed market equity asset class due primarily to its overweight allocation to the energy sector and underweight allocation to the financials sector.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the S&P Quality Developed ex-U.S. LargeMidCap Index (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.
• For the fiscal year ended October 31, 2024, the Fund's performance, on a net asset value ("NAV") basis, 21.17%, differed from the return of the Index, 21.43%, primarily due to fees and expenses that the Fund incurred during the period, which were partially offset by favorable dividend tax withholding on foreign securities.
What contributed to performance?
Sector Allocations | Industrials sector, followed by the information technology and health care sectors, respectively.
Positions | ASML Holding N.V., an information technology company, and Novo Nordisk A/S, Class B, a health care company.
What detracted from performance?
Sector Allocations | No sectors detracted from the Fund's performance during the period.
Positions | Nestle S.A., a consumer staples company, and AstraZeneca PLC, a health care company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
AVERAGE ANNUAL TOTAL RETURNS |
1 Year |
5 Years |
10 Years |
| Invesco S&P International Developed Quality ETF — NAV Return | 21.17% | 6.67% | 6.85% |
| Blended - S&P Quality Developed ex-U.S. LargeMidCap Index (Net) | 21.43% | 6.83% | 7.01% |
| MSCI EAFE® Index (Net) | 22.97% | 6.24% | 5.27% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/ETFs for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
Notes Regarding Indexes and Fund Performance History:
- Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the S&P Quality Developed ex-U.S. LargeMidCap Index to the MSCI EAFE® Index (Net) to reflect that the MSCI EAFE® Index (Net) can be considered more broadly representative of the overall applicable securities market.
- The Blended - S&P Quality Developed ex-U.S. LargeMidCap Index (Net) performance is comprised of the performance of the S&P International Developed High Quality Rankings Index (Net), the Fund's former underlying index, until March 18, 2016, followed by the performance of the Index thereafter.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $382,254,155 |
| Total number of portfolio holdings | 185 |
| Total advisory fees paid | $842,816 |
| Portfolio turnover rate | 43% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novartis AG | 5.38% |
| Nestle S.A. | 4.66% |
| Novo Nordisk A/S, Class B | 4.07% |
| Roche Holding AG | 3.96% |
| SAP SE | 3.36% |
| ASML Holding N.V. | 3.32% |
| AstraZeneca PLC | 3.18% |
| Unilever PLC | 2.93% |
| LVMH Moet Hennessy Louis Vuitton SE | 2.50% |
| TotalEnergies SE | 2.19% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
Only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your broker-dealer.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
The Registrant has adopted a Code of Ethics (the "Code") that applies to the Registrant's Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"). This Code is filed as an exhibit to this report on Form N-CSR under Item 19(a)(1). No substantive amendments to this Code were made during the reporting period. Administration of the Code was transferred from the Chief Legal Officer to the Chief Compliance Officer during the reporting period. There were no waivers for the fiscal year ended October 31, 2024.
Item 3. Audit Committee Financial Expert.
The Registrant's Board of Trustees (the "Board") has determined that the Registrant has four "audit committee financial experts" serving on its audit committee: Mr. Marc M. Kole, Ms. Joanne Pace, Mr. Gary R. Wicker and Mr. Donald H. Wilson. Each of these audit committee members is "independent," meaning that he/she is not an "interested person" of the Registrant (as that term is defined in Section 2(a)(19) of the Act) and he/she does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in his/her capacity as a Board or committee member).
An "audit committee financial expert" is not an "expert" for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an "audit committee financial expert." Further, the designation of a person as an "audit committee financial expert" does not mean that a person has any greater duties, obligations, or liability than those imposed on a person without the "audit committee financial expert" designation. Similarly, the designation of a person as an "audit committee financial expert" does not affect the duties, obligations, or liability of any other member of the audit committee or Board.
Item 4. Principal Accountant Fees and Services.
Fees Billed by PwC to the Registrant
PricewaterhouseCoopers LLP (“PwC”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees for pre-approved services rendered to the Registrant for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all audit and non-audit services provided to the Registrant.
| | | |
| Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2024 | Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2023 |
Audit Fees | $ 469,680 | $ 432,180 |
Audit-Related Fees(1) | $ 0 | $ 11,000 |
Tax Fees(2) | $ 289,440 | $ 308,200 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 759,120 | $ 751,380 |
(1) | Audit-Related Fees for the fiscal year ended 2023 includes fees billed for reviewing regulatory filings. |
(2) | Tax Fees for the fiscal years ended 2024 and 2023 include fees billed for preparation of U.S. Tax Returns and Taxable Income calculations, including excise and year-to-date estimates for various book-to-tax differences. |
Fees Billed by PwC Related to Invesco and Affiliates
PwC billed Invesco Capital Management LLC (“Invesco” or “Adviser”), the Registrant’s investment adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Affiliates”), aggregate fees for pre-approved non-audit services rendered to Invesco and Affiliates for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all non-audit services provided to Invesco and Affiliates that were required to be pre-approved.
| | |
| Fees Billed for Non-Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2024 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | Fees Billed for Non-Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2023 That Were Required to be Pre-Approved by the Registrant’s Audit Committee |
Audit-Related Fees(1) | $ 1,134,000 | $ 1,067,000 |
Tax Fees | $ 0 | $ 0 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 1,134,000 | $ 1,067,000 |
(1) | Audit-Related Fees for the fiscal years ended 2024 and 2023 include fees billed related to reviewing controls at a service organization. |
(e)(1)Audit Committee Pre-Approval Policies and Procedures
Pre-Approval of Audit and Non-Audit Services Policies and Procedures
As Adopted by the Audit Committee of the Invesco ETFs
| | |
Applicable to | Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Commodity Fund Trust and Invesco Exchange-Traded Self-Indexed Fund Trust (collectively the “Funds”) |
Risk Addressed by Policy | Approval of Audit and Non-Audit Services |
Relevant Law and Other Sources | Sarbanes-Oxley Act of 2002; Regulation S-X. |
Last Reviewed by Compliance for Accuracy | June 15, 2018 |
Effective Date | June 26, 2009 |
Amended Dates | March 12, 2015 and June 15, 2018 |
Statement of Principles
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committee of the Funds’ (the “Audit Committee”) Board of Trustees (the “Board”) is responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committee pre-approves the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.
Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”) or require the specific pre-approval of the Audit Committee (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committee before payment is made. The Audit Committee will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.
The Audit Committee will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee. The term of any general pre-approval runs from the date of such pre-approval through June 30th of the following year, unless the Audit Committee considers a different period and states otherwise. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committee in fulfilling its responsibilities.
Delegation
The Chairman of the Audit Committee (or, in his or her absence, any member of the Audit Committee) may grant specific pre-approval for non-prohibited services. All such delegated pre-approvals shall be presented to the Audit Committee no later than the next Audit Committee meeting.
Audit Services
The annual Audit services engagement terms will be subject to specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committee may grant either general or specific pre-approval of other Audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.
Non-Audit Services
The Audit Committee may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committee believes that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committee’s general principles and policies as set forth herein.
Audit-Related Services
“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; and assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities.
Tax Services
“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.
Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committee pre-approval of permissible Tax services, the Auditor shall:
| 1. | Describe in writing to the Audit Committee, which writing may be in the form of the proposed engagement letter: |
| a. | The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and |
| b. | Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service; |
| 2. | Discuss with the Audit Committee the potential effects of the services on the independence of the Auditor; and |
| 3. | Document the substance of its discussion with the Audit Committee. |
All Other Auditor Services
The Audit Committee may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.
Pre-Approval Fee Levels or Established Amounts
Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committee at the quarterly Audit Committee meeting and will require specific approval by the Audit Committee before payment is made. The Audit Committee will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.
Procedures
On an annual basis, the Auditor will submit to the Audit Committee for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.
Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committee will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committee.
Each request to provide services that require specific approval by the Audit Committee shall be submitted to the Audit Committee jointly by the Funds’ Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the pre-approval policies and procedures and the SEC Rules.
Each request to provide Tax services under either the general or specific pre-approval of the Audit Committee will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committee the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.
Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committee for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.
The Audit Committee has designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committee on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management will immediately report to the Chairman of the Audit Committee any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management.
Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures
Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)
| • | | Bookkeeping or other services related to the accounting records or financial statements of the audit client |
| • | | Financial information systems design and implementation |
| • | | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
| • | | Actuarial services |
| • | | Internal audit outsourcing services |
Categorically Prohibited Non-Audit Services
| • | | Management functions |
| • | | Human resources |
| • | | Broker-dealer, investment adviser, or investment banking services |
| • | | Legal services |
| • | | Expert services unrelated to the audit |
| • | | Any service or product provided for a contingent fee or a commission |
| • | | Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance |
| • | | Tax services for persons in financial reporting oversight roles at the Fund |
| • | | Any other service that the Public Company Oversight Board determines by regulation is impermissible. |
(e)(2) | There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X. |
(g) | In addition to the amounts shown in the tables above, PwC billed Invesco and Affiliates aggregate fees of $6,466,000 for the fiscal year ended October 31, 2024 and $6,507,000 for the fiscal year ended October 31, 2023 for non-audit services not required to be pre-approved by the Registrant’s Audit Committee. In total, PwC billed the Registrant, Invesco and Affiliates aggregate non-audit fees of $7,889,440 for the fiscal year ended October 31, 2024 and $7,882,200 for the fiscal year ended October 31, 2023. |
(h) | With respect to the non-audit services above billed to Invesco and Affiliates that were not required to be pre-approved by the Registrant’s Audit Committee, the Audit Committee received information from PwC about such services, including by way of comparison, that PwC provided audit services to entities within the Investment Company Complex, as defined by Rule 2-01(f)(14) of Regulation S-X, of approximately $34 million and non-audit services of approximately $26 million for the fiscal year ended 2024. The Audit Committee considered this information in evaluating PwC’s independence. |
Item 5. Audit Committee of Listed Registrants.
(a) The Registrant has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, which consists solely of independent trustees. The Audit Committee members are Marc M. Kole, Joanne Pace, Gary R. Wicker, and Donald H. Wilson
.(b) Not applicable.
(a) Investments in securities of unaffiliated issuers is filed under Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Invesco Annual Financial Statements and Other Information | Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF |
| Invesco Alerian Galaxy Crypto Economy ETF |
Table of Contents
Consolidated Schedules of Investments | |
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Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)
October 31, 2024
Consolidated Schedule of Investments(a)
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Common Stocks & Other Equity Interests-83.58% |
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Hive Digital Technologies Ltd.(b) | | | |
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Alibaba Group Holding Ltd., ADR(c) | | | |
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Samsung Electronics Co. Ltd. | | | |
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Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | | |
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Advanced Micro Devices, Inc.(b) | | | |
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Applied Digital Corp.(b)(c) | | | |
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Bitdeer Technologies Group(b)(c) | | | |
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Cipher Mining, Inc.(b)(c) | | | |
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Coinbase Global, Inc., Class A(b) | | | |
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Galaxy Digital Holdings Ltd., Class H(b) | | | |
Goldman Sachs Group, Inc. (The) | | | |
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United States-(continued) |
Honeywell International, Inc. | | | |
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International Business Machines Corp. | | | |
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MARA Holdings, Inc.(b)(c) | | | |
Mastercard, Inc., Class A | | | |
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MicroStrategy, Inc., Class A(b) | | | |
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Riot Platforms, Inc.(b)(c) | | | |
Robinhood Markets, Inc., Class A(b) | | | |
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SoFi Technologies, Inc.(b) | | | |
Stronghold Digital Mining, Inc., Class A(b) | | | |
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Verizon Communications, Inc. | | | |
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Total Common Stocks & Other Equity Interests (Cost $2,050,828) | |
Exchange-Traded Funds-16.31% |
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Grayscale Bitcoin Trust BTC(b) | | | |
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Fidelity Wise Origin Bitcoin Fund(b) | | | |
ARK 21Shares Bitcoin ETF(b) | | | |
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Grayscale Bitcoin Mini Trust (BTC)(b) | | | |
Total Exchange-Traded Funds (Cost $400,126) | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.89% (Cost $2,450,954) | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-20.28% |
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)—(continued)
October 31, 2024
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Money Market Funds-(continued) |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $682,103) | |
TOTAL INVESTMENTS IN SECURITIES-120.17% (Cost $3,133,057) | |
OTHER ASSETS LESS LIABILITIES-(20.17)% | |
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Investment Abbreviations: |
ADR-American Depositary Receipt |
|
Notes to Consolidated Schedule of Investments: |
| The Consolidated Schedule of Investments includes the accounts of the wholly-owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidations. |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| 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 October 31, 2024 represented 1.23% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
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| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Invesco Alerian Galaxy Crypto Economy ETF (SATO)
October 31, 2024
Consolidated Schedule of Investments(a)
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Common Stocks & Other Equity Interests-84.78% |
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Hive Digital Technologies Ltd.(b) | | | |
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Samsung Electronics Co. Ltd. | | | |
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Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | | |
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Advanced Micro Devices, Inc.(b) | | | |
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Applied Digital Corp.(b)(c) | | | |
Bakkt Holdings, Inc.(b)(c) | | | |
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Bitdeer Technologies Group(b)(c) | | | |
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Cipher Mining, Inc.(b)(c) | | | |
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Coinbase Global, Inc., Class A(b) | | | |
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Galaxy Digital Holdings Ltd., Class H(b) | | | |
Goldman Sachs Group, Inc. (The) | | | |
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MARA Holdings, Inc.(b)(c) | | | |
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United States-(continued) |
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MicroStrategy, Inc., Class A(b)(c) | | | |
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Riot Platforms, Inc.(b)(c) | | | |
Robinhood Markets, Inc., Class A(b) | | | |
SoFi Technologies, Inc.(b) | | | |
Stronghold Digital Mining, Inc., Class A(b) | | | |
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Total Common Stocks & Other Equity Interests (Cost $4,855,962) | |
Exchange-Traded Funds-15.20% |
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Grayscale Bitcoin Trust BTC(b) | | | |
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Fidelity Wise Origin Bitcoin Fund(b) | | | |
ARK 21Shares Bitcoin ETF(b) | | | |
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Grayscale Bitcoin Mini Trust (BTC)(b) | | | |
Total Exchange-Traded Funds (Cost $947,878) | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.98% (Cost $5,803,840) | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-34.92% |
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $2,962,139) | |
TOTAL INVESTMENTS IN SECURITIES-134.90% (Cost $8,765,979) | |
OTHER ASSETS LESS LIABILITIES-(34.90)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
|
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Invesco Alerian Galaxy Crypto Economy ETF (SATO)—(continued)
October 31, 2024
Notes to Consolidated Schedule of Investments: |
| The Consolidated Schedule of Investments includes the accounts of the wholly-owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidations. |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| 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 October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Consolidated Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Consolidated Statements of Assets and Liabilities
| Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) | Invesco Alerian Galaxy Crypto Economy ETF (SATO) |
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Unaffiliated investments in securities, at value(a) | | |
Affiliated investments in securities, at value | | |
Foreign currencies, at value | | |
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Collateral upon return of securities loaned | | |
Accrued unitary management fees | | |
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Shares of beneficial interest | | |
Distributable earnings (loss) | | |
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Shares outstanding (unlimited amount authorized, $0.01 par value) | | |
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Unaffiliated investments in securities, at cost | | |
Affiliated investments in securities, at cost | | |
Foreign currencies, at cost | | |
(a)Includes securities on loan with an aggregate value of: | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Consolidated Statements of Operations
For the year ended October 31, 2024
| Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) | Invesco Alerian Galaxy Crypto Economy ETF (SATO) |
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Unaffiliated dividend income | | |
Affiliated dividend income | | |
Securities lending income, net | | |
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Realized and unrealized gain (loss) from: | | |
Net realized gain (loss) from: | | |
Unaffiliated investment securities | | |
Affiliated investment securities | | |
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Change in net unrealized appreciation (depreciation) of: | | |
Unaffiliated investment securities | | |
Affiliated investment securities | | |
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Change in net unrealized appreciation | | |
Net realized and unrealized gain | | |
Net increase in net assets resulting from operations | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Consolidated Statements of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) | Invesco Alerian Galaxy Crypto Economy ETF (SATO) |
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Change in net unrealized appreciation | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
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Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase in net assets | | | | |
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Changes in Shares Outstanding: | | | | |
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Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Consolidated Financial Highlights
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)
| | For the Period October 5, 2021(a) Through October 31, 2021 |
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Per Share Operating Performance: | | | | |
Net asset value at beginning of period | | | | |
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Net realized and unrealized gain (loss) on investments | | | | |
Total from investment operations | | | | |
Distributions to shareholders from: | | | | |
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Net asset value at end of period | | | | |
Market price at end of period(c) | | | | |
Net Asset Value Total Return(d) | | | | |
Market Price Total Return(d) | | | | |
Ratios/Supplemental Data: | | | | |
Net assets at end of period (000’s omitted) | | | | |
Ratio to average net assets of: | | | | |
| | | | |
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Portfolio turnover rate(g) | | | | |
| Commencement of investment operations. |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| The net asset value total return from Fund Inception (October 7, 2021, the first day of trading on the exchange) to October 31, 2021 was 10.48%. The market price total return from Fund Inception to October 31, 2021 was 9.34%. |
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| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Consolidated Financial Highlights—(continued)
Invesco Alerian Galaxy Crypto Economy ETF (SATO)
| | For the Period October 5, 2021(a) Through October 31, 2021 |
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Per Share Operating Performance: | | | | |
Net asset value at beginning of period | | | | |
Net investment income (loss)(b) | | | | |
Net realized and unrealized gain (loss) on investments | | | | |
Total from investment operations | | | | |
Distributions to shareholders from: | | | | |
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| | | | |
Net asset value at end of period | | | | |
Market price at end of period(c) | | | | |
Net Asset Value Total Return(d) | | | | |
Market Price Total Return(d) | | | | |
Ratios/Supplemental Data: | | | | |
Net assets at end of period (000’s omitted) | | | | |
Ratio to average net assets of: | | | | |
| | | | |
Net investment income (loss) | | | | |
Portfolio turnover rate(g) | | | | |
| Commencement of investment operations. |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| The net asset value total return from Fund Inception (October 7, 2021, the first day of trading on the exchange) to October 31, 2021 was 16.25%. The market price total return from Fund Inception to October 31, 2021 was 13.63%. |
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| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Consolidated Financial Statements which are an integral part of the consolidated financial statements.
Notes to Consolidated Financial Statements
Invesco Exchange-Traded Fund Trust II
October 31, 2024
Invesco Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust and is authorized to have multiple series of portfolios. Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following Funds and their respective wholly-owned subsidiaries (each, a "Subsidiary") organized under the laws of the Cayman Islands:
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Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) | "Alerian Galaxy Blockchain Users and Decentralized Commerce ETF" | |
Invesco Alerian Galaxy Crypto Economy ETF (SATO) | "Alerian Galaxy Crypto Economy ETF" | |
The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on Cboe BZX Exchange, Inc.
The market price of each Share may differ to some degree from a Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit”, as set forth in each Fund’s prospectus. Creation Units are issued and redeemed principally in exchange for cash and/or the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by authorized participants (“APs”), the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”):
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | Alerian Galaxy Global Blockchain Equity, Trusts and ETPs Index |
Alerian Galaxy Crypto Economy ETF | Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index |
Each Fund’s investment in its respective Subsidiary is expected to provide the Fund with exposure to exchange-traded products and private investment trusts traded over-the-counter that are linked to cryptocurrencies. Each Fund may invest up to 25% of its respective total assets in its Subsidiary.
NOTE 2—Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their consolidated financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
A.
Security Valuation - Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day NAV per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related
to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Capital Management LLC (the “Adviser”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange (“NYSE”), closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depositary receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, the potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer-specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to a Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statements of Operations and the Consolidated Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Consolidated Financial Highlights. Transaction costs are included in the calculation of a Fund’s NAV and, accordingly, they reduce a Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statements of Operations and the Consolidated Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Consolidated Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
C.
Country Determination - For the purposes of presentation in the Consolidated Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether each Fund’s Underlying Index has made a country determination and may include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Dividends and Distributions to Shareholders - Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on the ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on the ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s consolidated financial statements as a tax return of capital at fiscal year-end.
E.
Federal Income Taxes - Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Each Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, each Fund is required to increase its taxable income by its share of its Subsidiary’s income. Net investment losses of each Subsidiary cannot be deducted by each Fund in the current period nor carried forward to offset taxable income in future periods.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes - Each Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. Each Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. Each Fund will record a receivable for such tax refunds based on several
factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign tax reclaims on the Consolidated Statements of Assets and Liabilities. There is no guarantee that a Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Consolidated Statements of Operations, and any related interest is included in Unaffiliated interest income. Each Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are excluded from the unitary management fee and are reflected on the Consolidated Statements of Operations as Professional fees, if any. In the event tax refunds received by a Fund during the fiscal year exceed the foreign withholding taxes paid by a Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the fiscal year ended October 31, 2024, the Funds did not enter into any closing agreements.
G.
Expenses - Each Fund has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust or the Adviser (an "Interested Trustee"), or (iii) any other matters that directly benefit the Adviser).
Expenses of the Trust that are excluded from a Fund’s unitary management fee and are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are excluded from a Fund’s unitary management fee and are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying consolidated financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
H.
Accounting Estimates - The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. All inter-company accounts and transactions have been eliminated in consolidation. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.
I.
Indemnifications - Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Also, under each Subsidiary’s organizational documents, the directors and officers of the Subsidiary are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Each Board member who is not an “interested person” (as defined in the 1940 Act) of the Trust or the Adviser (each, an “Independent Trustee”) is also indemnified against certain liabilities arising out of the performance of their duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending - Each Fund may participate in securities lending and may loan portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Consolidated Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on
the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. For Funds that participated in securities lending, dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income, net on the Consolidated Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Consolidated Statements of Assets and Liabilities.
Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a securities lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the fiscal year ended October 31, 2024, each Fund had affiliated securities lending transactions with Invesco. Fees paid to Invesco for securities lending agent services, which are included in Securities lending income, net on the Consolidated Statements of Operations, were incurred by each Fund as listed below:
| |
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | |
Alerian Galaxy Crypto Economy ETF | |
K.
Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. Each Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statements of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.
Each Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which a Fund invests.
The performance of a Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause a Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that a Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of a Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Consolidated Statements of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
ADR and GDR Risk. The Funds may invest in American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing the underlying foreign securities directly in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks, because their values depend on the performance of the non-dollar denominated underlying foreign securities. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.
AP Concentration Risk. Only APs may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Additionally, investments in non-U.S. securities may have lower trading volumes or could experience extended market closures or trading halts. To the extent that a Fund invests in non-U.S. securities, it may face increased risks that APs may not be able to effectively create or redeem Creation Units, or that the Shares may be halted and/or delisted.
Blockchain Company Investments Risk. Companies engaged in the development, enablement and acquisition of blockchain technologies are subject to a number of risks. Blockchain technology is new and many of its uses may be untested. The mechanics of using distributed ledger technology to transact in other types of assets, such as securities or derivatives, is less clear. There is no assurance that widespread adoption will occur. Furthermore, the development and acceptance of competing platforms or technologies may cause consumers or investors to use an alternative to blockchains. A lack of expansion in the usage of blockchain technology could adversely affect the underlying holdings of the Funds. Moreover, the extent to which companies held by the Funds utilize blockchain technology may vary, and it is possible that even widespread adoption of blockchain technology may not result in a material impact on the stock price of such companies.
Furthermore, companies that are developing applications of blockchain technology may not in fact do so or may not be able to capitalize on those blockchain technologies. A proliferation of recent startups attempting to apply blockchain technology in different contexts means the possibility of conflicting intellectual property claims could be a risk to an issuer, its operations or its business. This could also pose a risk to blockchain platforms that permit transactions in digital securities. Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in the viability of blockchain may adversely affect an investment in the Funds. Additionally, blockchain technology is new, and as such may be subject to future laws or regulations. Any such regulatory changes affecting blockchain technology may adversely impact an investment in companies utilizing this technology.
Transacting on a blockchain depends in part specifically on the use of cryptographic keys that are required to access a user’s account (or “wallet”). The theft, loss or destruction of these keys impairs the value of ownership claims users have over the relevant assets being represented by the ledger (whether “smart contracts,” securities, currency or other digital assets). The theft, loss or destruction of private or public keys needed to transact on a blockchain could also adversely affect a company’s business or operations if it were dependent on the ledger.
In addition, because blockchain functionality relies on the Internet, a significant disruption of Internet connectivity affecting large numbers of users or geographic areas could impede the functionality of blockchain technologies and adversely affect the Funds. In addition, certain features of blockchain technology, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, may increase the risk of fraud or cyber-attack by potentially reducing the likelihood of a coordinated response.
Cryptocurrency Risk. Cryptocurrencies (also referred to as “virtual currencies” and “digital currencies”) are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies. While the Funds will not invest directly in cryptocurrencies, the value of the Funds’ investments in cryptocurrency-linked assets (including private trusts and ETPs) is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of a digital currency could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in a digital currency network or a change in user preference to competing cryptocurrencies. Cryptocurrency is a new technological innovation with a limited history; it is a highly speculative asset, and the Funds’ exposure to cryptocurrency-linked assets could result in substantial losses to the Funds.
Cryptocurrencies trade on exchanges, which are largely unregulated and, therefore, are more exposed to fraud and failure than established, regulated exchanges for securities, derivatives and other currencies. Cryptocurrency exchanges have in the past, and may in the future, cease operating temporarily or even permanently, resulting in the potential loss of users’ cryptocurrency or other market disruptions. Cryptocurrency exchanges are more exposed to the risk of market manipulation than exchanges for traditional assets. Cryptocurrency exchanges that are regulated typically must comply with minimum net capital, cybersecurity, and anti-money laundering requirements, but are not typically required to protect customers or their markets to the same extent that regulated securities exchanges or futures exchanges are required to do so. Furthermore, many cryptocurrency exchanges lack certain safeguards established by traditional exchanges to enhance the stability of trading on the exchange, such as measures designed to prevent sudden drops in value of items traded on the exchange (i.e., “flash crashes”). As a result, the prices of cryptocurrencies on exchanges may be subject to larger and more frequent sudden
declines than assets traded on traditional exchanges. In addition, cryptocurrency exchanges are also subject to the risk of cybersecurity threats and have been breached, resulting in the theft and/or loss of cryptocurrencies. A cyber or other security breach or a business failure of a cryptocurrency exchange or custodian may affect the price of a particular cryptocurrency or cryptocurrencies generally. A risk also exists with respect to malicious actors or previously unknown vulnerabilities, which may adversely affect the value of a digital currency.
Currently, there is relatively limited use of cryptocurrency in the retail and commercial marketplace, which contributes to price volatility. A lack of expansion by cryptocurrencies into retail and commercial markets, or a contraction of such use, may result in increased volatility or a reduction in the value of cryptocurrencies, either of which could adversely impact a Fund’s investment in cryptocurrency. In addition, to the extent market participants develop a preference for one cryptocurrency over another, the value of the less preferred cryptocurrency would likely be adversely affected.
Currency Risk. Because each Fund’s NAV is determined in U.S. dollars, a Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar. Generally, an increase in the value of the U.S. dollar against a foreign currency will reduce the value of a security denominated in that foreign currency, thereby decreasing a Fund’s overall NAV. Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions, causing an adverse impact on a Fund. As a result, investors have the potential for losses regardless of the length of time they intend to hold Shares.
Digital Asset Company Investments Risk. Companies engaged in the development, enablement and acquisition of digital assets and cryptocurrencies are subject to a number of risks. The technology relating to digital assets, including blockchain, is developing and the risks associated with digital assets may not fully emerge until the technology is widely used. Cryptocurrencies and blockchain technology are new and many of their uses may be untested. The mechanics of using distributed ledger technology to transact in other types of assets, such as securities or derivatives, is less clear. There is no assurance that widespread adoption will occur. Furthermore, the development and acceptance of competing platforms or technologies may cause consumers or investors to use an alternative to cryptocurrencies. A lack of expansion in the usage of cryptocurrencies could adversely affect an investment in the Funds.
Currently, there are relatively few companies for which digital assets represents an attributable and significant revenue stream. Therefore, the values of the companies included in an Underlying Index may not be a reflection of their connection to digital assets, but may be based on other business operations. Furthermore, companies that are developing applications of digital assets and cryptocurrencies may not in fact do so or may not be able to capitalize on those digital assets. Blockchain technology also may never be implemented to a scale that provides identifiable economic benefit to the companies included in an Underlying Index, which could adversely affect an investment in the Funds. A proliferation of recent startups attempting to apply blockchain technology in different contexts means the possibility of conflicting intellectual property claims could be a risk to an issuer, its operations or its business. This could also pose a risk to blockchain platforms that permit transactions in digital securities. Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in the viability of blockchain and/or cryptocurrencies may adversely affect an investment in the Funds.
There may be risks posed by the lack of regulation for digital assets and any future regulatory developments could affect the viability and expansion of the use of digital assets.
Emerging Markets Investment Risk. Investments in the securities of issuers in emerging market countries involve risks often not associated with investments in the securities of issuers in developed countries. Securities in emerging markets may be subject to greater price fluctuations than securities in more developed markets. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. In addition, information about such companies may be less available and reliable. Emerging markets usually are subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than are more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably, and the ability to bring and enforce actions, or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent and subject to sudden change. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. In addition, lack of relevant data and reliable public information, including financial information, about securities in emerging markets may contribute to incorrect weightings and data and computational errors when a Fund’s index provider selects securities for inclusion in the Fund’s Underlying Index or rebalances the Underlying Index.
Equity Risk. Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that each Fund holds. In addition, equity risk includes the risk that investor sentiment toward one or more industries will become negative, resulting in those investors exiting their investments in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a
company’s common stock may fall solely because of factors, such as an increase in production costs that negatively impact other companies in the same region, industry or sector of the market. A company’s common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company’s products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.
Foreign Investment Risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping standards, comparable to those applicable to domestic issuers. Foreign securities are also subject to the risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory taxes, currency blockage and/or transfer restrictions and higher transactional costs. To the extent a Fund invests in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns. From time to time, certain companies in which the Funds invest may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. Government and the United Nations and/or in countries the U.S. Government identified as state sponsors of terrorism. One or more of these companies may be subject to constraints under U.S. law or regulations that could negatively affect the company’s performance. Additionally, one or more of these companies could suffer damage to its reputation if the market identifies it as a company that invests or deals with countries that the U.S. Government identifies as state sponsors of terrorism or subjects to sanctions.
Index Risk. Unlike many investment companies that are "actively managed", each Fund is a "passive" investor and therefore does not utilize an investing strategy that seeks returns in excess of its respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. If a specific security is removed from an Underlying Index, its respective Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally, each Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to each Fund’s rebalance schedule. Further, unlike with an actively managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and economic conditions, a Fund’s performance could be lower than other types of funds with investment advisers that actively manage their portfolio assets to take advantage of market opportunities or defend against market events.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or industry group. To the extent that each Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the corresponding Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, each Fund may face more risks than if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which each Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
Market Risk. Securities in each Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in an Underlying Index. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises or other events could result in increased premiums or discounts to each Fund’s NAV.
Micro-Capitalization Company Risk. Investments in the securities of micro-capitalization companies involve substantially greater risks of loss and price fluctuations than other securities with larger capitalizations. Micro-capitalization companies carry additional risks because their earnings and revenues tend to be less predictable (and some companies may experience significant losses), their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. Micro-capitalization companies may be newly formed or in the early stages of development, with limited product lines, markets or financial resources, and they may lack management depth or may be overly reliant on specific key individuals. In addition, less public information may be available about these companies. The shares of micro-capitalization companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the future ability to sell these securities.
Non-Correlation Risk. Each Fund’s return may not match the return of its corresponding Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying
and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its corresponding Underlying Index. Additionally, a Fund’s use of a representative sampling methodology may cause the Fund not to be as well-correlated with the return of its corresponding Underlying Index as would be the case if the Fund purchased all of the securities in its corresponding Underlying Index in the proportions represented in the Underlying Index. In addition, the performance of each Fund and its corresponding Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its corresponding Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because Alerian Galaxy Crypto Economy ETF is non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.
Portfolio Turnover Risk. Certain Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gains distributions to a Fund’s shareholders, a Fund will seek to utilize the in-kind creation and redemption mechanism to minimize the realization of capital gains to the extent possible.
Sampling Risk. A Fund’s use of a representative sampling methodology may result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development with respect to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Subsidiary Investment Risk. By investing in its Subsidiary, each Fund is indirectly exposed to the risks associated with its respective Subsidiary’s investments. Each Subsidiary is not registered under the 1940 Act; therefore each Fund will not receive all of the protections offered to investors in registered investment companies. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of a Fund and/or its Subsidiary to operate as intended, which may negatively affect the Fund and its shareholders.
Valuation Risk. Financial information related to securities of non-U.S. issuers may be less reliable than information related to securities of U.S. issuers, which may make it difficult to obtain a current price for a non-U.S. security held by a Fund. In certain circumstances, market quotations may not be readily available for some Fund securities, and those securities may be fair valued. The value established for a security through fair valuation may be different from what would be produced if the security had been valued using market quotations. Fund securities that are valued using techniques other than market quotations, including “fair valued” securities, may be subject to greater fluctuations in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that a Fund could sell a portfolio security for the value established for it at any time, and it is possible that a Fund would incur a loss because a security is sold at a discount to its established value.
NOTE 3—Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.
Pursuant to the Investment Advisory Agreement, each Fund accrues daily and pays monthly to the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:
| Unitary Management Fees (as a % of average daily net assets) |
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | |
Alerian Galaxy Crypto Economy ETF | |
Through at least August 31, 2026, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. This waiver does not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date.
For the fiscal year ended October 31, 2024, the Adviser waived fees for each Fund in the following amounts:
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | |
Alerian Galaxy Crypto Economy ETF | |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement on behalf of each Fund with VettaFi, LLC (the “Licensor”).
Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.
The Trust has entered into service agreements whereby BNYM, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
For the fiscal year ended October 31, 2024, the Funds incurred brokerage commissions with Invesco Capital Markets, Inc. ("ICMI"), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | |
Alerian Galaxy Crypto Economy ETF | |
Portfolio transactions with ICMI that have not settled at period-end, if any, are shown in the Consolidated Statements of Assets and Liabilities under the receivable caption Investments sold - affiliated broker and/or payable caption Investments purchased - affiliated broker.
NOTE 4—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent
uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
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Alerian Galaxy Crypto Economy ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
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NOTE 5—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023:
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | |
Alerian Galaxy Crypto Economy ETF | | |
| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Fiscal Year-End:
| Undistributed Ordinary Income | Net Unrealized Appreciation- Investments | Net Unrealized (Depreciation)- Foreign Currencies | Capital Loss Carryforwards | Shares of Beneficial Interest | |
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | | | | |
Alerian Galaxy Crypto Economy ETF | | | | | | |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Funds have capital loss carryforwards as of October 31, 2024, as follows:
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | |
Alerian Galaxy Crypto Economy ETF | | | |
NOTE 6—Investment Transactions
For the fiscal year ended October 31, 2024, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | |
Alerian Galaxy Crypto Economy ETF | | |
For the fiscal year ended October 31, 2024, in-kind transactions associated with creations and redemptions were as follows:
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Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | |
Alerian Galaxy Crypto Economy ETF | | |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation | |
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | | |
Alerian Galaxy Crypto Economy ETF | | | | |
NOTE 7—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of redemptions in-kind, passive foreign investment companies, income from the Subsidiary and elimination entry, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended October 31, 2024, the reclassifications were as follows:
| Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest |
Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | |
Alerian Galaxy Crypto Economy ETF | | | |
NOTE 8—Trustees’ and Officer’s Fees
The Adviser, as a result of each Fund’s unitary management fee, pays remuneration to the Independent Trustees and an Officer of the Trust on behalf of the Funds. Interested Trustees do not receive any Trustees’ fees.
The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to a Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Shares are issued and redeemed by each Fund only in Creation Units as discussed in Note 1. Only APs are permitted to purchase or redeem Creation Units from the Funds.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an AP, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the AP to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the AP’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Consolidated Statements of Changes in Net Assets.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Exchange-Traded Fund Trust II and Shareholders of Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF and Invesco Alerian Galaxy Crypto Economy ETF
Opinions on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF and Invesco Alerian Galaxy Crypto Economy ETF and each of their subsidiaries (two of the funds constituting Invesco Exchange-Traded Fund Trust II, hereafter collectively referred to as the “Funds”) as of October 31, 2024, the related consolidated statements of operations for the year ended October 31, 2024, the consolidated statements of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes and the consolidated financial highlights for each of the three years in the period ended October 31, 2024 and for the period October 5, 2021 (commencement of investment operations) through October 31, 2021 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2024, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2024 and each of the financial highlights for each of the three years in the period ended October 31, 2024 and for the period October 5, 2021 (commencement of investment operations) through October 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
These consolidated financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
December 23, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| | | Corporate Dividends Received Deduction* | | |
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF | | | | | |
Invesco Alerian Galaxy Crypto Economy ETF | | | | | |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
©2024 Invesco Capital Management LLC
3500 Lacey Road, Suite 700
Downers Grove, IL 60515
P-AG-NCSR
invesco.com/ETFs
Invesco Annual Financial Statements and Other Information | Invesco 0-5 Yr US TIPS ETF |
| Invesco Emerging Markets Sovereign Debt ETF |
| Invesco Global ex-US High Yield Corporate Bond ETF |
| Invesco International Corporate Bond ETF |
Invesco 0-5 Yr US TIPS ETF (PBTP)
October 31, 2024
| | |
U.S. Treasury Securities-99.82% |
U.S. Treasury Inflation — Indexed Bonds-19.90%(a) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
U.S. Treasury Inflation — Indexed Notes-79.92%(a) |
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| | |
U.S. Treasury Inflation — Indexed Notes-(continued) |
| | | |
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| | | |
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| | | |
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| | | |
| | | |
| | | |
Total U.S. Treasury Securities (Cost $56,148,105) | |
| | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(b)(c) (Cost $158,159) | | | |
TOTAL INVESTMENTS IN SECURITIES-100.11% (Cost $56,306,264) | |
OTHER ASSETS LESS LIABILITIES-(0.11)% | |
| |
Notes to Schedule of Investments: |
| Principal amount of security and interest payments are adjusted for inflation. See Note 2J. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Emerging Markets Sovereign Debt ETF (PCY)
October 31, 2024
| | |
U.S. Dollar Denominated Bonds & Notes-98.52% |
|
Angolan Government International Bond | | | |
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|
Bahrain Government International Bond | | | |
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|
Brazilian Government International Bond | | | |
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|
Chile Government International Bond | | | |
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|
China Government International Bond | | | |
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|
Colombia Government International Bond | | | |
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|
Costa Rica Government International Bond | | | |
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|
Dominican Republic International Bond | | | |
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| | | |
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|
Egypt Government International Bond | | | |
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|
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|
El Salvador Government International Bond | | | |
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|
Guatemala Government Bond | | | |
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|
Hungary Government International Bond | | | |
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|
Indonesia Government International Bond | | | |
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|
Jordan Government International Bond | | | |
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|
Kazakhstan Government International Bond | | | |
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| | | |
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|
Republic of Kenya Government International Bond | | | |
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| | | |
|
Mexico Government International Bond | | | |
| | | |
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| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Emerging Markets Sovereign Debt ETF (PCY)—(continued)
October 31, 2024
| | |
|
Morocco Government International Bond | | | |
| | | |
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| | | |
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|
Nigeria Government International Bond | | | |
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|
Oman Government International Bond | | | |
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|
Pakistan Government International Bond | | | |
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|
Panama Government International Bond | | | |
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|
Peruvian Government International Bond | | | |
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|
Philippine Government International Bond | | | |
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|
Qatar Government International Bond | | | |
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|
Romanian Government International Bond | | | |
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|
Saudi Government International Bond | | | |
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|
Republic of South Africa Government International Bond | | | |
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|
Turkey Government International Bond | | | |
| | | |
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Turkiye Government International Bond, 5.75%, 05/11/2047 | | | |
| | | |
United Arab Emirates-3.24% |
Finance Department Government of Sharjah | | | |
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|
Republic of Uzbekistan International Bond | | | |
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Total U.S. Dollar Denominated Bonds & Notes (Cost $1,493,068,615) | |
| | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(c)(d) (Cost $1,189,395) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-98.61% (Cost $1,494,258,010) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(c)(d)(e) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Emerging Markets Sovereign Debt ETF (PCY)—(continued)
October 31, 2024
| | |
Money Market Funds-(continued) |
Invesco Private Prime Fund, 4.99%(c)(d)(e) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $48,431,050) | |
TOTAL INVESTMENTS IN SECURITIES-102.19% (Cost $1,542,689,060) | |
OTHER ASSETS LESS LIABILITIES-(2.19)% | |
| |
Notes to Schedule of Investments: |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $898,088,946, which represented 66.29% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| 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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)
October 31, 2024
| | |
U.S. Dollar Denominated Bonds & Notes-98.08% |
|
MSU Energy S.A./UGEN S.A./UENSA S.A., 6.88%, 02/01/2025(a) | | | |
Provincia de Cordoba, 6.88%, 12/10/2025(a) | | | |
Telecom Argentina S.A., 9.50%, 07/18/2031(a) | | | |
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FMG Resources (August 2006) Pty. Ltd. | | | |
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Infrabuild Australia Pty Ltd., 14.50%, 11/15/2028(a) | | | |
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Benteler International AG, 10.50%, 05/15/2028(a) | | | |
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State Oil Co. of the Azerbaijan Republic (The), 6.95%, 03/18/2030(a) | | | |
|
Bank of Bahrain and Kuwait B.S.C., 6.88%, 06/06/2029(a) | | | |
GFH Sukuk Ltd., 7.50%, 01/28/2025(a) | | | |
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|
Telenet Finance Luxembourg Notes S.a.r.l., 5.50%, 03/01/2028(a) | | | |
|
RLGH Finance Bermuda Ltd., 8.25%, 07/17/2031(a) | | | |
|
3R Lux S.a.r.l., 9.75%, 02/05/2031(a) | | | |
Acu Petroleo (Luxembourg) S.a.r.l., 7.50%, 01/13/2032(a) | | | |
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|
Amaggi (Luxembourg) International S.a.r.l., 5.25%, 01/28/2028(a) | | | |
Ambipar Lux S.a.r.l., 9.88%, 02/06/2031(a) | | | |
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B3 S.A. - Brasil, Bolsa, Balcao, 4.13%, 09/20/2031(a) | | | |
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Banco Votorantim S.A., 4.38%, 07/29/2025(a) | | | |
Braskem America Finance Co., 7.13%, 07/22/2041(a) | | | |
Braskem Netherlands Finance B.V. | | | |
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Cemig Geracao e Transmissao S.A., 9.25%, 12/05/2024(a) | | | |
Centrais Eletricas Brasileiras S.A. | | | |
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CSN Inova Ventures, 6.75%, 01/28/2028(a) | | | |
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FS (Luxembourg) S.a.r.l., 8.88%, 02/12/2031(a) | | | |
Itau Unibanco Holding S.A., 3.25%, 01/24/2025(a) | | | |
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
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|
MARB BondCo PLC, 3.95%, 01/29/2031(a) | | | |
MC Brazil Downstream Trading S.a.r.l., 7.25%, 06/30/2031(a) | | | |
MercadoLibre, Inc., 3.13%, 01/14/2031 | | | |
Minerva (Luxembourg) S.A. | | | |
| | | |
| | | |
Movida Europe S.A., 7.85%, 04/11/2029(a) | | | |
MV24 Capital B.V., 6.75%, 06/01/2034(a) | | | |
NBM US Holdings, Inc., 7.00%, 05/14/2026(a) | | | |
Petrobras Global Finance B.V. | | | |
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Petrorio Luxembourg Trading S.a.r.l., 6.13%, 06/09/2026(a) | | | |
Rede D’or Finance S.a.r.l. | | | |
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Samarco Mineracao S.A., 9.00% PIK Rate, 0.50% Cash Rate, 06/30/2031(a)(b)(c) | | | |
Simpar Europe S.A., 5.20%, 01/26/2031(a) | | | |
Trident Energy Finance PLC, 12.50%, 11/30/2029(a) | | | |
XP, Inc., 6.75%, 07/02/2029(a) | | | |
Yinson Boronia Production B.V., 8.95%, 07/31/2042(a) | | | |
| | | |
|
Endeavour Mining PLC, 5.00%, 10/14/2026(a) | | | |
|
1011778 BC ULC/New Red Finance, Inc. | | | |
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Air Canada, 3.88%, 08/15/2026(a) | | | |
Algonquin Power & Utilities Corp., 4.75%, 01/18/2082(d) | | | |
Baffinland Iron Mines Corp./Baffinland Iron Mines L.P., 8.75%, 07/15/2026(a) | | | |
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Brookfield Residential Properties, Inc./Brookfield Residential U.S. LLC | | | |
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| | | |
Dye & Durham Ltd., 8.63%, 04/15/2029(a) | | | |
Emera, Inc., Series 16-A, 6.75%, 06/15/2076(b)(d) | | | |
Enerflex Ltd., 9.00%, 10/15/2027(a) | | | |
Garda World Security Corp. | | | |
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| | | |
Husky Injection Molding Systems Ltd./Titan Co-Borrower LLC, 9.00%, 02/15/2029(a) | | | |
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC, 6.00%, 09/15/2028(a) | | | |
Jones Deslauriers Insurance Management, Inc. | | | |
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MEG Energy Corp., 5.88%, 02/01/2029(a) | | | |
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| | | |
Northriver Midstream Finance L.P., 6.75%, 07/15/2032(a) | | | |
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
Ritchie Bros. Holdings, Inc. | | | |
| | | |
| | | |
Rogers Communications, Inc., 5.25%, 03/15/2082(a)(d) | | | |
South Bow Canadian Infrastructure Holdings Ltd., 7.50%, 03/01/2055(a)(d) | | | |
Strathcona Resources Ltd., 6.88%, 08/01/2026(a) | | | |
Superior Plus L.P./Superior General Partner, Inc., 4.50%, 03/15/2029(a) | | | |
Telesat Canada/Telesat LLC, 5.63%, 12/06/2026(a) | | | |
| | | |
|
Global Aircraft Leasing Co. Ltd., 8.75%, 09/01/2027(a) | | | |
|
AES Andes S.A., 8.15%, 06/10/2055(a)(d) | | | |
Agrosuper S.A., 4.60%, 01/20/2032(a) | | | |
Falabella S.A., 3.38%, 01/15/2032(a)(b) | | | |
LATAM Airlines Group S.A., 13.38%, 10/15/2029(a) | | | |
Telefonica Moviles Chile S.A., 3.54%, 11/18/2031(a) | | | |
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|
Bank of Communications Co. Ltd., 3.80%(a)(d)(e) | | | |
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Huarong Finance 2017 Co. Ltd. | | | |
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Huarong Finance 2019 Co. Ltd., 4.50%, 05/29/2029(a) | | | |
Industrial and Commercial Bank of China Ltd., 3.20%(a)(b)(d)(e) | | | |
Longfor Group Holdings Ltd., 4.50%, 01/16/2028(a) | | | |
Vanke Real Estate (Hong Kong) Co. Ltd., 3.98%, 11/09/2027(a) | | | |
West China Cement Ltd., 4.95%, 07/08/2026(a) | | | |
Yankuang Group (Cayman) Ltd., 2.90%, 11/30/2024(a) | | | |
Yanlord Land (HK) Co. Ltd., 5.13%, 05/20/2026(a) | | | |
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|
AI Candelaria (Spain) S.A., 5.75%, 06/15/2033(a) | | | |
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Banco de Bogota S.A., 6.25%, 05/12/2026(a) | | | |
Canacol Energy Ltd., 5.75%, 11/24/2028(a) | | | |
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Empresas Publicas de Medellin E.S.P. | | | |
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EnfraGen Energia Sur S.A./EnfraGen Spain S.A./Prime Energia S.p.A., 5.38%, 12/30/2030(a) | | | |
GeoPark Ltd., 5.50%, 01/17/2027(a) | | | |
Gran Tierra Energy, Inc., 9.50%, 10/15/2029(a) | | | |
Grupo Aval Ltd., 4.38%, 02/04/2030(a)(b) | | | |
Grupo de Inversiones Suramericana S.A., 5.50%, 04/29/2026(a) | | | |
SierraCol Energy Andina LLC, 6.00%, 06/15/2028(a) | | | |
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|
Instituto Costarricense de Electricidad, 6.38%, 05/15/2043(a) | | | |
|
Allwyn Entertainment Financing (UK) PLC, 7.88%, 04/30/2029(a)(b) | | | |
|
Aeropuertos Dominicanos Siglo XXI S.A., 7.00%, 06/30/2034(a) | | | |
|
Amer Sports Co., 6.75%, 02/16/2031(a) | | | |
|
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Calderys Financing LLC, 11.25%, 06/01/2028(a) | | | |
Electricite de France S.A., 9.13%(a)(d)(e) | | | |
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Vallourec SACA, 7.50%, 04/15/2032(a) | | | |
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|
Georgian Railway JSC, 4.00%, 06/17/2028(a) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
Cheplapharm Arzneimittel GmbH, 5.50%, 01/15/2028(a) | | | |
Mercer International, Inc., 5.13%, 02/01/2029(b) | | | |
TK Elevator U.S. Newco, Inc., 5.25%, 07/15/2027(a) | | | |
ZF North America Capital, Inc. | | | |
| | | |
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|
Tullow Oil PLC, 10.25%, 05/15/2026(a) | | | |
|
Central American Bottling Corp./CBC Bottling Holdco S.L./Beliv Holdco S.L., 5.25%, 04/27/2029(a) | | | |
CT Trust, 5.13%, 02/03/2032(a) | | | |
Investment Energy Resources Ltd., 6.25%, 04/26/2029(a) | | | |
| | | |
|
Bank of Communications (Hong Kong) Ltd., 3.73%(a)(d)(e) | | | |
Bank of East Asia Ltd. (The), 5.83%(a)(d)(e) | | | |
CAS Capital No. 1 Ltd., 4.00%(a)(d)(e) | | | |
China CITIC Bank International Ltd. | | | |
| | | |
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Melco Resorts Finance Ltd. | | | |
| | | |
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Nanyang Commercial Bank Ltd., 6.50%(a)(d)(e) | | | |
Seaspan Corp., 5.50%, 08/01/2029(a) | | | |
| | | |
|
OTP Bank Nyrt., 8.75%, 05/15/2033(a)(d) | | | |
|
CA Magnum Holdings, 5.38%, 10/31/2026(a) | | | |
Continuum Green Energy India Pvt./Co- Issuers, 7.50%, 06/26/2033(a) | | | |
Delhi International Airport Ltd. | | | |
| | | |
| | | |
Greenko Dutch B.V., 3.85%, 03/29/2026(a) | | | |
Greenko Power II Ltd., 4.30%, 12/13/2028(a)(b) | | | |
Greenko Solar Mauritius Ltd. | | | |
| | | |
| | | |
| | |
|
Greenko Wind Projects Mauritius Ltd., 5.50%, 04/06/2025(a) | | | |
IRB Infrastructure Developers Ltd., 7.11%, 03/11/2032(a) | | | |
JSW Hydro Energy Ltd., 4.13%, 05/18/2031(a) | | | |
| | | |
| | | |
| | | |
Muthoot Finance Ltd., 7.13%, 02/14/2028(a) | | | |
Network i2i Ltd., 5.65%(a)(d)(e) | | | |
Periama Holdings LLC, 5.95%, 04/19/2026(a) | | | |
ReNew Wind Energy AP2/ReNew Power Pvt Ltd. other 9 Subsidiaries, 4.50%, 07/14/2028(a) | | | |
Shriram Finance Ltd., 6.63%, 04/22/2027(a) | | | |
UPL Corp. Ltd., 4.63%, 06/16/2030(a) | | | |
Vedanta Resources Finance II PLC | | | |
| | | |
| | | |
Vedanta Resources Ltd., 13.88%, 12/09/2028(a) | | | |
| | | |
|
Medco Maple Tree Pte. Ltd., 8.96%, 04/27/2029(a) | | | |
PT Cikarang Listrindo Tbk, 4.95%, 09/14/2026(a) | | | |
| | | |
|
Energian Israel Finance Ltd. | | | |
| | | |
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| | | |
Teva Pharmaceutical Finance Co. LLC, 6.15%, 02/01/2036(b) | | | |
Teva Pharmaceutical Finance Netherlands III B.V. | | | |
| | | |
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|
F-Brasile S.p.A./F-Brasile U.S. LLC, 7.38%, 08/15/2026(a) | | | |
| | | |
| | | |
4.95%, 06/01/2042(a)(b)(d) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
Kedrion S.p.A., 6.50%, 09/01/2029(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Telecom Italia Capital S.A., 7.20%, 07/18/2036 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./Difl US, 9.00% PIK Rate, 1.50% Cash Rate, 05/25/2027(c) | | | |
|
| | | |
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|
Aston Martin Capital Holdings Ltd., 10.00%, 03/31/2029(a) | | | |
|
Kuwait Projects Co. S.P.C Ltd. | | | |
| | | |
| | | |
| | | |
|
Albion Financing 1 S.a.r.l./Aggreko Holdings, Inc., 6.13%, 10/15/2026(a) | | | |
| | | |
| | | |
| | | |
INEOS Finance PLC, 7.50%, 04/15/2029(a) | | | |
ION Trading Technologies S.a.r.l., 9.50%, 05/30/2029(a) | | | |
| | | |
|
Champion Path Holdings Ltd. | | | |
| | | |
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|
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|
Alsea S.A.B. de C.V., 7.75%, 12/14/2026(a) | | | |
Borr IHC Ltd./Borr Finance LLC | | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
Grupo Aeromexico S.A.B. de C.V., 8.50%, 03/17/2027(a)(b) | | | |
Nemak S.A.B. de C.V., 3.63%, 06/28/2031(a) | | | |
| | | |
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| | | |
| | | |
Total Play Telecomunicaciones S.A. de C.V., 6.38%, 09/20/2028(a) | | | |
| | | |
|
Aragvi Finance International DAC, 8.45%, 04/29/2026(a) | | | |
|
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
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| | | |
|
OCI N.V., 6.70%, 03/16/2033(a) | | | |
Sunrise FinCo I B.V., 4.88%, 07/15/2031(a) | | | |
Trivium Packaging Finance B.V. | | | |
| | | |
| | | |
VEON Holdings B.V., 3.38%, 11/25/2027(a) | | | |
VZ Secured Financing B.V., 5.00%, 01/15/2032(a) | | | |
Ziggo B.V., 4.88%, 01/15/2030(a) | | | |
| | | |
| | | |
| | | |
| | | |
|
Access Bank PLC, 6.13%, 09/21/2026(a) | | | |
| | | |
| | | |
| | | |
IHS Netherlands Holdco B.V., 8.00%, 09/18/2027(a) | | | |
Seplat Energy PLC, 7.75%, 04/01/2026(a) | | | |
| | | |
|
Seadrill Finance Ltd., 8.38%, 08/01/2030(a) | | | |
|
Bank muscat SAOG, 4.75%, 03/17/2026(a) | | | |
Lamar Funding Ltd., 3.96%, 05/07/2025(a) | | | |
| | | |
| | | |
| | | |
OmGrid Funding Ltd., 5.20%, 05/16/2027(a) | | | |
OQ SAOC, 5.13%, 05/06/2028(a) | | | |
Oryx Funding Ltd., 5.80%, 02/03/2031(a) | | | |
Oztel Holdings SPC Ltd., 6.63%, 04/24/2028(a) | | | |
| | | |
|
Pakistan Water & Power Development Authority, 7.50%, 06/04/2031(a) | | | |
|
AES Panama Generation Holdings S.R.L., 4.38%, 05/31/2030(a) | | | |
C&W Senior Finance Ltd., 6.88%, 09/15/2027(a) | | | |
Empresa de Transmision Electrica S.A., 5.13%, 05/02/2049(a) | | | |
Telecomunicaciones Digitales S.A., 4.50%, 01/30/2030(a) | | | |
| | | |
| | |
|
Banco de Credito del Peru S.A. | | | |
| | | |
3.25%, 09/30/2031(a)(b)(d) | | | |
| | | |
Cia de Minas Buenaventura S.A.A., 5.50%, 07/23/2026(a) | | | |
Peru LNG S.r.l., 5.38%, 03/22/2030(a) | | | |
| | | |
| | | |
| | | |
| | | |
|
Canpack S.A./Canpack US LLC, 3.88%, 11/15/2029(a) | | | |
|
LCPR Senior Secured Financing DAC | | | |
| | | |
| | | |
| | | |
|
O1 Properties Finance PLC, 0.50%, 09/27/2028(a)(f) | | | |
|
Arabian Centres Sukuk II Ltd., 5.63%, 10/07/2026(a) | | | |
Arabian Centres Sukuk III Ltd., 9.50%, 03/06/2029(a) | | | |
Dar Al-Arkan Sukuk Co. Ltd. | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
Bidvest Group UK PLC (The), 3.63%, 09/23/2026(a) | | | |
| | | |
| | | |
| | | |
Liquid Telecommunications Financing PLC, 5.50%, 09/04/2026(a) | | | |
MTN (Mauritius) Investments Ltd., 6.50%, 10/13/2026(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
Transnet SOC Ltd., 8.25%, 02/06/2028(a) | | | |
| | | |
|
Codere Finance 2 (Luxembourg) S.A., 11.63% PIK Rate, 2.00% Cash Rate, 11/30/2027(a)(c) | | | |
Grifols S.A., 4.75%, 10/15/2028(a) | | | |
| | | |
|
Stena International S.A., 7.25%, 01/15/2031(a) | | | |
|
Consolidated Energy Finance S.A. | | | |
| | | |
| | | |
Oriflame Investment Holding PLC, 5.13%, 05/04/2026(a) | | | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc. | | | |
| | | |
| | | |
| | | |
|
Bangkok Bank PCL, 3.73%, 09/25/2034(a)(d) | | | |
Kasikornbank PCL, 3.34%, 10/02/2031(a)(d) | | | |
| | | |
|
Heritage Petroleum Co. Ltd., 9.00%, 08/12/2029(a) | | | |
Trinidad Generation Unlimited, 5.25%, 11/04/2027(a) | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Anadolu Efes Biracilik ve Malt Sanayii A.S., 3.38%, 06/29/2028(a) | | | |
Aydem Yenilenebilir Enerji A.S., 7.75%, 02/02/2027(a) | | | |
Eldorado Gold Corp., 6.25%, 09/01/2029(a) | | | |
Eregli Demir ve Celik Fabrikalari T.A.S., 8.38%, 07/23/2029(a) | | | |
Ford Otomotiv Sanayi A.S., 7.13%, 04/25/2029(a) | | | |
KOC Holding A.S., 6.50%, 03/11/2025(a) | | | |
Limak Cimento Sanayi ve Ticaret A.S., 9.75%, 07/25/2029(a) | | | |
Mersin Uluslararasi Liman Isletmeciligi A.S., 8.25%, 11/15/2028(a) | | | |
| | |
|
Pegasus Hava Tasimaciligi A.S., 8.00%, 09/11/2031(a) | | | |
QNB Bank A.S., 7.25%, 05/21/2029(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Turk Telekomunikasyon A.S., 7.38%, 05/20/2029(a) | | | |
Turkiye Garanti Bankasi A.S., 8.38%, 02/28/2034(a)(d) | | | |
Turkiye Ihracat Kredi Bankasi A.S. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Turkiye Vakiflar Bankasi T.A.O. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ulker Biskuvi Sanayi A.S., 7.88%, 07/08/2031(a) | | | |
WE Soda Investments Holding PLC | | | |
| | | |
| | | |
Yapi ve Kredi Bankasi A.S. | | | |
| | | |
| | | |
| | | |
Ziraat Katilim Varlik Kiralama A.S., 9.38%, 11/12/2026(a) | | | |
| | | |
|
Ukraine Railways Via Rail Capital Markets PLC, 8.25%, 07/09/2026(a)(f) | | | |
United Arab Emirates-1.61% |
Alpha Star Holding VIII Ltd., 8.38%, 04/12/2027(a) | | | |
Arada Sukuk 2 Ltd., 8.00%, 06/24/2029(a) | | | |
Binghatti Sukuk SPC Ltd., 9.63%, 02/28/2027(a) | | | |
DIB Tier 1 Sukuk (3) Ltd., 6.25%(a)(d)(e) | | | |
DP World Salaam, 6.00%(a)(d)(e) | | | |
Emirates NBD Bank PJSC, 6.13%(a)(d)(e) | | | |
MAF Global Securities Ltd., 7.88%(a)(d)(e) | | | |
Shelf Drilling Holdings Ltd., 9.63%, 04/15/2029(a) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
|
180 Medical, Inc., 3.88%, 10/15/2029(a) | | | |
Ardonagh Finco Ltd., 7.75%, 02/15/2031(a) | | | |
Ardonagh Group Finance Ltd., 8.88%, 02/15/2032(a) | | | |
| | | |
| | | |
| | | |
British Telecommunications PLC, 4.25%, 11/23/2081(a)(d) | | | |
eG Global Finance PLC, 12.00%, 11/30/2028(a) | | | |
Global Auto Holdings Ltd./AAG FH UK Ltd. | | | |
| | | |
| | | |
Howden UK Refinance PLC/Howden UK Refinance 2 PLC/Howden US Refinance LLC | | | |
| | | |
| | | |
Jaguar Land Rover Automotive PLC | | | |
| | | |
| | | |
| | | |
Mclaren Finance PLC, 7.50%, 08/01/2026(a) | | | |
Standard Chartered PLC, 7.01%(a)(d)(e) | | | |
Virgin Media Finance PLC, 5.00%, 07/15/2030(a) | | | |
Virgin Media Secured Finance PLC | | | |
| | | |
| | | |
Virgin Media Vendor Financing Notes IV DAC, 5.00%, 07/15/2028(a) | | | |
VMED 02 UK Financing I PLC, 7.75%, 04/15/2032(a) | | | |
VMED O2 UK Financing I PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Zegona Finance PLC, 8.63%, 07/15/2029(a) | | | |
| | | |
|
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 4.13%, 08/15/2026(a) | | | |
Bausch & Lomb Corp., 8.38%, 10/01/2028(a) | | | |
CITGO Petroleum Corp., 7.00%, 06/15/2025(a) | | | |
CNG Holdings, Inc., 14.50%, 06/30/2026(a) | | | |
Constellium SE, 3.75%, 04/15/2029(a) | | | |
Dresdner Funding Trust I, 8.15%, 06/30/2031(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
United States-(continued) |
| | | |
| | | |
| | | |
OPENLANE, Inc., 5.13%, 06/01/2025(a) | | | |
Playtika Holding Corp., 4.25%, 03/15/2029(a) | | | |
Wesco Aircraft Holdings, Inc., 8.50%, 11/15/2024(a)(f) | | | |
WeWork Cos. US LLC, 7.88%, 05/01/2025(a)(f)(g) | | | |
| | | |
|
Uzbekneftegaz JSC, 4.75%, 11/16/2028(a) | | | |
|
Mong Duong Finance Holdings B.V., 5.13%, 05/07/2029(a) | | | |
|
First Quantum Minerals Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Total U.S. Dollar Denominated Bonds & Notes (Cost $133,802,254) | |
| | |
Common Stocks & Other Equity Interests-0.23% |
|
Hornbeck Offshore Services, Inc.(h)(i) | | | |
Hornbeck Offshore Services, Inc., Wts., TBA(h)(i) | | | |
Hornbeck Offshore Services, Inc., Wts., TBA(h)(i) | | | |
Premier Brands Group Holdings Co.(h)(j) | | | |
TRU Taj LLC/TRU Taj Finance, Inc.(h) | | | |
Total Common Stocks & Other Equity Interests (Cost $178,938) | |
|
|
Guitar Center Holdings, Inc., Series A, Pfd., (Cost $220,500) | | | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(m)(n) (Cost $2,305,374) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.01% (Cost $136,507,066) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(m)(n)(o) | | | |
Invesco Private Prime Fund, 4.99%(m)(n)(o) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $12,144,494) | |
TOTAL INVESTMENTS IN SECURITIES-108.65% (Cost $148,651,560) | |
OTHER ASSETS LESS LIABILITIES-(8.65)% | |
| |
Investment Abbreviations: |
DAC-Designated Activity Co. |
|
|
|
|
Notes to Schedule of Investments: |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $122,397,127, which represented 87.10% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities. |
| Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| Perpetual bond with no specified maturity date. |
| Defaulted security. Currently, the issuer is in default with respect to principal and/or interest payments. The aggregate value of these securities at October 31, 2024 was $255,663, which represented less than 1% of the Fund’s Net Assets. |
| The borrower has filed for protection in federal bankruptcy court. |
| Non-income producing security. |
| Acquired as part of the Hornbeck Offshore Services, Inc. reorganization. |
| Acquired as part of the Nine West Holding, Inc. reorganization. |
| Acquired as part of the Guitar Center, Inc. reorganization. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)—(continued)
October 31, 2024
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| 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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)
October 31, 2024
| | |
Non-U.S. Dollar Denominated Bonds & Notes-98.48%(a) |
|
APA Infrastructure Ltd., 3.50%, 03/22/2030(b) | | | |
Australia & New Zealand Banking Group Ltd., 0.75%, 09/29/2026(b) | | | |
Australia and New Zealand Banking Group Ltd. | | | |
| | | |
| | | |
BHP Billiton Finance Ltd., Series 12, 4.30%, 09/25/2042 | | | |
Commonwealth Bank of Australia, 4.90%, 08/17/2028 | | | |
Glencore Finance (Europe) Ltd., 3.13%, 03/26/2026(b) | | | |
National Australia Bank Ltd. | | | |
| | | |
| | | |
| | | |
NBN Co. Ltd., 1.00%, 12/03/2025(b) | | | |
Sydney Airport Finance Co. Pty. Ltd., 4.38%, 05/03/2033(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Belfius Bank S.A., 4.13%, 09/12/2029 | | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bank of Nova Scotia (The) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Brookfield Finance II, Inc., 5.43%, 12/14/2032(b) | | | |
Canadian Imperial Bank of Commerce | | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
Cenovus Energy, Inc., 3.50%, 02/07/2028 | | | |
Coastal Gaslink Pipeline L.P. | | | |
Series J, 5.86%, 03/30/2049 | | | |
Series K, 5.86%, 06/30/2049 | | | |
Federation des caisses Desjardins du Quebec | | | |
| | | |
| | | |
| | | |
| | | |
National Bank of Canada, 5.22%, 06/14/2028 | | | |
Ontario Teachers’ Finance Trust | | | |
| | | |
| | | |
Original Wempi, Inc., 7.79%, 10/04/2027 | | | |
Rogers Communications, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series CY, 3.30%, 05/02/2029 | | | |
Toronto-Dominion Bank (The) | | | |
| | | |
| | | |
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| | | |
TransCanada PipeLines Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
|
Prosus N.V., 1.29%, 07/13/2029(b) | | | |
|
Novo Nordisk Finance (Netherlands) B.V., 3.38%, 05/21/2034(b) | | | |
| | | |
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|
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| | | |
OP Corporate Bank PLC, 2.88%, 12/15/2025(b) | | | |
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|
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Aeroports de Paris S.A., 2.75%, 04/02/2030(b) | | | |
| | | |
| | | |
| | | |
| | | |
Autoroutes du Sud de la France S.A., 1.38%, 02/21/2031(b) | | | |
| | | |
| | | |
| | | |
Banque Federative du Credit Mutuel S.A. | | | |
| | | |
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| | | |
Capgemini SE, 2.38%, 04/15/2032(b) | | | |
Carrefour S.A., 2.63%, 12/15/2027(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cie Generale des Etablissements Michelin S.C.A., 1.75%, 09/03/2030(b) | | | |
Coentreprise de Transport d’Electricite S.A. | | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
|
Credit Agricole Assurances S.A. | | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
Credit Mutuel Arkea S.A., 3.38%, 09/19/2027(b) | | | |
Dassault Systemes SE, 0.38%, 09/16/2029(b) | | | |
Electricite de France S.A. | | | |
| | | |
| | | |
| | | |
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| | | |
Holding d’Infrastructures de Transport S.A.S.U., 1.48%, 01/18/2031(b) | | | |
| | | |
| | | |
| | | |
| | | |
La Banque Postale S.A., 4.00%, 05/03/2028(b) | | | |
| | |
|
LVMH Moet Hennessy Louis Vuitton SE, 3.50%, 09/07/2033(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pernod Ricard S.A., 1.75%, 04/08/2030(b) | | | |
RTE Reseau de Transport d’Electricite SADIR, 3.75%, 07/04/2035(b) | | | |
| | | |
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TotalEnergies Capital International S.A. | | | |
| | | |
| | | |
Unibail-Rodamco-Westfield SE | | | |
| | | |
| | | |
Vinci S.A., 1.75%, 09/26/2030(b) | | | |
| | | |
|
Allianz Finance II B.V., Series 62, 4.50%, 03/13/2043(b) | | | |
Amprion GmbH, 3.97%, 09/22/2032(b) | | | |
Aroundtown S.A., 0.38%, 04/15/2027(b) | | | |
BASF SE, 1.50%, 03/17/2031(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
Commerzbank AG, 4.00%, 03/23/2026(b) | | | |
Deutsche Bahn Finance GmbH | | | |
| | | |
| | | |
| | | |
Deutsche Bank AG, 1.63%, 01/20/2027(b) | | | |
Deutsche Boerse AG, 3.88%, 09/28/2033(b) | | | |
Deutsche Lufthansa AG, 3.00%, 05/29/2026(b) | | | |
Deutsche Post AG, 3.50%, 03/25/2036(b) | | | |
E.ON International Finance B.V. | | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
Grand City Properties S.A., 0.13%, 01/11/2028(b) | | | |
Landesbank Baden-Wuerttemberg, 0.38%, 02/18/2027(b) | | | |
| | | |
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| | | |
Mercedes-Benz International Finance B.V. | | | |
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Siemens Financieringsmaatschappij N.V. | | | |
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|
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| | | |
Traton Finance Luxembourg S.A., 0.75%, 03/24/2029(b) | | | |
Volkswagen Bank GmbH, 4.25%, 01/07/2026(b) | | | |
Volkswagen Financial Services N.V., 2.13%, 01/18/2028(b) | | | |
Volkswagen Financial Services Overseas AG | | | |
| | | |
| | | |
Volkswagen International Finance N.V. | | | |
| | | |
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| | | |
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| | | |
| | | |
Volkswagen Leasing GmbH, 0.38%, 07/20/2026(b) | | | |
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| | | |
| | | |
| | | |
Wintershall Dea Finance B.V. | | | |
| | | |
| | | |
| | | |
|
Smurfit Kappa Acquisitions ULC, 2.88%, 01/15/2026(b) | | | |
|
Assicurazioni Generali S.p.A., 4.13%, 05/04/2026(b) | | | |
| | | |
| | | |
| | | |
Autostrade per l’Italia S.p.A. | | | |
| | | |
| | | |
Enel Finance International N.V. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Enel S.p.A., 5.75%, 06/22/2037(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
|
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| | | |
Ryanair DAC, 0.88%, 05/25/2026(b) | | | |
Snam S.p.A., 3.88%, 02/19/2034(b) | | | |
| | | |
| | | |
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| | | |
|
East Japan Railway Co., 5.56%, 09/04/2054(b) | | | |
Mizuho Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Series 16, 0.18%, 12/19/2025 | | | |
Series 17, 0.28%, 12/20/2027 | | | |
Series 18, 0.38%, 09/20/2030 | | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
| | | |
| | | |
Takeda Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
|
Logicor Financing S.a.r.l., 1.63%, 07/15/2027(b) | | | |
|
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| | | |
Cooperatieve Rabobank U.A. | | | |
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|
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| | | |
|
Bank of New Zealand, 5.87%, 09/01/2028(b) | | | |
Westpac New Zealand Ltd., 4.34%, 09/24/2029 | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Series 478, 1.50%, 02/19/2026(b) | | | |
Series 479, 1.75%, 02/17/2027(b) | | | |
Series 480, 2.00%, 04/26/2028(b) | | | |
Series 481, 1.75%, 09/06/2029(b) | | | |
Series 482, 1.38%, 08/19/2030(b) | | | |
Series 483, 1.25%, 09/17/2031(b) | | | |
Series 484, 2.13%, 05/18/2032(b) | | | |
Series 486, 3.00%, 08/15/2033(b) | | | |
Series 487, 3.63%, 04/13/2034(b) | | | |
SpareBank 1 SR-Bank ASA, 3.75%, 11/23/2027(b) | | | |
| | | |
|
EDP Finance B.V., 1.88%, 09/21/2029(b) | | | |
|
Abertis Infraestructuras S.A. | | | |
| | | |
| | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
|
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| | | |
Cellnex Telecom S.A., 1.75%, 10/23/2030(b) | | | |
Iberdrola Finanzas S.A., 1.38%, 03/11/2032(b) | | | |
Santander Consumer Finance S.A., 3.75%, 01/17/2029(b) | | | |
Telefonica Emisiones S.A. | | | |
| | | |
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| | | |
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| | | |
|
Skandinaviska Enskilda Banken AB | | | |
| | | |
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| | | |
Series 1056, 2.25%, 06/01/2032(b) | | | |
Series 1058, 2.50%, 05/12/2025(b) | | | |
Series 1059, 1.00%, 11/12/2026(b) | | | |
Series 1060, 0.75%, 05/12/2028(b) | | | |
Series 1061, 0.75%, 11/12/2029(b) | | | |
Vattenfall AB, 6.88%, 04/15/2039(b) | | | |
| | | |
| | |
|
Holcim Finance (Luxembourg) S.A., 0.50%, 09/03/2030(b) | | | |
Lonza Finance International N.V., 3.88%, 04/24/2036(b) | | | |
Richemont International Holding S.A. | | | |
| | | |
| | | |
Sika Capital B.V., 3.75%, 11/03/2026(b) | | | |
| | | |
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| | | |
|
ASML Holding N.V., 3.50%, 12/06/2025(b) | | | |
|
Anglian Water Services Financing PLC | | | |
| | | |
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| | | |
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| | | |
B.A.T. International Finance PLC | | | |
| | | |
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| | | |
British Telecommunications PLC | | | |
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| | | |
| | | |
CCEP Finance (Ireland) DAC, 0.88%, 05/06/2033(b) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
United Kingdom-(continued) |
| | | |
| | | |
| | | |
Clarion Funding PLC, 3.13%, 04/19/2048(b) | | | |
Community Finance Co. 1 PLC, 5.02%, 07/31/2034 | | | |
Connect Plus (M25) Issuer PLC, 2.61%, 03/31/2039(b) | | | |
| | | |
| | | |
| | | |
easyJet FinCo B.V., 1.88%, 03/03/2028(b) | | | |
GlaxoSmithKline Capital PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
High Speed Rail Finance 1 PLC, 4.38%, 11/01/2038(b) | | | |
Housing & Care 21, 3.29%, 11/08/2049(b) | | | |
| | | |
| | | |
| | | |
Imperial Brands Finance Netherlands B.V. | | | |
| | | |
| | | |
Imperial Brands Finance PLC | | | |
| | | |
| | | |
Lloyds Bank Corporate Markets PLC, 2.38%, 04/09/2026(b) | | | |
Lloyds Bank PLC, 6.50%, 09/17/2040(b) | | | |
Lloyds Banking Group PLC, 1.50%, 09/12/2027(b) | | | |
Motability Operations Group PLC | | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
National Grid Electricity Distribution (West Midlands) PLC, 5.75%, 04/16/2032(b) | | | |
National Grid PLC, 4.28%, 01/16/2035(b) | | | |
Nationwide Building Society, 4.50%, 11/01/2026(b) | | | |
| | |
United Kingdom-(continued) |
NatWest Markets PLC, 6.63%, 06/22/2026(b) | | | |
Places For People Treasury PLC | | | |
| | | |
| | | |
Reckitt Benckiser Treasury Services PLC, 1.75%, 05/19/2032(b) | | | |
Rolls-Royce PLC, 5.75%, 10/15/2027(b) | | | |
| | | |
| | | |
| | | |
| | | |
Sanctuary Capital PLC, 2.38%, 04/14/2050(b) | | | |
Santander UK Group Holdings PLC, 3.63%, 01/14/2026(b) | | | |
Scottish Hydro Electric Transmission PLC, 5.50%, 01/15/2044(b) | | | |
Scottish Widows Ltd., 7.00%, 06/16/2043(b) | | | |
Severn Trent Utilities Finance PLC, 3.63%, 01/16/2026(b) | | | |
| | | |
| | | |
| | | |
SW (Finance) I PLC, 7.38%, 12/12/2041(b) | | | |
T.H.F.C. (Funding No.3) PLC, 5.20%, 10/11/2043(b) | | | |
University of Oxford, 2.54%, 12/08/2117(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wellcome Trust Ltd. (The) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Medtronic Global Holdings S.C.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sanofi S.A., Series 20FX, 1.88%, 03/21/2038(b) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
| | |
United States-(continued) |
Shell International Finance B.V. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
Toyota Motor Credit Corp., 3.63%, 07/15/2031(b) | | | |
| | | |
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $131,998,130) | |
| | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(e)(f) (Cost $745,439) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.07% (Cost $132,743,569) | |
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $836,293) | |
TOTAL INVESTMENTS IN SECURITIES-99.73% (Cost $133,579,862) | |
OTHER ASSETS LESS LIABILITIES-0.27% | |
| |
Investment Abbreviations: |
|
|
|
GBP-British Pound Sterling |
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International Corporate Bond ETF (PICB)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| Foreign denominated security. Principal amount is denominated in the currency indicated. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $96,794,976, which represented 76.54% of the Fund’s Net Assets. |
| Security issued at a fixed rate for a specific period of time, after which it will convert to a variable rate. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| 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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Assets and Liabilities
October 31, 2024
| Invesco 0-5 Yr US TIPS ETF (PBTP) | Invesco Emerging Markets Sovereign Debt ETF (PCY) | Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) | Invesco International Corporate Bond ETF (PICB) |
| | | | |
Unaffiliated investments in securities, at value(a) | | | | |
Affiliated investments in securities, at value | | | | |
| | | | |
Foreign currencies, at value | | | | |
| | | | |
Cash segregated as collateral | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investments matured, at value | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Collateral upon return of securities loaned | | | | |
Collateral upon receipt of securities in-kind | | | | |
| | | | |
Accrued unitary management fees | | | | |
| | | | |
| | | | |
| | | | |
Shares of beneficial interest | | | | |
Distributable earnings (loss) | | | | |
| | | | |
Shares outstanding (unlimited amount authorized, $0.01 par value) | | | | |
| | | | |
| | | | |
Unaffiliated investments in securities, at cost | | | | |
Affiliated investments in securities, at cost | | | | |
Foreign currencies, at cost | | | | |
Investments matured, at cost | | | | |
(a)Includes securities on loan with an aggregate value of: | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Operations
For the year ended October 31, 2024
| Invesco 0-5 Yr US TIPS ETF (PBTP) | Invesco Emerging Markets Sovereign Debt ETF (PCY) | Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) | Invesco International Corporate Bond ETF (PICB) |
| | | | |
Unaffiliated interest income | | | | |
Unaffiliated dividend income | | | | |
Affiliated dividend income | | | | |
Securities lending income, net | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Realized and unrealized gain (loss) from: | | | | |
Net realized gain (loss) from: | | | | |
Unaffiliated investment securities | | | | |
Affiliated investment securities | | | | |
| | | | |
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Change in net unrealized appreciation (depreciation) of: | | | | |
Unaffiliated investment securities | | | | |
Affiliated investment securities | | | | |
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Change in net unrealized appreciation | | | | |
Net realized and unrealized gain | | | | |
Net increase in net assets resulting from operations | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| Invesco 0-5 Yr US TIPS ETF (PBTP) | Invesco Emerging Markets Sovereign Debt ETF (PCY) |
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Change in net unrealized appreciation | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
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Total distributions to shareholders | | | | |
Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
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Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase (decrease) in net assets | | | | |
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Changes in Shares Outstanding: | | | | |
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Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) | Invesco International Corporate Bond ETF (PICB) |
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Invesco 0-5 Yr US TIPS ETF (PBTP)
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Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
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Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
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Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
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Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
Invesco Emerging Markets Sovereign Debt ETF (PCY)
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Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
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Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
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Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
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Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY)
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Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
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Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
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Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
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Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended October 31, 2023, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco International Corporate Bond ETF (PICB)
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Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
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Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
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Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
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Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
Invesco Exchange-Traded Fund Trust II
October 31, 2024
Invesco Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following portfolios:
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Invesco 0-5 Yr US TIPS ETF (PBTP) | |
Invesco Emerging Markets Sovereign Debt ETF (PCY) | "Emerging Markets Sovereign Debt ETF" |
Invesco Global ex-US High Yield Corporate Bond ETF (PGHY) | "Global ex-US High Yield Corporate Bond ETF" |
Invesco International Corporate Bond ETF (PICB) | "International Corporate Bond ETF" |
Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on the following exchanges:
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Emerging Markets Sovereign Debt ETF | |
Global ex-US High Yield Corporate Bond ETF | |
International Corporate Bond ETF | |
The market price of each Share may differ to some degree from a Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit”, as set forth in each Fund’s prospectus. Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”), though each Fund reserves the right to issue and redeem Creation Units in exchange for cash. Except when aggregated in Creation Units by authorized participants (“APs”), the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”):
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| ICE BofA 0-5 Year US Inflation-Linked Treasury IndexSM |
Emerging Markets Sovereign Debt ETF | DBIQ Emerging Market USD Liquid Balanced Index |
Global ex-US High Yield Corporate Bond ETF | ICE USD Global High Yield Excluding US Issuers Constrained Index |
International Corporate Bond ETF | S&P International Corporate Bond Index® |
NOTE 2—Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
A.
Security Valuation - Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day NAV per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Capital Management LLC (the “Adviser”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange (“NYSE”), closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depositary receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, the potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer-specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair
valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to a Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of a Fund’s NAV and, accordingly, they reduce a Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
C.
Country Determination - For the purposes of presentation in the Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether each Fund’s Underlying Index has made a country determination and may include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Dividends and Distributions to Shareholders - Each Fund (except 0-5 Yr US TIPS ETF) declares and pays dividends from net investment income, if any, to its shareholders monthly and records such dividends on the ex-dividend date. 0-5 Yr US TIPS ETF declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on the ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on the ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.
E.
Federal Income Taxes - Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes - Certain Funds are subject to foreign withholding tax imposed by certain foreign countries in which the Funds may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. Certain Funds may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. Certain Funds will record a receivable for such tax
refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign tax reclaims on the Statements of Assets and Liabilities. There is no guarantee that a Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statements of Operations, and any related interest is included in Unaffiliated interest income. Certain Funds may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are excluded from the unitary management fee and are reflected on the Statements of Operations as Professional fees, if any. In the event tax refunds received by a Fund during the fiscal year exceed the foreign withholding taxes paid by a Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the fiscal year ended October 31, 2024, the Funds did not enter into any closing agreements.
G.
Expenses - Each Fund has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust or the Adviser (an "Interested Trustee"), or (iii) any other matters that directly benefit the Adviser).
Expenses of the Trust that are excluded from a Fund’s unitary management fee and are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are excluded from a Fund’s unitary management fee and are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
H.
Accounting Estimates - The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications - Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Board member who is not an "interested person" (as defined in the 1940 Act) of the Trust or the Adviser (each, an "Independent Trustee") is also indemnified against certain liabilities arising out of the performance of their duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Treasury Inflation-Protected Securities - 0-5 Yr US TIPS ETF will invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as Treasury Inflation-Protected Securities inflation adjustment in the Statements of Operations, even though investors do not receive their principal until maturity.
K.
Securities Lending - Each Fund may participate in securities lending and may loan portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the
borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. For Funds that participated in securities lending, dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income, net on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a securities lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the fiscal year ended October 31, 2024, there were no affiliated securities lending transactions with Invesco.
L.
Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. Each Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statements of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.
Each Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which a Fund invests.
The performance of a Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause a Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that a Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of a Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statements of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
AP Concentration Risk. Only APs may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Additionally, investments in non-U.S. securities may have lower trading volumes or could experience extended market closures or trading halts. To the extent that a Fund invests in non-U.S. securities, it may face increased risks that APs may not be able to effectively create or redeem Creation Units, or that the Shares may be halted and/or delisted.
Call Risk. If interest rates fall, it is possible that issuers of callable securities with high interest coupons will “call” (or prepay) their bonds before their maturity date. If an issuer exercises such a call during a period of declining interest rates, a Fund may have to replace such called security with a lower yielding security. If that were to happen, such Fund’s net investment income could fall.
Changing Fixed-Income Market Conditions Risk. Fluctuations in the federal funds and equivalent foreign interest rates or other changes to monetary policy or regulatory actions may expose fixed-income markets to heightened volatility, perhaps suddenly and to a significant degree, and to reduced liquidity for certain fixed-income investments, particularly those with longer maturities, when rates increase. Such changes and resulting increased volatility may adversely impact a Fund, including its operations and return potential. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed-income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed-income markets. As a result, the value of a Fund’s investments and share price may decline. Changes in central bank policies and other governmental actions and political events within the U.S. and abroad may also, among other things, affect investor and consumer expectations and confidence in the financial markets. This could result in higher than normal redemptions by APs, which could potentially increase a Fund’s portfolio turnover rate and transaction costs.
Currency Risk. Because each Fund’s NAV is determined in U.S. dollars, a Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar. Generally, an increase in the value of the U.S. dollar against a foreign currency will reduce the value of a security denominated in that foreign currency, thereby decreasing a Fund’s overall NAV. Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions, causing an adverse impact on a Fund. As a result, investors have the potential for losses regardless of the length of time they intend to hold Shares.
Emerging Markets Sovereign Debt Risk. Government obligors in emerging market countries are among the world’s largest debtors to commercial banks, other governments, international financial organizations and other financial institutions. Historically, certain issuers of the government debt securities in which Emerging Markets Sovereign Debt ETF may invest have experienced substantial difficulties in meeting their external debt obligations, resulting in defaults on certain obligations and the restructuring of certain indebtedness. Such restructuring arrangements have included obtaining additional credit to finance outstanding obligations and the reduction and rescheduling of payments of interest and principal through the negotiation of new or amended credit agreements.
Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. Fixed-income securities with longer maturities typically are more sensitive to changes in interest rates, making them more volatile than securities with shorter maturities. Credit risk refers to the possibility that the issuer of a security will be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. There is a possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may occur quickly and without advance warning following sudden market downturns or unexpected developments involving an issuer, and which may adversely affect the liquidity and value of the security.
Foreign Fixed-Income Investment Risk. For certain Funds, investments in fixed-income securities of non-U.S. issuers are subject to the same risks as other debt securities, notably credit risk, market risk, interest rate risk and liquidity risk, while also facing risks beyond those associated with investments in U.S. securities. For example, foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information, and less reliable financial information about issuers, and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping standards, comparable to those applicable to domestic issuers. Foreign securities also are subject to the risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory taxes, currency blockage and/or transfer restrictions and higher transactional costs.
Geographic Concentration Risk. A Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative impact on a Fund’s investment performance. For example, a natural or other disaster could occur in a country or geographic region in which a Fund invests, which could affect the economy or particular business operations of companies in that specific country or geographic region and adversely impact the Fund’s investments in the affected region.
Index Risk. Unlike many investment companies that are "actively managed", each Fund is a "passive" investor and therefore does not utilize an investing strategy that seeks returns in excess of its respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. If a specific security is removed from an Underlying Index, its respective Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally, each
Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to each Fund’s rebalance schedule. Further, unlike with an actively managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and economic conditions, a Fund’s performance could be lower than other types of funds with investment advisers that actively manage their portfolio assets to take advantage of market opportunities or defend against market events.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or industry group. To the extent that each Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the corresponding Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, each Fund may face more risks than if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which each Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
Inflation-Linked Security Risk. The value of inflation-linked securities generally will fluctuate in response to changes in real interest rates, generally decreasing when real interest rates rise and increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates reduced by the expected impact of inflation. In addition, interest payments on inflation -indexed securities will generally vary up or down along with the rate of inflation.
Liquidity Risk. Liquidity risk exists when a particular investment is difficult to purchase or sell. If a Fund invests in illiquid securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because the Fund may be unable to sell the illiquid securities at an advantageous time or price.
Market Risk. Securities in each Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in an Underlying Index. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises or other events could result in increased premiums or discounts to each Fund’s NAV.
Non-Correlation Risk. Each Fund’s return may not match the return of its corresponding Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its corresponding Underlying Index. Additionally, a Fund’s use of a representative sampling methodology may cause the Fund not to be as well-correlated with the return of its corresponding Underlying Index as would be the case if the Fund purchased all of the securities in its corresponding Underlying Index in the proportions represented in the Underlying Index. In addition, the performance of each Fund and its corresponding Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its corresponding Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Non-Investment Grade Securities Risk. Non-investment grade securities (commonly known as "junk bonds" or "high yield bonds") and unrated securities of comparable credit quality are considered speculative and are subject to the increased risk of an issuer’s inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the non-investment grade securities markets generally, real or perceived adverse economic and competitive industry conditions and less secondary market liquidity. If the issuer of non-investment grade securities defaults, a Fund may incur additional expenses to seek recovery.
Restricted Securities Risk. Certain Funds may invest in restricted securities, including those that may be resold only in accordance with Regulation S under the Securities Act of 1933. Regulation S securities are securities of U.S. and non-U.S. issuers initially offered and sold outside the United States without registration with the SEC. Accordingly, the liquidity of the market for specific Regulation S securities may vary. Delay or difficulty in selling such securities may result in a loss to the Funds.
Sampling Risk. Certain Funds’ use of a representative sampling methodology may result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development with respect to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
U.S. Government Obligations Risk. Certain Funds may invest in U.S. Government obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities, including bills, notes and bonds issued by the U.S. Treasury. U.S. Government securities include securities that are issued or guaranteed by the U.S. Treasury, by various agencies of the U.S. Government, or by various instrumentalities which have been established or sponsored by the U.S. Government. U.S. Treasury securities are backed by the “full faith and credit” of the United States, which may be negatively affected by an actual or threatened failure of the U.S. Government to pay its obligation. Securities issued or guaranteed by federal agencies
and U.S. Government-sponsored instrumentalities may or may not be backed by the full faith and credit of the United States. In the case of those U.S. Government securities not backed by the full faith and credit of the United States, the investor must look principally to the agency or instrumentality issuing or guaranteeing the security for ultimate repayment, and may not be able to assert a claim against the United States itself in the event that the agency or instrumentality does not meet its commitment. The U.S. Government, its agencies and instrumentalities do not guarantee the market value of their securities, and consequently, the value of such securities may fluctuate.
Valuation Risk. Financial information related to securities of non-U.S. issuers may be less reliable than information related to securities of U.S. issuers, which may make it difficult to obtain a current price for a non-U.S. security held by a Fund. In certain circumstances, market quotations may not be readily available for some Fund securities, and those securities may be fair valued. The value established for a security through fair valuation may be different from what would be produced if the security had been valued using market quotations. Fund securities that are valued using techniques other than market quotations, including “fair valued” securities, may be subject to greater fluctuations in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that a Fund could sell a portfolio security for the value established for it at any time, and it is possible that a Fund would incur a loss because a security is sold at a discount to its established value.
NOTE 3—Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.
Pursuant to the Investment Advisory Agreement, each Fund accrues daily and pays monthly to the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:
| Unitary Management Fees (as a % of average daily net assets) |
| |
Emerging Markets Sovereign Debt ETF | |
Global ex-US High Yield Corporate Bond ETF | |
International Corporate Bond ETF | |
Through at least August 31, 2026, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. This waiver does not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date.
For the fiscal year ended October 31, 2024, the Adviser waived fees for each Fund in the following amounts:
| |
Emerging Markets Sovereign Debt ETF | |
Global ex-US High Yield Corporate Bond ETF | |
International Corporate Bond ETF | |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement on behalf of each Fund with the following entities (each, a “Licensor”):
| |
| |
Emerging Markets Sovereign Debt ETF | Deutsche Bank Securities Inc. |
Global ex-US High Yield Corporate Bond ETF | |
International Corporate Bond ETF | S&P Dow Jones Indices LLC |
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.
The Trust has entered into service agreements whereby BNYM, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
NOTE 4—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
| | | | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
Emerging Markets Sovereign Debt ETF | | | | |
Investments in Securities | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | |
| | | | |
| | | | |
Global ex-US High Yield Corporate Bond ETF | | | | |
Investments in Securities | | | | |
U.S. Dollar Denominated Bonds & Notes | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Other Investments - Assets | | | | |
| | | | |
| | | | |
International Corporate Bond ETF | | | | |
Investments in Securities | | | | |
Non-U.S. Dollar Denominated Bonds & Notes | | | | |
| | | | |
| | | | |
NOTE 5—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023:
| | |
| | | | |
| | | | |
Emerging Markets Sovereign Debt ETF | | | | |
Global ex-US High Yield Corporate Bond ETF | | | | |
International Corporate Bond ETF | | | | |
| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Fiscal Year-End:
| Undistributed Ordinary Income | Net Unrealized Appreciation (Depreciation)- Investments | Net Unrealized Appreciation (Depreciation)- Foreign Currencies | Capital Loss Carryforwards | Shares of Beneficial Interest | |
| | | | | | |
Emerging Markets Sovereign Debt ETF | | | | | | |
Global ex-US High Yield Corporate Bond ETF | | | | | | |
International Corporate Bond ETF | | | | | | |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Funds have capital loss carryforwards as of October 31, 2024, as follows:
| | |
| | | |
| | | |
Emerging Markets Sovereign Debt ETF | | | |
Global ex-US High Yield Corporate Bond ETF | | | |
International Corporate Bond ETF | | | |
| Capital loss carryforwards are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 6—Investment Transactions
For the fiscal year ended October 31, 2024, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:
| | |
| | |
Emerging Markets Sovereign Debt ETF | | |
Global ex-US High Yield Corporate Bond ETF | | |
International Corporate Bond ETF | | |
For the fiscal year ended October 31, 2024, in-kind transactions associated with creations and redemptions were as follows:
| | |
| | |
Emerging Markets Sovereign Debt ETF | | |
Global ex-US High Yield Corporate Bond ETF | | |
International Corporate Bond ETF | | |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |
| | | | |
Emerging Markets Sovereign Debt ETF | | | | |
Global ex-US High Yield Corporate Bond ETF | | | | |
International Corporate Bond ETF | | | | |
NOTE 7—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions, taxable overdistributions and foreign currency transactions, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended October 31, 2024, the reclassifications were as follows:
| Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest |
| | | |
Emerging Markets Sovereign Debt ETF | | | |
Global ex-US High Yield Corporate Bond ETF | | | |
International Corporate Bond ETF | | | |
NOTE 8—Trustees’ and Officer’s Fees
The Adviser, as a result of each Fund’s unitary management fee, pays remuneration to the Independent Trustees and an Officer of the Trust on behalf of the Funds. Interested Trustees do not receive any Trustees’ fees.
The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to a Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Shares are issued and redeemed by each Fund only in Creation Units as discussed in Note 1. Only APs are permitted to purchase or redeem Creation Units from the Funds.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an AP, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the AP to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the AP’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Exchange-Traded Fund Trust II and Shareholders of Invesco 0-5 Yr US TIPS ETF, Invesco Emerging Markets Sovereign Debt ETF, Invesco Global ex-US High Yield Corporate Bond ETF and Invesco International Corporate Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Invesco 0-5 Yr US TIPS ETF, Invesco Emerging Markets Sovereign Debt ETF, Invesco Global ex-US High Yield Corporate Bond ETF and Invesco International Corporate Bond ETF (four of the funds constituting Invesco Exchange-Traded Fund Trust II, hereafter collectively referred to as the “Funds”) as of October 31, 2024, the related statements of operations for the year ended October 31, 2024, the statements of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2024, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2024 and each of the financial highlights for each of the five years in the period ended October 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
December 23, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| | | Corporate Dividends Received Deduction* | | | |
Invesco 0-5 Yr US TIPS ETF | | | | | | |
Invesco Emerging Markets Sovereign Debt ETF | | | | | | |
Invesco Global ex-US High Yield Corporate Bond ETF | | | | | | |
Invesco International Corporate Bond ETF | | | | | | |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
©2024 Invesco Capital Management LLC
3500 Lacey Road, Suite 700
Downers Grove, IL 60515
P-FI-NCSR
invesco.com/ETFs
Invesco Annual Financial Statements and Other Information | Invesco S&P Emerging Markets Low Volatility ETF |
| Invesco S&P Emerging Markets Momentum ETF |
| Invesco S&P International Developed Low Volatility ETF |
| Invesco S&P International Developed Momentum ETF |
Invesco S&P Emerging Markets Low Volatility ETF (EELV)
October 31, 2024
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Common Stocks & Other Equity Interests-99.78% |
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Banco Santander Brasil S.A., Series CPO | | | |
BB Seguridade Participacoes S.A. | | | |
Caixa Seguridade Participacoes S.A. | | | |
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Centrais Eletricas Brasileiras S.A. | | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | | | |
Cia Paranaense de Energia, Class B, Preference Shares | | | |
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ENGIE Brasil Energia S.A. | | | |
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Itau Unibanco Holding S.A., Preference Shares | | | |
Itausa S.A., Preference Shares | | | |
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Banco de Credito e Inversiones S.A. | | | |
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Bank of China Ltd., H Shares | | | |
China CITIC Bank Corp. Ltd., H Shares | | | |
China Construction Bank Corp., H Shares | | | |
China Merchants Port Holdings Co. Ltd. | | | |
China Minsheng Banking Corp. Ltd., H Shares(a) | | | |
Chongqing Rural Commercial Bank Co. Ltd., H Shares | | | |
Industrial & Commercial Bank of China Ltd., H Shares | | | |
Jiangsu Expressway Co. Ltd., H Shares | | | |
People’s Insurance Co. (Group) of China Ltd. (The), H Shares | | | |
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Bancolombia S.A., Preference Shares | | | |
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Hellenic Telecommunications Organization S.A. | | | |
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MOL Hungarian Oil & Gas PLC | | | |
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Dr. Reddy’s Laboratories Ltd., ADR(a) | | | |
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Reliance Industries Ltd., GDR(b) | | | |
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PT Indofood Sukses Makmur Tbk | | | |
PT Sumber Alfaria Trijaya Tbk | | | |
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Kuwait Finance House K.S.C.P. | | | |
Mobile Telecommunications Co. K.S.C.P. | | | |
National Bank of Kuwait S.A.K.P. | | | |
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Malaysia Airports Holdings Bhd. | | | |
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Petronas Chemicals Group Bhd. | | | |
Press Metal Aluminium Holdings Bhd. | | | |
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America Movil S.A.B. de C.V., Class B | | | |
Arca Continental S.A.B. de C.V. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Low Volatility ETF (EELV)—(continued)
October 31, 2024
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El Puerto de Liverpool S.A.B. de C.V., Class C-1 | | | |
Fomento Economico Mexicano S.A.B. de C.V., Series CPO(c) | | | |
Grupo Comercial Chedraui S.A. de C.V. | | | |
Grupo Elektra S.A.B. de C.V.(d) | | | |
Wal-Mart de Mexico S.A.B. de C.V., Series V | | | |
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Bank of the Philippine Islands | | | |
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Commercial Bank P.S.Q.C. (The) | | | |
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Mesaieed Petrochemical Holding Co. Q.P.S.C. | | | |
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Qatar Islamic Bank Q.P.S.C. | | | |
Qatar National Bank Q.P.S.C. | | | |
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X5 Retail Group N.V., GDR(b)(d)(e) | | | |
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Sahara International Petrochemical Co. | | | |
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Saudi Aramco Base Oil Co. | | | |
Saudi Basic Industries Corp. | | | |
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Saudi Industrial Investment Group | | | |
Saudi Investment Bank (The) | | | |
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Yanbu National Petrochemical Co., Class A | | | |
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Aspen Pharmacare Holdings Ltd.(a) | | | |
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Korean Air Lines Co. Ltd. | | | |
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NH Investment & Securities Co. Ltd. | | | |
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Catcher Technology Co. Ltd. | | | |
Cathay Financial Holding Co. Ltd. | | | |
Chang Hwa Commercial Bank Ltd. | | | |
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Chunghwa Telecom Co. Ltd. | | | |
CTBC Financial Holding Co. Ltd. | | | |
E.Sun Financial Holding Co. Ltd. | | | |
Far Eastern New Century Corp. | | | |
Far EasTone Telecommunications Co. Ltd. | | | |
First Financial Holding Co. Ltd. | | | |
Formosa Chemicals & Fibre Corp. | | | |
Formosa Petrochemical Corp. | | | |
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Fubon Financial Holding Co. Ltd. | | | |
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Hua Nan Financial Holdings Co. Ltd. | | | |
KGI Financial Holding Co. Ltd. | | | |
Mega Financial Holding Co. Ltd. | | | |
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President Chain Store Corp. | | | |
Shanghai Commercial & Savings Bank Ltd. (The) | | | |
SinoPac Financial Holdings Co. Ltd. | | | |
Synnex Technology International Corp. | | | |
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Taichung Commercial Bank Co. Ltd. | | | |
Taishin Financial Holding Co. Ltd. | | | |
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Taiwan Cooperative Financial Holding Co. Ltd. | | | |
Taiwan Fertilizer Co. Ltd. | | | |
Taiwan High Speed Rail Corp. | | | |
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TCC Group Holdings Co. Ltd. | | | |
Uni-President Enterprises Corp. | | | |
Yuanta Financial Holding Co. Ltd. | | | |
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Advanced Info Service PCL, NVDR | | | |
Airports of Thailand PCL, NVDR | | | |
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Bangkok Chain Hospital PCL, NVDR | | | |
Bangkok Dusit Medical Services PCL, NVDR | | | |
Bangkok Expressway & Metro PCL, NVDR | | | |
Bumrungrad Hospital PCL, NVDR | | | |
Central Pattana PCL, NVDR | | | |
| | | |
Gulf Energy Development PCL, NVDR | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Low Volatility ETF (EELV)—(continued)
October 31, 2024
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Intouch Holdings PCL, NVDR | | | |
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Krung Thai Bank PCL, NVDR | | | |
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PTT Exploration & Production PCL, NVDR | | | |
PTT Oil & Retail Business PCL, NVDR | | | |
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Siam Cement PCL (The), NVDR | | | |
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Thai Union Group PCL, NVDR | | | |
Tisco Financial Group PCL, NVDR | | | |
TMBThanachart Bank PCL, NVDR | | | |
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United Arab Emirates-6.44% |
Abu Dhabi Commercial Bank PJSC | | | |
Abu Dhabi Islamic Bank PJSC | | | |
Abu Dhabi National Oil Co. for Distribution PJSC | | | |
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ADNOC Logistics & Services | | | |
Dubai Electricity and Water Authority PJSC | | | |
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Emirates Telecommunications Group Co. PJSC | | | |
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First Abu Dhabi Bank PJSC | | | |
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Total Common Stocks & Other Equity Interests (Cost $394,214,239) | |
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Invesco Government & Agency Portfolio, Institutional Class, 4.77%(f)(g) (Cost $30,856) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.79% (Cost $394,245,095) | |
Investments Purchased with Cash Collateral from Securities on Loan |
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Invesco Private Government Fund, 4.84%(f)(g)(h) | | | |
Invesco Private Prime Fund, 4.99%(f)(g)(h) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $9,418,071) | |
TOTAL INVESTMENTS IN SECURITIES-102.07% (Cost $403,663,166) | |
OTHER ASSETS LESS LIABILITIES-(2.07)% | |
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Investment Abbreviations: |
ADR-American Depositary Receipt |
CPO-Certificates of Ordinary Participation |
GDR-Global Depositary Receipt |
NVDR-Non-Voting Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Low Volatility ETF (EELV)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $5,148,875, which represented 1.25% of the Fund’s Net Assets. |
| Each CPO for Fomento Economico Mexicano, S.A.B. de C.V. represents one Series B share and four Series D shares. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Momentum ETF (EEMO)
October 31, 2024
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Common Stocks & Other Equity Interests-99.68% |
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Caixa Seguridade Participacoes S.A. | | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | | | |
NU Holdings Ltd., Class A(a) | | | |
Petroleo Brasileiro S.A., Preference Shares | | | |
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LATAM Airlines Group S.A.(a) | | | |
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CGN Power Co. Ltd., H Shares(b) | | | |
China Shenhua Energy Co. Ltd., H Shares | | | |
Chongqing Rural Commercial Bank Co. Ltd., H Shares | | | |
Pop Mart International Group Ltd.(b) | | | |
Tencent Music Entertainment Group, ADR | | | |
Yangzijiang Shipbuilding Holdings Ltd. | | | |
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Commercial International Bank Egypt S.A.E. | | | |
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Adani Ports & Special Economic Zone Ltd. | | | |
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Bharat Heavy Electricals Ltd. | | | |
Bharat Petroleum Corp. Ltd. | | | |
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Central Bank of India Ltd.(a) | | | |
CG Power and Industrial Solutions Ltd. | | | |
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Colgate-Palmolive (India) Ltd. | | | |
Coromandel International Ltd. | | | |
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Dixon Technologies India Ltd.(b) | | | |
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Fertilisers and Chemicals Travancore Ltd. (The) | | | |
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General Insurance Corp. of India(b) | | | |
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GlaxoSmithKline Pharmaceuticals Ltd. | | | |
GMR Airports Infrastructure Ltd.(a) | | | |
Godrej Properties Ltd.(a) | | | |
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HDFC Asset Management Co. Ltd.(b) | | | |
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Hindustan Aeronautics Ltd.(b) | | | |
Hindustan Petroleum Corp. Ltd. | | | |
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ICICI Lombard General Insurance Co. Ltd.(b) | | | |
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Indian Hotels Co. Ltd. (The) | | | |
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Indian Railway Finance Corp. Ltd.(b) | | | |
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InterGlobe Aviation Ltd.(a)(b) | | | |
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Life Insurance Corp. of India | | | |
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Macrotech Developers Ltd.(b) | | | |
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Max Healthcare Institute Ltd. | | | |
Mazagon Dock Shipbuilders Ltd. | | | |
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Oil & Natural Gas Corp. Ltd. | | | |
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Oracle Financial Services Software Ltd. | | | |
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Power Grid Corp. of India Ltd. | | | |
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Samvardhana Motherson International Ltd. | | | |
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Momentum ETF (EEMO)—(continued)
October 31, 2024
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Solar Industries India Ltd. | | | |
Sun Pharmaceutical Industries Ltd. | | | |
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Tata Consumer Products Ltd. | | | |
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Tata Power Co. Ltd. (The) | | | |
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Torrent Pharmaceuticals Ltd. | | | |
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PT Adaro Energy Indonesia Tbk | | | |
PT Amman Mineral Internasional Tbk(a) | | | |
PT Bank Syariah Indonesia Tbk | | | |
PT Chandra Asri Petrochemical Tbk | | | |
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IOI Properties Group Bhd. | | | |
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Malaysia Airports Holdings Bhd. | | | |
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YTL Power International Bhd. | | | |
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Grupo Comercial Chedraui S.A. de C.V. | | | |
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International Container Terminal Services, Inc. | | | |
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Bank Polska Kasa Opieki S.A. | | | |
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Powszechna Kasa Oszczednosci Bank Polski S.A. | | | |
Santander Bank Polska S.A. | | | |
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Capitec Bank Holdings Ltd. | | | |
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Hana Financial Group, Inc. | | | |
Hanmi Semiconductor Co. Ltd. | | | |
Hanwha Aerospace Co. Ltd. | | | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd.(a) | | | |
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Hyundai Motor Co., First Pfd. | | | |
Hyundai Motor Co., Second Pfd. | | | |
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Meritz Financial Group, Inc. | | | |
NH Investment & Securities Co. Ltd. | | | |
Shinhan Financial Group Co. Ltd. | | | |
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Woori Financial Group, Inc. | | | |
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Asia Vital Components Co. Ltd. | | | |
Cathay Financial Holding Co. Ltd. | | | |
Chicony Electronics Co. Ltd. | | | |
Compeq Manufacturing Co. Ltd. | | | |
CTBC Financial Holding Co. Ltd. | | | |
Evergreen Marine Corp. Taiwan Ltd. | | | |
Fubon Financial Holding Co. Ltd. | | | |
Highwealth Construction Corp. | | | |
Hon Hai Precision Industry Co. Ltd. | | | |
Hua Nan Financial Holdings Co. Ltd. | | | |
International Games System Co. Ltd. | | | |
Jentech Precision Industrial Co. Ltd. | | | |
King Yuan Electronics Co. Ltd. | | | |
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Makalot Industrial Co. Ltd. | | | |
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Powertech Technology, Inc. | | | |
Radiant Opto-Electronics Corp. | | | |
SinoPac Financial Holdings Co. Ltd. | | | |
Taichung Commercial Bank Co. Ltd. | | | |
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Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
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Yuanta Financial Holding Co. Ltd. | | | |
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AG Anadolu Grubu Holding A.S. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Momentum ETF (EEMO)—(continued)
October 31, 2024
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Anadolu Efes Biracilik ve Malt Sanayii A.S. | | | |
Aselsan Elektronik Sanayi Ve Ticaret A.S. | | | |
BIM Birlesik Magazalar A.S. | | | |
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Haci Omer Sabanci Holding A.S. | | | |
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Otokar Otomotiv ve Savunma Sanayi A.S. | | | |
TAV Havalimanlari Holding A.S.(a) | | | |
Turk Telekomunikasyon A.S.(a) | | | |
Turkcell Iletisim Hizmetleri A.S. | | | |
Turkiye Garanti Bankasi A.S. | | | |
Turkiye Is Bankasi A.S., Class C | | | |
Turkiye Petrol Rafinerileri A.S. | | | |
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Yapi ve Kredi Bankasi A.S. | | | |
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United Arab Emirates-0.40% |
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Total Common Stocks & Other Equity Interests (Cost $8,075,806) | |
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Invesco Government & Agency Portfolio, Institutional Class, 4.77%(e)(f) (Cost $125,162) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-101.06% (Cost $8,200,968) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $47,891) | |
TOTAL INVESTMENTS IN SECURITIES-101.59% (Cost $8,248,859) | |
OTHER ASSETS LESS LIABILITIES-(1.59)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
|
Notes to Schedule of Investments: |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $320,757, which represented 3.54% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Emerging Markets Momentum ETF (EEMO)—(continued)
October 31, 2024
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Low Volatility ETF (IDLV)
October 31, 2024
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Common Stocks & Other Equity Interests-99.51% |
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Commonwealth Bank of Australia | | | |
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National Australia Bank Ltd. | | | |
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Washington H Soul Pattinson & Co. Ltd.(a) | | | |
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CA Immobilien Anlagen AG(a) | | | |
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Ackermans & van Haaren N.V. | | | |
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Anheuser-Busch InBev S.A./N.V. | | | |
Groupe Bruxelles Lambert N.V. | | | |
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Bank of Nova Scotia (The) | | | |
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Canadian Imperial Bank of Commerce | | | |
Canadian National Railway Co. | | | |
Canadian Pacific Kansas City Ltd. | | | |
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Element Fleet Management Corp. | | | |
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Pembina Pipeline Corp.(a) | | | |
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Rogers Communications, Inc., Class B | | | |
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Toronto-Dominion Bank (The) | | | |
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Wilmar International Ltd. | | | |
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Cie Generale des Etablissements Michelin S.C.A. | | | |
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Veolia Environnement S.A. | | | |
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Henkel AG & Co. KGaA, Preference Shares(a) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Low Volatility ETF (IDLV)—(continued)
October 31, 2024
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Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | | | |
Siemens Healthineers AG(c) | | | |
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Cathay Pacific Airways Ltd.(a) | | | |
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Check Point Software Technologies Ltd.(b) | | | |
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Assicurazioni Generali S.p.A. | | | |
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| | | |
Infrastrutture Wireless Italiane S.p.A.(a)(c) | | | |
Mediobanca Banca di Credito Finanziario S.p.A. | | | |
| | | |
| | | |
| | | |
| | | |
|
Advance Residence Investment Corp. | | | |
| | | |
| | | |
Daito Trust Construction Co. Ltd. | | | |
Daiwa House REIT Investment Corp. | | | |
| | | |
Japan Metropolitan Fund Investment Corp. | | | |
Japan Real Estate Investment Corp. | | | |
| | | |
Kirin Holdings Co. Ltd.(a) | | | |
McDonald’s Holdings Co. (Japan) Ltd.(a) | | | |
| | | |
Nippon Building Fund, Inc.(a) | | | |
Nippon Telegraph & Telephone Corp. | | | |
Nomura Real Estate Master Fund, Inc. | | | |
| | | |
| | | |
Takeda Pharmaceutical Co. Ltd. | | | |
United Urban Investment Corp. | | | |
| | | |
|
| | | |
| | | |
Koninklijke Ahold Delhaize N.V. | | | |
| | | |
| | | |
| | | |
|
Auckland International Airport Ltd. | | | |
| | |
|
| | | |
| | | |
| | | |
|
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
CapitaLand Integrated Commercial Trust | | | |
| | | |
| | | |
Mapletree Industrial Trust | | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
| | | |
Singapore Technologies Engineering Ltd. | | | |
Singapore Telecommunications Ltd. | | | |
United Overseas Bank Ltd. | | | |
| | | |
|
| | | |
| | | |
| | | |
Industria de Diseno Textil S.A.(a) | | | |
| | | |
| | | |
| | | |
|
| | | |
Assa Abloy AB, Class B(a) | | | |
| | | |
| | | |
Industrivarden AB, Class C(a) | | | |
| | | |
L E Lundbergforetagen AB, Class B(a) | | | |
| | | |
|
Chocoladefabriken Lindt & Spruengli AG, PC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
| | | |
| | | |
Coca-Cola Europacific Partners PLC | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Low Volatility ETF (IDLV)—(continued)
October 31, 2024
| | |
United Kingdom-(continued) |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
| | | |
London Stock Exchange Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.51% (Cost $251,093,221) | |
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $18,186,502) | |
TOTAL INVESTMENTS IN SECURITIES-106.57% (Cost $269,279,723) | |
OTHER ASSETS LESS LIABILITIES-(6.57)% | |
| |
Investment Abbreviations: |
PC-Participation Certificate |
REIT-Real Estate Investment Trust |
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $6,272,418, which represented 2.43% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Low Volatility ETF (IDLV)—(continued)
October 31, 2024
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Momentum ETF (IDMO)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.76% |
|
| | | |
| | | |
| | | |
Commonwealth Bank of Australia | | | |
| | | |
| | | |
National Australia Bank Ltd.(a) | | | |
| | | |
| | | |
Seven Group Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
Brookfield Asset Management Ltd., Class A | | | |
| | | |
Canadian Imperial Bank of Commerce | | | |
Constellation Software, Inc. | | | |
Descartes Systems Group, Inc. (The)(c) | | | |
| | | |
Fairfax Financial Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Novo Nordisk A/S, Class B | | | |
| | | |
|
| | | |
|
Cie Generale des Etablissements Michelin S.C.A. | | | |
| | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
Check Point Software Technologies Ltd.(c) | | | |
| | | |
| | | |
Teva Pharmaceutical Industries Ltd., ADR(c) | | | |
| | | |
|
Assicurazioni Generali S.p.A. | | | |
| | | |
| | | |
| | | |
Mediobanca Banca di Credito Finanziario S.p.A. | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Canon Marketing Japan, Inc. | | | |
| | | |
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
Concordia Financial Group Ltd. | | | |
Cosmo Energy Holdings Co. Ltd. | | | |
Dai-ichi Life Holdings, Inc. | | | |
Daiwa Securities Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Isetan Mitsukoshi Holdings Ltd.(a) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Momentum ETF (IDMO)—(continued)
October 31, 2024
| | |
|
| | | |
Japan Exchange Group, Inc. | | | |
| | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
Kawasaki Kisen Kaisha Ltd. | | | |
| | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
Mitsubishi Estate Co. Ltd. | | | |
Mitsubishi Heavy Industries Ltd. | | | |
Mitsubishi UFJ Financial Group, Inc. | | | |
| | | |
Mizuho Financial Group, Inc. | | | |
MS&AD Insurance Group Holdings, Inc. | | | |
| | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Recruit Holdings Co. Ltd. | | | |
Resonac Holdings Corp.(a) | | | |
| | | |
Santen Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shin-Etsu Chemical Co. Ltd. | | | |
| | | |
| | | |
Sumitomo Forestry Co. Ltd.(a) | | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | |
| | | |
| | | |
Tokio Marine Holdings, Inc. | | | |
Tokyo Tatemono Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
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| | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
|
Banco Bilbao Vizcaya Argentaria S.A.(a) | | | |
| | | |
Industria de Diseno Textil S.A.(a) | | | |
| | | |
|
| | | |
| | | |
| | | |
Industrivarden AB, Class A | | | |
Investment AB Latour, Class B | | | |
| | | |
| | | |
| | | |
Skandinaviska Enskilda Banken AB, Class A | | | |
Spotify Technology S.A.(c) | | | |
Swedish Orphan Biovitrum AB, Class B(c) | | | |
| | | |
Telefonaktiebolaget LM Ericsson, Class B | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
| | | |
| | | |
| | | |
Rolls-Royce Holdings PLC(c) | | | |
| | | |
| | | |
| | | |
|
ARM Holdings PLC, ADR(a)(c) | | | |
CyberArk Software Ltd.(c) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Momentum ETF (IDMO)—(continued)
October 31, 2024
| | |
United States-(continued) |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.76% (Cost $246,424,797) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
| | |
Money Market Funds-(continued) |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $13,710,451) | |
TOTAL INVESTMENTS IN SECURITIES-105.03% (Cost $260,135,248) | |
OTHER ASSETS LESS LIABILITIES-(5.03)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $571,956, which represented less than 1% of the Fund’s Net Assets. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Assets and Liabilities
October 31, 2024
| Invesco S&P Emerging Markets Low Volatility ETF (EELV) | Invesco S&P Emerging Markets Momentum ETF (EEMO) | Invesco S&P International Developed Low Volatility ETF (IDLV) | Invesco S&P International Developed Momentum ETF (IDMO) |
| | | | |
Unaffiliated investments in securities, at value(a) | | | | |
Affiliated investments in securities, at value | | | | |
| | | | |
Foreign currencies, at value | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Collateral upon return of securities loaned | | | | |
| | | | |
Accrued unitary management fees | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares of beneficial interest | | | | |
Distributable earnings (loss) | | | | |
| | | | |
Shares outstanding (unlimited amount authorized, $0.01 par value) | | | | |
| | | | |
| | | | |
Unaffiliated investments in securities, at cost | | | | |
Affiliated investments in securities, at cost | | | | |
Foreign currencies, at cost | | | | |
(a)Includes securities on loan with an aggregate value of: | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Operations
For the year ended October 31, 2024
| Invesco S&P Emerging Markets Low Volatility ETF (EELV) | Invesco S&P Emerging Markets Momentum ETF (EEMO) | Invesco S&P International Developed Low Volatility ETF (IDLV) | Invesco S&P International Developed Momentum ETF (IDMO) |
| | | | |
Unaffiliated dividend income | | | | |
Affiliated dividend income | | | | |
Securities lending income, net | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Realized and unrealized gain (loss) from: | | | | |
Net realized gain (loss) from: | | | | |
Unaffiliated investment securities | | | | |
Affiliated investment securities | | | | |
| | | | |
| | | | |
| | | | |
Change in net unrealized appreciation (depreciation) of: | | | | |
Unaffiliated investment securities | | | | |
Affiliated investment securities | | | | |
| | | | |
Change in net unrealized appreciation | | | | |
Net realized and unrealized gain | | | | |
Net increase in net assets resulting from operations | | | | |
| Net of foreign taxes of $95,782. |
| Net of foreign taxes of $100,677. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| Invesco S&P Emerging Markets Low Volatility ETF (EELV) | Invesco S&P Emerging Markets Momentum ETF (EEMO) |
| | | | |
| | | | |
| | | | |
| | | | |
Change in net unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
Changes in Shares Outstanding: | | | | |
| | | | |
| | | | |
Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Low Volatility ETF (IDLV) | Invesco S&P International Developed Momentum ETF (IDMO) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Invesco S&P Emerging Markets Low Volatility ETF (EELV)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Expenses, prior to Waivers | | | | | |
| | | | | |
Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco S&P Emerging Markets Momentum ETF (EEMO)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(e) | | | | | |
Net Asset Value Total Return(f) | | | | | |
Market Price Total Return(f) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Expenses, prior to Waivers | | | | | |
| | | | | |
Portfolio turnover rate(g) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.32 and 1.98%, respectively. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.22 and 1.14%, respectively. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco S&P International Developed Low Volatility ETF (IDLV)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Expenses, prior to Waivers | | | | | |
| | | | | |
Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
Invesco S&P International Developed Momentum ETF (IDMO)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Expenses, prior to Waivers | | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Net realized and unrealized gain (loss) on investments per share may not correlate with the Fund’s net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Fund’s investments. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
Invesco Exchange-Traded Fund Trust II
October 31, 2024
Invesco Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following portfolios:
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Invesco S&P Emerging Markets Low Volatility ETF (EELV) | "S&P Emerging Markets Low Volatility ETF" |
Invesco S&P Emerging Markets Momentum ETF (EEMO) | "S&P Emerging Markets Momentum ETF" |
Invesco S&P International Developed Low Volatility ETF (IDLV) | "S&P International Developed Low Volatility ETF" |
Invesco S&P International Developed Momentum ETF (IDMO) | "S&P International Developed Momentum ETF" |
Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc.
The market price of each Share may differ to some degree from a Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit”, as set forth in each Fund’s prospectus. Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”), though each Fund reserves the right to issue and redeem Creation Units in exchange for cash. Except when aggregated in Creation Units by authorized participants (“APs”), the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”).
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S&P Emerging Markets Low Volatility ETF | S&P BMI Emerging Markets Low Volatility IndexTM |
S&P Emerging Markets Momentum ETF | S&P Momentum Emerging Plus LargeMidCap Index |
S&P International Developed Low Volatility ETF | S&P BMI International Developed Low VolatilityTM Index |
S&P International Developed Momentum ETF | S&P World Ex-U.S. Momentum Index |
NOTE 2—Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
A.
Security Valuation - Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day NAV per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Pricing services generally value debt obligations
assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Capital Management LLC (the “Adviser”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange (“NYSE”), closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depositary receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, the potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer-specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in
the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to a Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of a Fund’s NAV and, accordingly, they reduce a Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
C.
Country Determination - For the purposes of presentation in the Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether each Fund’s Underlying Index has made a country determination and may include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Dividends and Distributions to Shareholders - Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on the ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on the ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.
E.
Federal Income Taxes - Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes - Each Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. Each Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. Each Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign tax reclaims on the Statements of Assets and Liabilities. There is no guarantee that a Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statements of Operations, and any related interest is included in Unaffiliated interest income. Each Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are excluded from the unitary management fee and are reflected on the Statements of Operations as Professional fees, if any. In the event tax refunds received by a Fund during the fiscal year exceed the foreign withholding taxes paid by a Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing
agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the fiscal year ended October 31, 2024, the Funds did not enter into any closing agreements.
G.
Expenses - Each Fund has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust or the Adviser (an "Interested Trustee"), or (iii) any other matters that directly benefit the Adviser).
Expenses of the Trust that are excluded from a Fund’s unitary management fee and are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are excluded from a Fund’s unitary management fee and are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
H.
Accounting Estimates - The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications - Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Board member who is not an "interested person" (as defined in the 1940 Act) of the Trust or the Adviser (each, an "Independent Trustee") is also indemnified against certain liabilities arising out of the performance of their duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending - Each Fund may participate in securities lending and may loan portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. For Funds that participated in securities lending, dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income, net on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a securities lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the fiscal year ended October 31, 2024, each Fund had affiliated securities lending transactions with Invesco. Fees
paid to Invesco for securities lending agent services, which are included in Securities lending income, net on the Statements of Operations, were incurred by each Fund as listed below:
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S&P Emerging Markets Low Volatility ETF | |
S&P Emerging Markets Momentum ETF | |
S&P International Developed Low Volatility ETF | |
S&P International Developed Momentum ETF | |
K.
Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. Each Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statements of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.
Each Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which a Fund invests.
The performance of a Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause a Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that a Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of a Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statements of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
ADR and GDR Risk. Certain Funds may invest in American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing the underlying foreign securities directly in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks, because their values depend on the performance of the non-dollar denominated underlying foreign securities. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.
AP Concentration Risk. Only APs may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Additionally, investments in non-U.S. securities may have lower trading volumes or could experience extended market closures or trading halts. To the extent that a Fund invests in non-U.S. securities, it may face increased risks that APs may not be able to effectively create or redeem Creation Units, or that the Shares may be halted and/or delisted.
Currency Risk. Because each Fund’s NAV is determined in U.S. dollars, a Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar. Generally, an increase in the value of the U.S. dollar against a foreign currency will reduce the value of a security denominated in that foreign currency, thereby decreasing a Fund’s overall NAV. Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions, causing an adverse impact on a Fund. As a result, investors have the potential for losses regardless of the length of time they intend to hold Shares.
Emerging Markets Investment Risk. For certain Funds, investments in the securities of issuers in emerging market countries involve risks often not associated with investments in the securities of issuers in developed countries. Securities in emerging markets may be subject to greater price fluctuations than securities in more developed markets. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. In addition, information about such companies may be less available and reliable. Emerging markets usually are subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than are more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably, and the ability to bring and enforce actions, or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent and subject to sudden change. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. In addition, lack of relevant data and reliable public information, including financial information, about securities in emerging markets may contribute to incorrect weightings and data and computational errors when a Fund’s index provider selects securities for inclusion in the Fund’s Underlying Index or rebalances the Underlying Index.
Equity Risk. Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that each Fund holds. In addition, equity risk includes the risk that investor sentiment toward one or more industries will become negative, resulting in those investors exiting their investments in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a company’s common stock may fall solely because of factors, such as an increase in production costs that negatively impact other companies in the same region, industry or sector of the market. A company’s common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company’s products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.
Foreign Investment Risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping standards, comparable to those applicable to domestic issuers. Foreign securities are also subject to the risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory taxes, currency blockage and/or transfer restrictions and higher transactional costs. To the extent a Fund invests in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns. From time to time, certain companies in which the Funds invest may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. Government and the United Nations and/or in countries the U.S. Government identified as state sponsors of terrorism. One or more of these companies may be subject to constraints under U.S. law or regulations that could negatively affect the company’s performance. Additionally, one or more of these companies could suffer damage to its reputation if the market identifies it as a company that invests or deals with countries that the U.S. Government identifies as state sponsors of terrorism or subjects to sanctions.
Geographic Concentration Risk. A Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative impact on a Fund’s investment performance. For example, a natural or other disaster could occur in a country or geographic region in which a Fund invests, which could affect the economy or particular business operations of companies in that specific country or geographic region and adversely impact the Fund’s investments in the affected region.
Index Risk. Unlike many investment companies that are "actively managed", each Fund is a "passive" investor and therefore does not utilize an investing strategy that seeks returns in excess of its respective Underlying Index. Therefore, a Fund would
not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. If a specific security is removed from an Underlying Index, its respective Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally, each Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to each Fund’s rebalance schedule. Further, unlike with an actively managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and economic conditions, a Fund’s performance could be lower than other types of funds with investment advisers that actively manage their portfolio assets to take advantage of market opportunities or defend against market events.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or industry group. To the extent that each Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the corresponding Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, each Fund may face more risks than if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which each Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
Market Risk. Securities in each Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in an Underlying Index. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises or other events could result in increased premiums or discounts to each Fund’s NAV.
Momentum Investing Risk. For certain Funds, the momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that previously have exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously have exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of a Fund may suffer.
Non-Correlation Risk. Each Fund’s return may not match the return of its corresponding Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its corresponding Underlying Index. Additionally, a Fund’s use of a representative sampling methodology may cause the Fund not to be as well-correlated with the return of its corresponding Underlying Index as would be the case if the Fund purchased all of the securities in its corresponding Underlying Index in the proportions represented in the Underlying Index. In addition, the performance of each Fund and its corresponding Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its corresponding Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversification Risk. To the extent certain Funds become non-diversified, such Funds may invest a greater portion of their respective assets in securities of individual issuers than can a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase certain Funds’ volatility and cause the performance of a relatively small number of issuers to have a greater impact on such Funds’ performance.
Portfolio Turnover Risk. Certain Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gains distributions to a Fund’s shareholders, a Fund will seek to utilize the in-kind creation and redemption mechanism to minimize the realization of capital gains to the extent possible.
Sampling Risk. Certain Funds’ use of a representative sampling methodology may result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development with respect to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Valuation Risk. Financial information related to securities of non-U.S. issuers may be less reliable than information related to securities of U.S. issuers, which may make it difficult to obtain a current price for a non-U.S. security held by a Fund. In certain circumstances, market quotations may not be readily available for some Fund securities, and those securities may be fair valued. The value established for a security through fair valuation may be different from what would be produced if the security had been valued using market quotations. Fund securities that are valued using techniques other than market quotations, including “fair valued” securities, may be subject to greater fluctuations in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that a Fund could sell a portfolio security for the value established for it at any time, and it is possible that a Fund would incur a loss because a security is sold at a discount to its established value.
Valuation Time Risk. Because foreign exchanges may be open on days when a Fund does not price its Shares, the value of the non-U.S. securities in a Fund’s portfolio may change on days when you will not be able to purchase or sell your Shares. As a result, trading spreads and the resulting premium or discount on the Shares may widen, and, therefore, increase the difference between the market price of the Shares and the NAV of such Shares.
NOTE 3—Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.
Pursuant to the Investment Advisory Agreement, each Fund accrues daily and pays monthly to the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:
| Unitary Management Fees (as a % of average daily net assets) |
S&P Emerging Markets Low Volatility ETF | |
S&P Emerging Markets Momentum ETF | |
S&P International Developed Low Volatility ETF | |
S&P International Developed Momentum ETF | |
Through at least August 31, 2026, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. This waiver does not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date.
For the fiscal year ended October 31, 2024, the Adviser waived fees for each Fund in the following amounts:
S&P Emerging Markets Low Volatility ETF | |
S&P Emerging Markets Momentum ETF | |
S&P International Developed Low Volatility ETF | |
S&P International Developed Momentum ETF | |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement on behalf of each Fund with S&P Dow Jones Indices LLC (the “Licensor”).
Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.
The Trust has entered into service agreements whereby BNYM, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
For the fiscal year ended October 31, 2024, the Funds incurred brokerage commissions with Invesco Capital Markets, Inc. ("ICMI"), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:
S&P Emerging Markets Low Volatility ETF | |
S&P Emerging Markets Momentum ETF | |
S&P International Developed Low Volatility ETF | |
S&P International Developed Momentum ETF | |
Portfolio transactions with ICMI that have not settled at period-end, if any, are shown in the Statements of Assets and Liabilities under the receivable caption Investments sold - affiliated broker and/or payable caption Investments purchased - affiliated broker.
NOTE 4—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
S&P Emerging Markets Low Volatility ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
S&P Emerging Markets Momentum ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
S&P International Developed Low Volatility ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
S&P International Developed Momentum ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
NOTE 5—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023:
| | |
| | | |
S&P Emerging Markets Low Volatility ETF | | | |
S&P Emerging Markets Momentum ETF | | | |
S&P International Developed Low Volatility ETF | | | |
S&P International Developed Momentum ETF | | | |
| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Fiscal Year-End:
| Undistributed Ordinary Income | Net Unrealized Appreciation- Investments | Net Unrealized Appreciation (Depreciation)- Foreign Currencies | Capital Loss Carryforwards | Shares of Beneficial Interest | |
S&P Emerging Markets Low Volatility ETF | | | | | | |
S&P Emerging Markets Momentum ETF | | | | | | |
S&P International Developed Low Volatility ETF | | | | | | |
S&P International Developed Momentum ETF | | | | | | |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Funds have capital loss carryforwards as of October 31, 2024, as follows:
| | |
| | | |
S&P Emerging Markets Low Volatility ETF | | | |
S&P Emerging Markets Momentum ETF | | | |
S&P International Developed Low Volatility ETF | | | |
S&P International Developed Momentum ETF | | | |
| Capital loss carryforwards are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 6—Investment Transactions
For the fiscal year ended October 31, 2024, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:
| | |
S&P Emerging Markets Low Volatility ETF | | |
S&P Emerging Markets Momentum ETF | | |
S&P International Developed Low Volatility ETF | | |
S&P International Developed Momentum ETF | | |
For the fiscal year ended October 31, 2024, in-kind transactions associated with creations and redemptions were as follows:
| | |
S&P Emerging Markets Low Volatility ETF | | |
S&P Emerging Markets Momentum ETF | | |
S&P International Developed Low Volatility ETF | | |
S&P International Developed Momentum ETF | | |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation | |
S&P Emerging Markets Low Volatility ETF | | | | |
S&P Emerging Markets Momentum ETF | | | | |
S&P International Developed Low Volatility ETF | | | | |
S&P International Developed Momentum ETF | | | | |
NOTE 7—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions, passive foreign investment companies and foreign currency transactions, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended October 31, 2024, the reclassifications were as follows:
| Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest |
S&P Emerging Markets Low Volatility ETF | | | |
S&P Emerging Markets Momentum ETF | | | |
S&P International Developed Low Volatility ETF | | | |
S&P International Developed Momentum ETF | | | |
NOTE 8—Trustees’ and Officer’s Fees
The Adviser, as a result of each Fund’s unitary management fee, pays remuneration to the Independent Trustees and an Officer of the Trust on behalf of the Funds. Interested Trustees do not receive any Trustees’ fees.
The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to a Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Shares are issued and redeemed by each Fund only in Creation Units as discussed in Note 1. Only APs are permitted to purchase or redeem Creation Units from the Funds.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an AP, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the AP to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the AP’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Exchange-Traded Fund Trust II and Shareholders of Invesco S&P Emerging Markets Low Volatility ETF, Invesco S&P Emerging Markets Momentum ETF, Invesco S&P International Developed Low Volatility ETF and Invesco S&P International Developed Momentum ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Invesco S&P Emerging Markets Low Volatility ETF, Invesco S&P Emerging Markets Momentum ETF, Invesco S&P International Developed Low Volatility ETF and Invesco S&P International Developed Momentum ETF (four of the funds constituting Invesco Exchange-Traded Fund Trust II, hereafter collectively referred to as the “Funds”) as of October 31, 2024, the related statements of operations for the year ended October 31, 2024, the statements of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2024, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2024 and each of the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
December 23, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| | | Corporate Dividends Received Deduction* | | | |
Invesco S&P Emerging Markets Low Volatility ETF | | | | | | |
Invesco S&P Emerging Markets Momentum ETF | | | | | | |
Invesco S&P International Developed Low Volatility ETF | | | | | | |
Invesco S&P International Developed Momentum ETF | | | | | | |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
The Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The foreign source income and foreign taxes paid per share are as follows:
| | Foreign Source Income Per Share |
Invesco S&P Emerging Markets Low Volatility ETF | | |
Invesco S&P Emerging Markets Momentum ETF | | |
Invesco S&P International Developed Low Volatility ETF | | |
Invesco S&P International Developed Momentum ETF | | |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
©2024 Invesco Capital Management LLC
3500 Lacey Road, Suite 700
Downers Grove, IL 60515
P-HBLV-NCSR
invesco.com/ETFs
Invesco Annual Financial Statements and Other Information | Invesco China Technology ETF |
| Invesco Dorsey Wright Developed Markets Momentum ETF |
| Invesco Dorsey Wright Emerging Markets Momentum ETF |
| Invesco FTSE RAFI Developed Markets ex-U.S. ETF |
| Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF |
| Invesco FTSE RAFI Emerging Markets ETF |
| Invesco Global Clean Energy ETF |
| |
| Invesco International BuyBack AchieversTM ETF |
| Invesco MSCI Global Climate 500 ETF |
| Invesco MSCI Global Timber ETF |
| Invesco MSCI Green Building ETF |
| Invesco S&P Global Water Index ETF |
| Invesco S&P International Developed Quality ETF |
Invesco China Technology ETF (CQQQ)
October 31, 2024
Schedule of Investments(a)
| | |
Common Stocks & Other Equity Interests-100.00% |
|
PDD Holdings, Inc., ADR (China)(b) | | | |
|
Hithink RoyalFlush Information Network Co. Ltd., A Shares (China) | | | |
Electrical Equipment-0.91% |
China XD Electric Co. Ltd., A Shares (China) | | | |
Qingdao TGOOD Electric Co. Ltd., A Shares (China) | | | |
Sieyuan Electric Co. Ltd., A Shares (China) | | | |
| | | |
Electronic Equipment, Instruments & Components-13.46% |
Avary Holding Shenzhen Co. Ltd., A Shares (China) | | | |
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., A Shares (China) | | | |
BOE Technology Group Co. Ltd., A Shares (China) | | | |
BOE Technology Group Co. Ltd., B Shares (China) | | | |
Chaozhou Three-Circle (Group) Co. Ltd., A Shares (China) | | | |
China Zhenhua (Group) Science & Technology Co. Ltd., A Shares (China) | | | |
Everdisplay Optronics (Shanghai) Co. Ltd., A Shares (China)(b) | | | |
Guangzhou Shiyuan Electronic Technology Co. Ltd., A Shares (China) | | | |
Hengdian Group DMEGC Magnetics Co. Ltd., A Shares (China) | | | |
Huagong Tech Co. Ltd., A Shares (China) | | | |
IRICO Display Devices Co. Ltd. (China)(b) | | | |
Kingboard Laminates Holdings Ltd. (China) | | | |
Lens Technology Co. Ltd., A Shares (China) | | | |
Leyard Optoelectronic Co. Ltd., A Shares (China) | | | |
Lingyi iTech Guangdong Co., A Shares (China) | | | |
Maxscend Microelectronics Co. Ltd., A Shares (China) | | | |
Raytron Technology Co. Ltd., A Shares (China) | | | |
Shanghai BOCHU Electronic Technology Corp. Ltd., A Shares (China) | | | |
Shengyi Technology Co. Ltd., A Shares (China) | | | |
Shennan Circuits Co. Ltd., A Shares (China) | | | |
Shenzhen Everwin Precision Technology Co. Ltd., A Shares (China)(b) | | | |
Shenzhen Huaqiang Industry Co. Ltd., A Shares (China) | | | |
Shenzhen Kaifa Technology Co. Ltd., A Shares (China) | | | |
Shenzhen Kinwong Electronic Co. Ltd., A Shares (China) | | | |
| | |
Electronic Equipment, Instruments & Components-(continued) |
Sunny Optical Technology Group Co. Ltd. (China) | | | |
TCL Technology Group Corp., A Shares (China) | | | |
Tianma Microelectronics Co. Ltd., A Shares (China)(b) | | | |
Tunghsu Optoelectronic Technology Co. Ltd., A Shares (China)(b)(c) | | | |
Unisplendour Corp. Ltd., A Shares (China) | | | |
Universal Scientific Industrial Shanghai Co. Ltd., A Shares (China) | | | |
WUS Printed Circuit Kunshan Co. Ltd., A Shares (China) | | | |
Xiamen Faratronic Co. Ltd., A Shares (China) | | | |
Zhejiang Crystal-Optech Co. Ltd., A Shares (China) | | | |
Zhejiang Dahua Technology Co. Ltd., A Shares (China) | | | |
Zhuzhou Hongda Electronics Corp. Ltd., A Shares (China) | | | |
| | | |
|
Hangzhou Shunwang Technology Co. Ltd., A Shares (China) | | | |
Kingsoft Corp. Ltd. (China) | | | |
| | | |
Hotels, Restaurants & Leisure-11.11% |
Meituan, B Shares (China)(b)(d) | | | |
TravelSky Technology Ltd., H Shares (China) | | | |
| | | |
Interactive Media & Services-26.46% |
Autohome, Inc., ADR (China) | | | |
Baidu, Inc., A Shares (China)(b) | | | |
Bilibili, Inc., Z Shares (China)(b) | | | |
JOYY, Inc., ADR (China)(b)(e) | | | |
Kuaishou Technology (China)(b)(d) | | | |
Tencent Holdings Ltd. (China) | | | |
Visual China Group Co. Ltd., A Shares (China) | | | |
Weibo Corp., ADR (China)(e) | | | |
| | | |
|
Beijing Sinnet Technology Co. Ltd., A Shares (China) | | | |
China TransInfo Technology Co. Ltd., A Shares (China) | | | |
DHC Software Co. Ltd., A Shares (China) | | | |
Digital China Information Service Co. Ltd., A Shares (China) | | | |
GDS Holdings Ltd., A Shares (China)(b) | | | |
iSoftStone Information Technology (Group) Co. Ltd., A Shares (China) | | | |
Taiji Computer Corp. Ltd., A Shares (China) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco China Technology ETF (CQQQ)—(continued)
October 31, 2024
| | |
|
Wangsu Science & Technology Co. Ltd., A Shares (China) | | | |
Wonders Information Co. Ltd., A Shares (China)(b) | | | |
| | | |
|
China Literature Ltd. (China)(b)(d)(e) | | | |
NanJi E-Commerce Co. Ltd., A Shares (China) | | | |
People.cn Co. Ltd., A Shares (China) | | | |
| | | |
Semiconductors & Semiconductor Equipment-18.70% |
3Peak, Inc., A Shares (China)(b) | | | |
ACM Research (Shanghai), Inc., A Shares (China) | | | |
Advanced Micro-Fabrication Equipment, Inc., A Shares (China) | | | |
All Winner Technology Co. Ltd., A Shares (China) | | | |
Amlogic Shanghai Co. Ltd., A Shares (China) | | | |
ASR Microelectronics Co. Ltd., A Shares (China)(b) | | | |
Bestechnic (Shanghai) Co. Ltd. (China) | | | |
Cambricon Technologies Corp. Ltd. (China)(b) | | | |
China Resources Microelectronics Ltd., A Shares (China) | | | |
GalaxyCore, Inc., A Shares (China) | | | |
GigaDevice Semiconductor, Inc., A Shares (China)(b) | | | |
Goke Microelectronics Co. Ltd., A Shares (China) | | | |
Guobo Electronics Co. Ltd., A Shares (China) | | | |
Hangzhou Chang Chuan Technology Co. Ltd., A Shares (China) | | | |
Hangzhou Lion Microelectronics Co. Ltd., A Shares (China) | | | |
Hangzhou Silan Microelectronics Co. Ltd., A Shares (China)(b) | | | |
Hoyuan Green Energy Co. Ltd., A Shares (China) | | | |
Hua Hong Semiconductor Ltd. (China)(d)(e) | | | |
Hwatsing Technology Co. Ltd., A Shares (China) | | | |
Hygon Information Technology Co. Ltd., A Shares (China) | | | |
Ingenic Semiconductor Co. Ltd., A Shares (China) | | | |
JCET Group Co. Ltd., A Shares (China) | | | |
Jiangsu Pacific Quartz Co. Ltd., A Shares (China) | | | |
Loongson Technology Corp. Ltd., A Shares (China)(b) | | | |
Montage Technology Co. Ltd., A Shares (China) | | | |
National Silicon Industry Group Co. Ltd., A Shares (China) | | | |
| | |
Semiconductors & Semiconductor Equipment-(continued) |
NAURA Technology Group Co. Ltd., A Shares (China) | | | |
Nexchip Semiconductor Corp., A Shares (China)(b) | | | |
Piotech, Inc., A Shares (China) | | | |
Rockchip Electronics Co. Ltd., A Shares (China) | | | |
Sanan Optoelectronics Co. Ltd., A Shares (China) | | | |
SG Micro Corp., A Shares (China) | | | |
Shanghai Awinic Technology Co. Ltd., A Shares (China) | | | |
Shanghai Fudan Microelectronics Group Co. Ltd., A Shares (China) | | | |
Shanghai Fudan Microelectronics Group Co. Ltd., H Shares (China)(e) | | | |
Shenzhen Goodix Technology Co. Ltd., A Shares (China) | | | |
Shenzhen SC New Energy Technology Corp., A Shares (China) | | | |
SICC Co. Ltd., A Shares (China)(b) | | | |
StarPower Semiconductor Ltd., A Shares (China) | | | |
Suzhou Novosense Microelectronics Co. Ltd., A Shares (China)(b) | | | |
Tianshui Huatian Technology Co. Ltd., A Shares (China) | | | |
TongFu Microelectronics Co. Ltd., A Shares (China) | | | |
Unigroup Guoxin Microelectronics Co. Ltd., A Shares (China) | | | |
United Nova Technology Co. Ltd., A Shares (China)(b) | | | |
Vanchip (Tianjin) Technology Co. Ltd., A Shares (China) | | | |
Verisilicon Microelectronics (Shanghai) Co. Ltd. (China)(b) | | | |
Will Semiconductor Co. Ltd., A Shares (China) | | | |
Wuxi Autowell Technology Co. Ltd., A Shares (China) | | | |
Yangzhou Yangjie Electronic Technology Co. Ltd., A Shares (China) | | | |
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A Shares (China) | | | |
| | | |
|
360 Security Technology, Inc., A Shares (China) | | | |
Beijing E-Hualu Information Technology Co. Ltd., A Shares (China)(b) | | | |
Beijing Kingsoft Office Software, Inc., A Shares (China) | | | |
Beijing Orient National Communication Science & Technology Co. Ltd., A Shares (China)(b) | | | |
Beijing Shiji Information Technology Co. Ltd., A Shares (China) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco China Technology ETF (CQQQ)—(continued)
October 31, 2024
| | |
|
China National Software & Service Co. Ltd., A Shares (China)(b) | | | |
Empyrean Technology Co. Ltd., A Shares (China) | | | |
Hundsun Technologies, Inc., A Shares (China) | | | |
Iflytek Co. Ltd., A Shares (China) | | | |
Kingdee International Software Group Co. Ltd. (China)(b) | | | |
Longshine Technology Group Co. Ltd., A Shares (China) | | | |
Neusoft Corp., A Shares (China) | | | |
Newland Digital Technology Co. Ltd., A Shares (China) | | | |
Qi An Xin Technology Group, Inc. (China)(b) | | | |
Sangfor Technologies, Inc., A Shares (China) | | | |
SenseTime Group, Inc., B Shares (China)(b)(d)(e) | | | |
Shanghai Baosight Software Co. Ltd., A Shares (China) | | | |
Shanghai Baosight Software Co. Ltd., B Shares (China) | | | |
Shanghai Stonehill Technology Co. Ltd., A Shares (China) | | | |
Shenzhen Infogem Technologies Co. Ltd., A Shares (China)(b) | | | |
Shenzhen Kingdom Sci-Tech Co. Ltd., A Shares (China) | | | |
Sinosoft Co. Ltd., A Shares (China) | | | |
Thunder Software Technology Co. Ltd., A Shares (China) | | | |
Topsec Technologies Group, Inc., A Shares (China) | | | |
Yonyou Network Technology Co. Ltd., A Shares (China)(b) | | | |
| | | |
Technology Hardware, Storage & Peripherals-2.16% |
China Greatwall Technology Group Co. Ltd., A Shares (China)(b) | | | |
GRG Banking Equipment Co. Ltd., A Shares (China) | | | |
IEIT Systems Co. Ltd., A Shares (China) | | | |
| | |
Technology Hardware, Storage & Peripherals-(continued) |
Legend Holdings Corp., H Shares (China)(b)(d)(e) | | | |
Ninestar Corp., A Shares (China)(b) | | | |
Shenzhen Longsys Electronics Co. Ltd., A Shares (China) | | | |
Tsinghua Tongfang Co. Ltd., A Shares (China)(b) | | | |
| | | |
Textiles, Apparel & Luxury Goods-0.43% |
Shijiazhuang Changshan BeiMing Technology Co. Ltd., A Shares (China)(b) | | | |
Trading Companies & Distributors-0.14% |
Beijing United Information Technology Co. Ltd., A Shares (China) | | | |
Total Common Stocks & Other Equity Interests (Cost $686,833,109) | |
|
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(f)(g) (Cost $319,705) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.04% (Cost $687,152,814) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(f)(g)(h) | | | |
Invesco Private Prime Fund, 4.99%(f)(g)(h) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $29,617,236) | |
TOTAL INVESTMENTS IN SECURITIES-103.90% (Cost $716,770,050) | |
OTHER ASSETS LESS LIABILITIES-(3.90)% | |
| |
Investment Abbreviations: |
| -American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco China Technology ETF (CQQQ)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| 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. |
| Non-income producing security. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $167,354,744, which represented 21.81% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
This Fund has holdings greater than 10% of net assets in the following country: |
| |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.90% |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
Bombardier, Inc., Class B(b) | | | |
| | | |
CCL Industries, Inc., Class B | | | |
Constellation Software, Inc. | | | |
Descartes Systems Group, Inc. (The)(b) | | | |
| | | |
Element Fleet Management Corp. | | | |
Fairfax Financial Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Yangzijiang Shipbuilding Holdings Ltd. | | | |
|
Novo Nordisk A/S, Class B | | | |
Ringkjoebing Landbobank A/S | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | | | |
| | | |
| | | |
Siemens Energy AG, Class A(b) | | | |
| | | |
| | | |
| | |
|
National Bank of Greece S.A. | | | |
Piraeus Financial Holdings S.A. | | | |
| | | |
|
| | | |
Bank of Ireland Group PLC | | | |
| | | |
|
Mizrahi Tefahot Bank Ltd. | | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
Cosmo Energy Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Heavy Industries Ltd. | | | |
| | | |
Sumitomo Forestry Co. Ltd.(a) | | | |
Tokio Marine Holdings, Inc. | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
Oversea-Chinese Banking Corp. Ltd. | | | |
|
| | | |
| | | |
Hanwha Aerospace Co. Ltd. | | | |
Meritz Financial Group, Inc. | | | |
| | | |
|
| | | |
|
Assa Abloy AB, Class B(a) | | | |
| | | |
Industrivarden AB, Class A | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
Partners Group Holding AG | | | |
Schindler Holding AG, PC(a) | | | |
| | | |
| | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
Intermediate Capital Group PLC | | | |
Marks & Spencer Group PLC | | | |
| | | |
| | | |
| | | |
Rolls-Royce Holdings PLC(b) | | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.90% (Cost $113,688,807) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(c)(d)(e) | | | |
Invesco Private Prime Fund, 4.99%(c)(d)(e) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $6,624,306) | |
TOTAL INVESTMENTS IN SECURITIES-104.76% (Cost $120,313,113) | |
OTHER ASSETS LESS LIABILITIES-(4.76)% | |
| |
Investment Abbreviations: |
PC-Participation Certificate |
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)—(continued)
October 31, 2024
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.92% |
|
BB Seguridade Participacoes S.A. | | | |
| | | |
Cia Energetica de Minas Gerais, Preference Shares | | | |
| | | |
| | | |
Marcopolo S.A., Preference Shares | | | |
NU Holdings Ltd., Class A(a) | | | |
| | | |
Santos Brasil Participacoes S.A. | | | |
| | | |
|
China Coal Energy Co. Ltd., H Shares | | | |
China Petroleum & Chemical Corp., H Shares | | | |
China Shenhua Energy Co. Ltd., H Shares | | | |
China State Construction International Holdings Ltd. | | | |
GDS Holdings Ltd., A Shares(a)(b) | | | |
Pop Mart International Group Ltd.(c) | | | |
Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd.(a) | | | |
Sinopec Engineering Group Co. Ltd., H Shares | | | |
| | | |
| | | |
|
Magyar Telekom Telecommunications PLC | | | |
| | | |
| | | |
|
PT Bank Mandiri (Persero) Tbk | | | |
|
Alliance Bank Malaysia Bhd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Gruma S.A.B. de C.V., Class B | | | |
Grupo Comercial Chedraui S.A. de C.V. | | | |
| | | |
|
| | | |
| | |
|
International Container Terminal Services, Inc. | | | |
Metropolitan Bank & Trust Co. | | | |
| | | |
|
Bidvest Group Ltd. (The)(b) | | | |
Capitec Bank Holdings Ltd. | | | |
| | | |
| | | |
Harmony Gold Mining Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Truworths International Ltd. | | | |
| | | |
|
| | | |
| | | |
| | | |
Charoen Pokphand Enterprise (Taiwan) Co. Ltd. | | | |
| | | |
| | | |
Depo Auto Parts Ind. Co. Ltd. | | | |
Everlight Electronics Co. Ltd.(a) | | | |
First Financial Holding Co. Ltd. | | | |
Foxsemicon Integrated Technology, Inc. | | | |
Fubon Financial Holding Co. Ltd. | | | |
Fusheng Precision Co. Ltd. | | | |
Goldsun Building Materials Co. Ltd. | | | |
IBF Financial Holdings Co. Ltd. | | | |
Jentech Precision Industrial Co. Ltd. | | | |
Kaori Heat Treatment Co. Ltd. | | | |
KGI Financial Holding Co. Ltd. | | | |
King Slide Works Co. Ltd. | | | |
| | | |
| | | |
Lien Hwa Industrial Holdings Corp. | | | |
Mega Financial Holding Co. Ltd. | | | |
| | | |
President Securities Corp. | | | |
Radiant Opto-Electronics Corp. | | | |
Run Long Construction Co. Ltd. | | | |
Shiny Chemical Industrial Co. Ltd. | | | |
SinoPac Financial Holdings Co. Ltd. | | | |
| | | |
Taichung Commercial Bank Co. Ltd. | | | |
Taishin Financial Holding Co. Ltd. | | | |
| | | |
Taiwan Hon Chuan Enterprise Co. Ltd. | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
Tong Yang Industry Co. Ltd. | | | |
Topco Scientific Co. Ltd.(a) | | | |
Tung Ho Steel Enterprise Corp. | | | |
United Microelectronics Corp. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)—(continued)
October 31, 2024
| | |
|
WinWay Technology Co. Ltd. | | | |
| | | |
Yuanta Financial Holding Co. Ltd. | | | |
| | | |
|
| | | |
| | | |
| | | |
Krung Thai Bank PCL, NVDR | | | |
| | | |
Thanachart Capital PCL, NVDR | | | |
| | | |
| | | |
| | | |
|
BIM Birlesik Magazalar A.S. | | | |
Pegasus Hava Tasimaciligi A.S.(a) | | | |
TAV Havalimanlari Holding A.S.(a) | | | |
| | | |
|
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.92% (Cost $113,419,179) | |
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $1,821,781) | |
TOTAL INVESTMENTS IN SECURITIES-101.40% (Cost $115,240,960) | |
OTHER ASSETS LESS LIABILITIES-(1.40)% | |
| |
Investment Abbreviations: |
NVDR-Non-Voting Depositary Receipt |
Notes to Schedule of Investments: |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| 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 October 31, 2024 represented 1.27% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)—(continued)
October 31, 2024
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.60% |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bank of Queensland Ltd.(a) | | | |
Bendigo & Adelaide Bank Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Commonwealth Bank of Australia | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Insurance Australia Group Ltd.(a) | | | |
James Hardie Industries PLC, CDI(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mineral Resources Ltd.(a) | | | |
| | | |
National Australia Bank Ltd. | | | |
Northern Star Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ramsay Health Care Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Treasury Wine Estates Ltd.(a) | | | |
| | | |
Viva Energy Group Ltd.(c) | | | |
Washington H Soul Pattinson & Co. Ltd.(a) | | | |
| | | |
| | | |
| | |
|
| | | |
Woodside Energy Group Ltd.(a) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Raiffeisen Bank International AG | | | |
| | | |
| | | |
| | | |
|
| | | |
Anheuser-Busch InBev S.A./N.V.(a) | | | |
| | | |
| | | |
| | | |
Groupe Bruxelles Lambert N.V. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Wheaton Precious Metals Corp.(a) | | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
Algonquin Power & Utilities Corp.(a) | | | |
Alimentation Couche-Tard, Inc. | | | |
Allied Properties REIT(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bank of Nova Scotia (The) | | | |
| | | |
| | | |
Bombardier, Inc., Class B(b) | | | |
| | | |
| | | |
| | | |
Canadian Apartment Properties REIT(a) | | | |
Canadian Imperial Bank of Commerce | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
Canadian National Railway Co. | | | |
Canadian Natural Resources Ltd.(a) | | | |
Canadian Pacific Kansas City Ltd.(a) | | | |
Canadian Tire Corp. Ltd., Class A(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Constellation Software, Inc. | | | |
| | | |
Element Fleet Management Corp. | | | |
| | | |
| | | |
Fairfax Financial Holdings Ltd. | | | |
Finning International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Magna International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Restaurant Brands International, Inc. | | | |
| | | |
| | | |
| | | |
Shopify, Inc., Class A(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Teck Resources Ltd., Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
Toronto-Dominion Bank (The) | | | |
| | | |
| | | |
Vermilion Energy, Inc.(a) | | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
BOC Hong Kong (Holdings) Ltd. | | | |
| | | |
| | | |
SITC International Holdings Co. Ltd. | | | |
Wilmar International Ltd. | | | |
Xinyi Glass Holdings Ltd.(a) | | | |
| | | |
|
A.P. Moller - Maersk A/S, Class A(a) | | | |
A.P. Moller - Maersk A/S, Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Novo Nordisk A/S, Class B | | | |
| | | |
| | | |
| | | |
| | | |
Vestas Wind Systems A/S(b) | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Stora Enso OYJ, Class R(a) | | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
| | | |
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|
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| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cie Generale des Etablissements Michelin S.C.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hermes International S.C.A. | | | |
| | | |
| | | |
| | | |
| | | |
LVMH Moet Hennessy Louis Vuitton SE | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
| | | |
Ubisoft Entertainment S.A.(a)(b) | | | |
| | |
|
Unibail-Rodamco-Westfield SE(a) | | | |
| | | |
Veolia Environnement S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG(a) | | | |
Bayerische Motoren Werke AG, Preference Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fresenius Medical Care AG | | | |
Fresenius SE & Co. KGaA(b) | | | |
| | | |
FUCHS SE, Preference Shares(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Henkel AG & Co. KGaA, Preference Shares(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen, Class R | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
Siemens Energy AG, Class A(b) | | | |
Siemens Healthineers AG(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Volkswagen AG, Preference Shares | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
CK Hutchison Holdings Ltd. | | | |
| | | |
| | | |
Henderson Land Development Co. Ltd. | | | |
Hong Kong & China Gas Co. Ltd. (The) | | | |
Hong Kong Exchanges & Clearing Ltd. | | | |
Jardine Matheson Holdings Ltd. | | | |
| | | |
| | | |
New World Development Co. Ltd.(a) | | | |
Orient Overseas International Ltd. | | | |
Power Assets Holdings Ltd. | | | |
| | | |
Sun Hung Kai Properties Ltd. | | | |
Swire Pacific Ltd., Class A | | | |
Swire Pacific Ltd., Class B | | | |
Techtronic Industries Co. Ltd. | | | |
| | | |
Wharf Real Estate Investment Co. Ltd. | | | |
| | | |
|
| | | |
Bank of Ireland Group PLC | | | |
Flutter Entertainment PLC(a)(b) | | | |
| | | |
| | | |
| | | |
|
| | | |
Bank Leumi le-Israel B.M. | | | |
| | | |
Israel Discount Bank Ltd., Class A | | | |
Mizrahi Tefahot Bank Ltd. | | | |
| | | |
Teva Pharmaceutical Industries Ltd.(a)(b) | | | |
Tower Semiconductor Ltd.(a)(b) | | | |
| | | |
| | |
|
| | | |
Assicurazioni Generali S.p.A. | | | |
| | | |
Banca Monte dei Paschi di Siena S.p.A. | | | |
Banca Popolare di Sondrio S.p.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
FinecoBank Banca Fineco S.p.A.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mediobanca Banca di Credito Finanziario S.p.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Telecom Italia S.p.A.(a)(b) | | | |
Telecom Italia S.p.A., RSP(a)(b) | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Asahi Group Holdings Ltd. | | | |
| | | |
| | | |
Bandai Namco Holdings, Inc. | | | |
| | | |
Brother Industries Ltd.(a) | | | |
| | | |
Central Japan Railway Co. | | | |
| | | |
Chubu Electric Power Co., Inc. | | | |
Chugai Pharmaceutical Co. Ltd. | | | |
Chugoku Electric Power Co., Inc. (The) | | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | |
Concordia Financial Group Ltd. | | | |
Cosmo Energy Holdings Co. Ltd. | | | |
| | | |
| | | |
Dai Nippon Printing Co. Ltd. | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
| | | |
Dai-ichi Life Holdings, Inc. | | | |
| | | |
| | | |
Daito Trust Construction Co. Ltd. | | | |
Daiwa House Industry Co. Ltd. | | | |
Daiwa House REIT Investment Corp. | | | |
Daiwa Securities Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Electric Power Development Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fukuoka Financial Group, Inc. | | | |
Furukawa Electric Co. Ltd. | | | |
| | | |
Hakuhodo DY Holdings, Inc. | | | |
Hankyu Hanshin Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Hitachi Construction Machinery Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Iida Group Holdings Co. Ltd. | | | |
| | | |
Isetan Mitsukoshi Holdings Ltd.(a) | | | |
| | | |
| | | |
| | | |
J. Front Retailing Co. Ltd. | | | |
| | | |
Japan Exchange Group, Inc. | | | |
Japan Metropolitan Fund Investment Corp. | | | |
Japan Post Bank Co. Ltd.(a) | | | |
Japan Post Holdings Co. Ltd. | | | |
Japan Post Insurance Co. Ltd. | | | |
Japan Real Estate Investment Corp.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kansai Electric Power Co., Inc. (The) | | | |
| | | |
| | | |
| | |
|
Kawasaki Heavy Industries Ltd. | | | |
Kawasaki Kisen Kaisha Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Kintetsu Group Holdings Co. Ltd. | | | |
Kirin Holdings Co. Ltd.(a) | | | |
| | | |
Koito Manufacturing Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kurita Water Industries Ltd. | | | |
| | | |
Kyoto Financial Group, Inc.(a) | | | |
| | | |
Kyushu Electric Power Co., Inc. | | | |
Kyushu Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mebuki Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
Mitsubishi Chemical Group Corp. | | | |
| | | |
Mitsubishi Electric Corp. | | | |
Mitsubishi Estate Co. Ltd. | | | |
Mitsubishi Gas Chemical Co., Inc. | | | |
Mitsubishi HC Capital, Inc. | | | |
Mitsubishi Heavy Industries Ltd. | | | |
Mitsubishi Materials Corp. | | | |
| | | |
Mitsubishi UFJ Financial Group, Inc. | | | |
| | | |
Mitsui Chemicals, Inc.(a) | | | |
| | | |
Mitsui Mining & Smelting Co. Ltd. | | | |
| | | |
Mizuho Financial Group, Inc. | | | |
MS&AD Insurance Group Holdings, Inc. | | | |
Murata Manufacturing Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
| | | |
Nippon Building Fund, Inc.(a) | | | |
Nippon Electric Glass Co. Ltd.(a) | | | |
Nippon Express Holdings, Inc. | | | |
Nippon Paint Holdings Co. Ltd.(a) | | | |
Nippon Prologis REIT, Inc. | | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
Nippon Telegraph & Telephone Corp. | | | |
| | | |
| | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
Nissin Foods Holdings Co. Ltd.(a) | | | |
| | | |
Nitori Holdings Co. Ltd.(a) | | | |
| | | |
| | | |
Nomura Real Estate Holdings, Inc. | | | |
Nomura Real Estate Master Fund, Inc. | | | |
Nomura Research Institute Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Odakyu Electric Railway Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
Ono Pharmaceutical Co. Ltd. | | | |
Open House Group Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pan Pacific International Holdings Corp. | | | |
| | | |
| | | |
Rakuten Group, Inc.(a)(b) | | | |
Recruit Holdings Co. Ltd. | | | |
Renesas Electronics Corp. | | | |
| | | |
Resonac Holdings Corp.(a) | | | |
| | | |
| | | |
| | | |
Santen Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
SCREEN Holdings Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
Seino Holdings Co. Ltd.(a) | | | |
Sekisui Chemical Co. Ltd. | | | |
| | | |
Seven & i Holdings Co. Ltd. | | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
Shin-Etsu Chemical Co. Ltd. | | | |
| | | |
| | | |
Shizuoka Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Stanley Electric Co. Ltd. | | | |
| | | |
| | | |
Sumitomo Chemical Co. Ltd. | | | |
| | | |
Sumitomo Electric Industries Ltd. | | | |
Sumitomo Forestry Co. Ltd.(a) | | | |
Sumitomo Heavy Industries Ltd. | | | |
Sumitomo Metal Mining Co. Ltd.(a) | | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | |
Sumitomo Realty & Development Co. Ltd. | | | |
Sumitomo Rubber Industries Ltd. | | | |
Suntory Beverage & Food Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Takeda Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tohoku Electric Power Co., Inc. | | | |
| | | |
Tokio Marine Holdings, Inc. | | | |
Tokyo Electric Power Co. Holdings, Inc.(b) | | | |
| | | |
| | | |
Tokyo Tatemono Co. Ltd.(a) | | | |
| | | |
Tokyu Fudosan Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
Tsuruha Holdings, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yaskawa Electric Corp.(a) | | | |
| | | |
Yokohama Rubber Co. Ltd. (The) | | | |
| | | |
|
Hikma Pharmaceuticals PLC | | | |
|
| | | |
| | | |
| | | |
| | | |
|
Galaxy Entertainment Group Ltd. | | | |
| | | |
| | | |
|
| | | |
ABN AMRO Bank N.V., CVA(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BE Semiconductor Industries N.V.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Koninklijke Ahold Delhaize N.V. | | | |
| | | |
Koninklijke Philips N.V.(b) | | | |
| | | |
| | | |
| | | |
| | | |
Universal Music Group N.V.(a) | | | |
| | | |
| | | |
|
Fisher & Paykel Healthcare Corp. Ltd. | | | |
|
| | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Bank Polska Kasa Opieki S.A. | | | |
| | | |
| | | |
Powszechna Kasa Oszczednosci Bank Polski S.A. | | | |
Powszechny Zaklad Ubezpieczen S.A. | | | |
| | | |
|
Banco Comercial Portugues S.A., Class R | | | |
| | | |
| | | |
Jeronimo Martins SGPS S.A. | | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
CapitaLand Integrated Commercial Trust | | | |
CapitaLand Investment Ltd. | | | |
| | | |
| | | |
| | | |
Mapletree Logistics Trust | | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
Singapore Airlines Ltd.(a) | | | |
| | | |
Singapore Technologies Engineering Ltd. | | | |
Singapore Telecommunications Ltd. | | | |
| | | |
United Overseas Bank Ltd. | | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
Doosan Enerbility Co. Ltd.(b) | | | |
Hana Financial Group, Inc. | | | |
Hankook Tire & Technology Co. Ltd. | | | |
| | | |
| | | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd.(b) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
Hyundai Engineering & Construction Co. Ltd. | | | |
| | | |
| | | |
Hyundai Motor Co., First Pfd. | | | |
Hyundai Motor Co., Second Pfd. | | | |
| | | |
| | | |
| | | |
| | | |
Korea Electric Power Corp.(b) | | | |
| | | |
Korean Air Lines Co. Ltd. | | | |
| | | |
| | | |
LG Chem Ltd., Preference Shares | | | |
| | | |
| | | |
| | | |
LG Electronics, Inc., Preference Shares | | | |
LG Energy Solution Ltd.(b) | | | |
| | | |
LG H&H Co. Ltd., Preference Shares | | | |
| | | |
| | | |
| | | |
Meritz Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
Posco International Corp. | | | |
| | | |
| | | |
Samsung Electro-Mechanics Co. Ltd.(a) | | | |
Samsung Electronics Co. Ltd. | | | |
Samsung Electronics Co. Ltd., Preference Shares | | | |
Samsung Fire & Marine Insurance Co. Ltd. | | | |
Samsung Fire & Marine Insurance Co. Ltd., Preference Shares | | | |
Samsung Heavy Industries Co. Ltd.(b) | | | |
Samsung Life Insurance Co. Ltd. | | | |
| | | |
Samsung SDI Co. Ltd., Preference Shares | | | |
| | | |
Shinhan Financial Group Co. Ltd. | | | |
| | | |
SK Innovation Co. Ltd.(b) | | | |
| | | |
| | | |
Woori Financial Group, Inc. | | | |
| | | |
|
| | | |
| | | |
ACS Actividades de Construccion y Servicios S.A. | | | |
| | | |
| | | |
| | |
|
Banco Bilbao Vizcaya Argentaria S.A.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Cellnex Telecom S.A.(a)(c) | | | |
| | | |
| | | |
| | | |
Grifols S.A., Class B, Preference Shares(b) | | | |
| | | |
Industria de Diseno Textil S.A.(a) | | | |
| | | |
| | | |
Merlin Properties SOCIMI S.A. | | | |
Naturgy Energy Group S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Electrolux AB, Class B(a)(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fastighets AB Balder, Class B(a)(b) | | | |
| | | |
H & M Hennes & Mauritz AB, Class B(a) | | | |
| | | |
| | | |
| | | |
Industrivarden AB, Class A | | | |
Industrivarden AB, Class C(a) | | | |
| | | |
| | | |
Kinnevik AB, Class B(a)(b) | | | |
NIBE Industrier AB, Class B(a) | | | |
| | | |
| | | |
| | | |
Skandinaviska Enskilda Banken AB, Class A | | | |
Skandinaviska Enskilda Banken AB, Class C | | | |
| | | |
| | | |
| | | |
| | | |
Svenska Cellulosa AB S.C.A., Class B(a) | | | |
Svenska Handelsbanken AB, Class A | | | |
Svenska Handelsbanken AB, Class B(a) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
|
| | | |
Telefonaktiebolaget LM Ericsson, Class B | | | |
| | | |
| | | |
| | | |
| | | |
Volvo Car AB, Class B(a)(b) | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Chocoladefabriken Lindt & Spruengli AG | | | |
Chocoladefabriken Lindt & Spruengli AG, PC(a) | | | |
Cie Financiere Richemont S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kuehne + Nagel International AG, Class R(a) | | | |
Logitech International S.A., Class R | | | |
| | | |
| | | |
| | | |
Partners Group Holding AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sonova Holding AG, Class A | | | |
| | | |
Swatch Group AG (The), BR(a) | | | |
| | | |
| | | |
| | | |
| | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | |
United Kingdom-(continued) |
Associated British Foods PLC | | | |
| | | |
| | | |
B&M European Value Retail S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Berkeley Group Holdings PLC (The) | | | |
British American Tobacco PLC | | | |
British Land Co. PLC (The) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Direct Line Insurance Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
Intermediate Capital Group PLC | | | |
International Consolidated Airlines Group S.A.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Just Eat Takeaway.com N.V.(a)(b)(c) | | | |
| | | |
Land Securities Group PLC | | | |
Legal & General Group PLC(a) | | | |
| | | |
London Stock Exchange Group PLC | | | |
| | | |
| | | |
Marks & Spencer Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
| | |
United Kingdom-(continued) |
| | | |
Phoenix Group Holdings PLC | | | |
Reckitt Benckiser Group PLC | | | |
| | | |
| | | |
Rolls-Royce Holdings PLC(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Utilities Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
Bausch Health Cos., Inc.(b) | | | |
| | | |
Brookfield Renewable Corp., Class A | | | |
| | | |
| | |
United States-(continued) |
| | | |
Ferguson Enterprises, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
First Quantum Minerals Ltd.(b) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.60% (Cost $1,433,947,238) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $135,754,334) | |
TOTAL INVESTMENTS IN SECURITIES-107.60% (Cost $1,569,701,572) | |
OTHER ASSETS LESS LIABILITIES-(7.60)% | |
| |
Investment Abbreviations: |
|
CDI-CREST Depository Interest |
|
PC-Participation Certificate |
|
REIT-Real Estate Investment Trust |
RSP-Registered Savings Plan Shares |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $14,829,406, which represented less than 1% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.70% |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Charter Hall Long Wale REIT(a) | | | |
| | | |
Cleanaway Waste Management Ltd. | | | |
| | | |
| | | |
Coronado Global Resources, Inc., CDI(a)(b) | | | |
Corporate Travel Management Ltd. | | | |
| | | |
| | | |
| | | |
Domino’s Pizza Enterprises Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Flight Centre Travel Group Ltd.(a) | | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
Harvey Norman Holdings Ltd.(a) | | | |
| | | |
| | | |
HomeCo Daily Needs REIT(b) | | | |
| | | |
| | | |
| | | |
Ingenia Communities Group | | | |
| | | |
Insignia Financial Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lynas Rare Earths Ltd.(a)(c) | | | |
Magellan Financial Group Ltd.(a) | | | |
McMillan Shakespeare Ltd. | | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
| | | |
Nine Entertainment Co. Holdings Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pilbara Minerals Ltd.(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Regis Resources Ltd.(a)(c) | | | |
| | | |
Sandfire Resources Ltd.(c) | | | |
| | | |
Seven Group Holdings Ltd. | | | |
| | | |
| | | |
Star Entertainment Group Ltd. (The)(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ventia Services Group Pty. Ltd. | | | |
| | | |
WEB Travel Group Ltd.(a)(c) | | | |
| | | |
West African Resources Ltd.(c) | | | |
| | | |
| | | |
| | | |
|
AT&S Austria Technologie & Systemtechnik AG(a)(c) | | | |
CA Immobilien Anlagen AG(a) | | | |
| | | |
| | | |
| | | |
| | | |
Schoeller-Bleckmann Oilfield Equipment AG | | | |
| | | |
| | | |
| | | |
| | | |
|
Ackermans & van Haaren N.V. | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shurgard Self Storage Ltd.(a) | | | |
| | | |
| | | |
Warehouses De Pauw C.V.A.(a) | | | |
Xior Student Housing N.V.(a)(b) | | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
| | | |
Ag Growth International, Inc. | | | |
Alamos Gold, Inc., Class A(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Badger Infrastructure Solutions Ltd. | | | |
Ballard Power Systems, Inc.(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Boyd Group Services, Inc. | | | |
Brookfield Asset Management Ltd., Class A | | | |
Brookfield Business Corp., Class A | | | |
Brookfield Infrastructure Corp., Class A | | | |
| | | |
Canada Goose Holdings, Inc.(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
CES Energy Solutions Corp. | | | |
Chartwell Retirement Residences | | | |
Chemtrade Logistics Income Fund | | | |
| | | |
| | | |
Cogeco Communications, Inc. | | | |
| | | |
| | |
|
Colliers International Group, Inc. | | | |
Converge Technology Solutions Corp. | | | |
| | | |
| | | |
| | | |
dentalcorp Holdings Ltd.(c) | | | |
Descartes Systems Group, Inc. (The)(c) | | | |
| | | |
Dundee Precious Metals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First Majestic Silver Corp. | | | |
| | | |
Fortuna Mining Corp., Class C(c) | | | |
Freehold Royalties Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Innergex Renewable Energy, Inc. | | | |
| | | |
International Petroleum Corp.(c) | | | |
| | | |
Ivanhoe Mines Ltd., Class A(a)(c) | | | |
| | | |
| | | |
Labrador Iron Ore Royalty Corp. | | | |
Laurentian Bank of Canada(a) | | | |
Lightspeed Commerce, Inc.(c) | | | |
| | | |
| | | |
Major Drilling Group International, Inc.(c) | | | |
| | | |
Martinrea International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
North West Co., Inc. (The) | | | |
NorthWest Healthcare Properties REIT(a) | | | |
| | | |
| | | |
| | | |
Osisko Gold Royalties Ltd.(a) | | | |
Pan American Silver Corp. | | | |
Paramount Resources Ltd., Class A | | | |
| | | |
Peyto Exploration & Development Corp.(a) | | | |
| | | |
Precision Drilling Corp.(c) | | | |
Premium Brands Holdings Corp. | | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
Secure Energy Services, Inc. | | | |
Sienna Senior Living, Inc.(a) | | | |
| | | |
Slate Grocery REIT, Class U | | | |
| | | |
| | | |
| | | |
| | | |
Tamarack Valley Energy Ltd. | | | |
| | | |
| | | |
Torex Gold Resources, Inc.(c) | | | |
| | | |
| | | |
Transcontinental, Inc., Class A | | | |
Trican Well Service Ltd.(a) | | | |
Westshore Terminals Investment Corp. | | | |
Whitecap Resources, Inc.(a) | | | |
| | | |
| | | |
|
AAC Technologies Holdings, Inc. | | | |
| | | |
Budweiser Brewing Co. APAC Ltd.(b) | | | |
Chow Tai Fook Jewellery Group Ltd. | | | |
CITIC Telecom International Holdings Ltd. | | | |
| | | |
Jinchuan Group International Resources Co. Ltd. | | | |
| | | |
Nexteer Automotive Group Ltd. | | | |
Powerlong Real Estate Holdings Ltd.(c) | | | |
| | | |
Wharf (Holdings) Ltd. (The) | | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Novonesis (Novozymes) B, Class B | | | |
Ringkjoebing Landbobank A/S | | | |
| | | |
| | |
|
| | | |
Scandinavian Tobacco Group A/S(b) | | | |
| | | |
| | | |
| | | |
|
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|
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|
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| | | |
| | | |
| | | |
Elior Group S.A.(a)(b)(c) | | | |
| | | |
| | | |
Eutelsat Communications SACA(a)(c) | | | |
| | | |
Gaztransport Et Technigaz S.A. | | | |
| | | |
ID Logistics Group SACA(c) | | | |
| | | |
| | | |
| | | |
| | | |
La Francaise des Jeux SAEM(b) | | | |
| | | |
| | | |
Metropole Television S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Television Francaise 1 S.A.(a) | | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
|
Bank of Georgia Group PLC | | | |
| | | |
| | | |
|
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| | | |
| | | |
| | | |
| | | |
| | | |
Carl Zeiss Meditec AG, BR | | | |
CompuGroup Medical SE & Co. KGaA | | | |
CTS Eventim AG & Co. KGaA | | | |
Deutsche Pfandbriefbank AG(b)(c) | | | |
| | | |
| | | |
| | | |
DWS Group GmbH & Co. KGaA(b) | | | |
| | | |
| | | |
| | | |
| | | |
Fraport AG Frankfurt Airport Services Worldwide(c) | | | |
| | | |
Grand City Properties S.A.(c) | | | |
Hamburger Hafen und Logistik AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sartorius AG, Preference Shares(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sixt SE, Preference Shares | | | |
Softwareone Holding AG(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
|
| | | |
Cathay Pacific Airways Ltd.(a) | | | |
CK Infrastructure Holdings Ltd. | | | |
Cowell e Holdings, Inc.(a)(c) | | | |
DFI Retail Group Holdings Ltd. | | | |
Hang Lung Properties Ltd. | | | |
Hongkong Land Holdings Ltd. | | | |
Hysan Development Co. Ltd. | | | |
| | | |
| | | |
Melco International Development Ltd.(a)(c) | | | |
Pacific Basin Shipping Ltd. | | | |
| | | |
| | | |
| | | |
United Energy Group Ltd.(a) | | | |
United Laboratories International Holdings Ltd. (The) | | | |
| | | |
|
| | | |
|
Gulf Keystone Petroleum Ltd. | | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Alony Hetz Properties & Investments Ltd. | | | |
| | | |
| | | |
| | | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | | |
Big Shopping Centers Ltd.(a)(c) | | | |
Clal Insurance Enterprises Holdings Ltd.(c) | | | |
| | | |
| | | |
| | | |
| | | |
Enlight Renewable Energy Ltd.(c) | | | |
Fattal Holdings 1998 Ltd.(c) | | | |
First International Bank of Israel Ltd. (The) | | | |
Harel Insurance Investments & Financial Services Ltd.(a) | | | |
| | | |
| | | |
Mivne Real Estate KD Ltd.(a) | | | |
| | | |
| | | |
| | | |
Phoenix Holdings Ltd. (The) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
Shikun & Binui Ltd.(a)(c) | | | |
| | | |
| | | |
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|
| | | |
| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
Brunello Cucinelli S.p.A.(a) | | | |
| | | |
| | | |
Danieli & C. Officine Meccaniche S.p.A.(a) | | | |
Danieli & C. Officine Meccaniche S.p.A., RSP | | | |
Davide Campari-Milano N.V.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
F.I.L.A - Fabbrica Italiana Lapis ed Affini - S.p.A. | | | |
| | | |
| | | |
Infrastrutture Wireless Italiane S.p.A.(a)(b) | | | |
Interpump Group S.p.A.(a) | | | |
| | | |
| | | |
MFE-MediaForEurope N.V., Class A | | | |
MFE-MediaForEurope N.V., Class B(a) | | | |
| | | |
| | | |
| | | |
Recordati Industria Chimica e Farmaceutica S.p.A. | | | |
| | | |
| | | |
Salvatore Ferragamo S.p.A.(a) | | | |
| | | |
| | | |
| | | |
Webuild S.p.A., Wts., expiring 08/31/2030(c)(d) | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advance Residence Investment Corp. | | | |
AEON Financial Service Co. Ltd. | | | |
| | | |
| | |
|
| | | |
AEON REIT Investment Corp. | | | |
| | | |
| | | |
Aichi Financial Group, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Aoyama Trading Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Autobacs Seven Co. Ltd.(a) | | | |
| | | |
Bank of Nagoya Ltd. (The) | | | |
BayCurrent Consulting, Inc. | | | |
Bell System24 Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Canon Marketing Japan, Inc. | | | |
| | | |
| | | |
| | | |
Chiba Kogyo Bank Ltd. (The) | | | |
| | | |
Chugin Financial Group, Inc. | | | |
Chugoku Marine Paints Ltd. | | | |
| | | |
| | | |
| | | |
Comforia Residential REIT, Inc. | | | |
| | | |
Cosmos Pharmaceutical Corp. | | | |
Create SD Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daishi Hokuetsu Financial Group, Inc. | | | |
Daiwa Office Investment Corp. | | | |
Daiwa Securities Living Investments Corp.(a) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
Daiwabo Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Doutor Nichires Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
DyDo Group Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First Bank of Toyama Ltd. (The)(a) | | | |
| | | |
| | | |
Frontier Real Estate Investment Corp. | | | |
| | | |
| | | |
Fuji Media Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fukuyama Transporting Co. Ltd.(a) | | | |
Futaba Industrial Co. Ltd. | | | |
Fuyo General Lease Co. Ltd. | | | |
| | | |
Global One Real Estate Investment Corp.(a) | | | |
| | | |
| | | |
GMO Payment Gateway, Inc. | | | |
| | | |
| | | |
| | | |
GungHo Online Entertainment, Inc. | | | |
| | | |
| | | |
| | | |
H.U. Group Holdings, Inc. | | | |
| | | |
Hachijuni Bank Ltd. (The) | | | |
Hagiwara Electric Holdings Co. Ltd. | | | |
| | | |
| | | |
| | |
|
| | | |
Harmonic Drive Systems, Inc. | | | |
| | | |
| | | |
Heiwa Real Estate Co. Ltd.(a) | | | |
Heiwa Real Estate REIT, Inc.(a) | | | |
| | | |
| | | |
| | | |
Hisamitsu Pharmaceutical Co., Inc. | | | |
Hokkaido Electric Power Co., Inc. | | | |
Hokkoku Financial Holdings, Inc. | | | |
| | | |
Hokuhoku Financial Group, Inc. | | | |
Hokuriku Electric Power Co. | | | |
| | | |
Hoshino Resorts REIT, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hyakujushi Bank Ltd. (The) | | | |
Ichigo Office REIT Investment Corp.(a) | | | |
| | | |
| | | |
| | | |
Inaba Denki Sangyo Co. Ltd. | | | |
| | | |
Industrial & Infrastructure Fund Investment Corp. | | | |
| | | |
Internet Initiative Japan, Inc. | | | |
Invincible Investment Corp.(a) | | | |
IRISO Electronics Co. Ltd. | | | |
Ishihara Sangyo Kaisha Ltd.(a) | | | |
| | | |
| | | |
Itoham Yonekyu Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Japan Airport Terminal Co. Ltd. | | | |
Japan Aviation Electronics Industry Ltd. | | | |
| | | |
Japan Hotel REIT Investment Corp. | | | |
| | | |
Japan Logistics Fund, Inc. | | | |
Japan Petroleum Exploration Co. Ltd. | | | |
Japan Prime Realty Investment Corp. | | | |
Japan Securities Finance Co. Ltd. | | | |
Japan Steel Works Ltd. (The)(a) | | | |
| | | |
Juroku Financial Group, Inc. | | | |
| | | |
| | | |
Kaga Electronics Co. Ltd. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
Kaken Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
KDX Realty Investment Corp. | | | |
| | | |
| | | |
Keisei Electric Railway Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Kissei Pharmaceutical Co. Ltd.(a) | | | |
Ki-Star Real Estate Co. Ltd.(a) | | | |
Kobayashi Pharmaceutical Co. Ltd.(a) | | | |
| | | |
Koei Tecmo Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
KPP Group Holdings Co. Ltd.(a) | | | |
| | | |
| | | |
Kumiai Chemical Industry Co. Ltd.(a) | | | |
| | | |
Kusuri no Aoki Holdings Co. Ltd.(a) | | | |
| | | |
Kyoritsu Maintenance Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mabuchi Motor Co. Ltd.(a) | | | |
| | | |
Makino Milling Machine Co. Ltd. | | | |
| | | |
| | | |
Maruha Nichiro Corp., Class C | | | |
| | | |
| | | |
Matsui Securities Co. Ltd. | | | |
| | | |
| | | |
McDonald’s Holdings Co. (Japan) Ltd.(a) | | | |
| | | |
| | | |
Megmilk Snow Brand Co. Ltd. | | | |
| | | |
Meiko Electronics Co. Ltd. | | | |
| | |
|
MEITEC Group Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Estate Logistics REIT Investment Corp.(a) | | | |
Mitsubishi Logisnext Co. Ltd.(a) | | | |
Mitsubishi Logistics Corp. | | | |
Mitsubishi Paper Mills Ltd. | | | |
Mitsubishi Shokuhin Co. Ltd. | | | |
| | | |
| | | |
Mitsui Fudosan Logistics Park, Inc.(a) | | | |
| | | |
Mitsui Matsushima Holdings Co. Ltd. | | | |
Mitsui-Soko Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mori Hills REIT Investment Corp. | | | |
| | | |
| | | |
Morinaga Milk Industry Co. Ltd. | | | |
Musashi Seimitsu Industry Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Nankai Electric Railway Co. Ltd. | | | |
| | | |
NEC Networks & System Integration Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nihon M&A Center Holdings, Inc. | | | |
Nikkon Holdings Co. Ltd.(a) | | | |
| | | |
Nippon Accommodations Fund, Inc. | | | |
| | | |
Nippon Chemi-Con Corp.(a)(c) | | | |
| | | |
| | | |
Nippon Light Metal Holdings Co. Ltd. | | | |
Nippon Paper Industries Co. Ltd.(a) | | | |
NIPPON REIT Investment Corp. | | | |
| | | |
Nippon Sheet Glass Co. Ltd.(a)(c) | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
Nippon Yakin Kogyo Co. Ltd. | | | |
| | | |
Nishimatsu Construction Co. Ltd. | | | |
Nishimatsuya Chain Co. Ltd. | | | |
Nishi-Nippon Financial Holdings, Inc. | | | |
Nishi-Nippon Railroad Co. Ltd. | | | |
Nisshin Oillio Group Ltd. (The) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
North Pacific Bank Ltd.(a) | | | |
| | | |
| | | |
NS United Kaiun Kaisha Ltd.(a) | | | |
| | | |
NTT UD REIT Investment Corp.(a) | | | |
| | | |
Ogaki Kyoritsu Bank Ltd. (The) | | | |
| | | |
Okasan Securities Group, Inc. | | | |
Oki Electric Industry Co. Ltd. | | | |
Okinawa Electric Power Co., Inc. (The)(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pacific Industrial Co. Ltd. | | | |
| | | |
| | | |
| | | |
Penta-Ocean Construction Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Pola Orbis Holdings, Inc.(a) | | | |
| | | |
Prima Meat Packers Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ricoh Leasing Co. Ltd.(a) | | | |
| | | |
Rohto Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
| | | |
San-In Godo Bank Ltd. (The) | | | |
Sanken Electric Co. Ltd.(c) | | | |
Sanki Engineering Co. Ltd. | | | |
| | | |
| | | |
| | | |
Sanyo Special Steel Co. Ltd. | | | |
| | | |
Sawai Group Holdings Co. Ltd. | | | |
Sbi Sumishin Net Bank Ltd. | | | |
| | | |
Sega Sammy Holdings, Inc. | | | |
| | | |
| | | |
Sekisui House REIT, Inc.(a) | | | |
Senko Group Holdings Co. Ltd. | | | |
Senshu Ikeda Holdings, Inc. | | | |
| | | |
| | | |
Shibaura Machine Co. Ltd.(a) | | | |
| | | |
Shikoku Electric Power Co., Inc. | | | |
| | | |
Shinko Electric Industries Co. Ltd.(a)(c) | | | |
Shinmaywa Industries Ltd. | | | |
Ship Healthcare Holdings, Inc. | | | |
SHO-BOND Holdings Co. Ltd. | | | |
| | | |
Sinfonia Technology Co. Ltd. | | | |
SKY Perfect JSAT Holdings, Inc. | | | |
Skylark Holdings Co. Ltd.(a) | | | |
| | | |
Sohgo Security Services Co. Ltd. | | | |
SOSiLA Logistics REIT, Inc. | | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
Star Asia Investment Corp. | | | |
Star Micronics Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
Sumitomo Bakelite Co. Ltd. | | | |
Sumitomo Mitsui Construction Co. Ltd. | | | |
Sumitomo Osaka Cement Co. Ltd. | | | |
Sumitomo Pharma Co. Ltd.(a)(c) | | | |
| | | |
Sumitomo Seika Chemicals Co. Ltd. | | | |
Sumitomo Warehouse Co. Ltd. (The) | | | |
Sun Frontier Fudousan Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
Takasago Thermal Engineering Co. Ltd. | | | |
Takeuchi Manufacturing Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Toho Holdings Co. Ltd.(a) | | | |
| | | |
Tokai Tokyo Financial Holdings, Inc.(a) | | | |
| | | |
| | | |
| | | |
Tokyo Electron Device Ltd.(a) | | | |
Tokyo Kiraboshi Financial Group, Inc. | | | |
Tokyo Ohka Kogyo Co. Ltd. | | | |
| | | |
Tokyo Steel Manufacturing Co. Ltd. | | | |
Tokyu Construction Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Towa Pharmaceutical Co. Ltd. | | | |
Toyo Construction Co. Ltd. | | | |
| | | |
Toyo Seikan Group Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tsubaki Nakashima Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Super Markets Holdings, Inc.(a) | | | |
United Urban Investment Corp. | | | |
Universal Entertainment Corp. | | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
Valor Holdings Co. Ltd., Class C | | | |
| | | |
| | | |
| | | |
Warabeya Nichiyo Holdings Co. Ltd. | | | |
| | | |
| | | |
Yamae Group Holdings Co. Ltd.(a) | | | |
Yamaguchi Financial Group, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
Yokogawa Bridge Holdings Corp. | | | |
Yoshinoya Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
Mongolian Mining Corp.(c) | | | |
|
AMG Critical Materials N.V.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurocommercial Properties N.V.(a) | | | |
| | | |
| | | |
| | | |
Koninklijke BAM Groep N.V. | | | |
Koninklijke Vopak N.V.(a) | | | |
| | | |
| | | |
Van Lanschot Kempen N.V., CVA(a) | | | |
| | | |
| | | |
|
a2 Milk Co. Ltd. (The)(a)(c) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
Auckland International Airport Ltd. | | | |
| | | |
Fletcher Building Ltd.(c) | | | |
| | | |
| | | |
| | | |
| | | |
Ryman Healthcare Ltd.(a)(c) | | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
Aker Solutions ASA, Class A | | | |
| | | |
| | | |
Crayon Group Holding ASA(a)(b)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nordic Semiconductor ASA(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SpareBank 1 SR-Bank ASA, Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
Bank Millennium S.A.(a)(c) | | | |
| | | |
| | | |
| | | |
Cyfrowy Polsat S.A.(a)(c) | | | |
Dino Polska S.A.(a)(b)(c) | | | |
| | | |
| | |
|
Jastrzebska Spolka Weglowa S.A.(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
PGE Polska Grupa Energetyczna S.A.(c) | | | |
Santander Bank Polska S.A. | | | |
Tauron Polska Energia S.A.(c) | | | |
| | | |
|
CTT-Correios de Portugal S.A. | | | |
| | | |
| | | |
| | | |
REN - Redes Energeticas Nacionais SGPS S.A. | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
CapitaLand India Trust(a) | | | |
| | | |
| | | |
| | | |
Frasers Centrepoint Trust | | | |
Frasers Logistics & Commercial Trust(b) | | | |
| | | |
Jardine Cycle & Carriage Ltd. | | | |
| | | |
| | | |
Lendlease Global Commercial REIT | | | |
Mapletree Industrial Trust | | | |
Mapletree Pan Asia Commercial Trust | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
Amorepacific Corp., Preference Shares | | | |
| | | |
| | | |
| | | |
| | | |
BNK Financial Group, Inc. | | | |
| | | |
| | | |
Chong Kun Dang Pharmaceutical Corp. | | | |
| | | |
CJ CheilJedang Corp., Preference Shares | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daeduck Electronics Co. Ltd. | | | |
| | | |
Daesang Holdings Co. Ltd. | | | |
Daewoo Engineering & Construction Co. Ltd.(c) | | | |
Daishin Securities Co. Ltd. | | | |
Daishin Securities Co. Ltd., Preference Shares | | | |
| | | |
| | | |
DGB Financial Group, Inc. | | | |
| | | |
| | | |
Dongjin Semichem Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GS Engineering & Construction Corp.(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hanwha Aerospace Co. Ltd. | | | |
| | | |
| | | |
Hanwha Industrial Solutions Co. Ltd.(c) | | | |
Hanwha Investment & Securities Co. Ltd.(c) | | | |
Hanwha Life Insurance Co. Ltd. | | | |
| | | |
| | | |
Harim Holdings Co. Ltd., Class C | | | |
HD Hyundai Construction Equipment Co. Ltd. | | | |
HD Hyundai Electric Co. Ltd. | | | |
HD Hyundai Heavy Industries Co. Ltd.(c) | | | |
HD Hyundai Infracore Co. Ltd.(c) | | | |
HDC Hyundai Development Co-Engineering & Construction, Class E | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hyosung Advanced Materials Corp. | | | |
Hyosung Heavy Industries Corp. | | | |
| | | |
Hyundai Department Store Co. Ltd. | | | |
| | |
|
Hyundai Elevator Co. Ltd. | | | |
| | | |
Hyundai Marine & Fire Insurance Co. Ltd. | | | |
Hyundai Mipo Dockyard Co. Ltd.(c) | | | |
| | | |
| | | |
| | | |
| | | |
JB Financial Group Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
KEPCO Plant Service & Engineering Co. Ltd. | | | |
| | | |
| | | |
| | | |
KIWOOM Securities Co. Ltd. | | | |
| | | |
| | | |
Korea Aerospace Industries Ltd. | | | |
Korea Electric Terminal Co. Ltd. | | | |
| | | |
Korea Investment Holdings Co. Ltd. | | | |
| | | |
Korea Petrochemical Ind Co. Ltd. | | | |
| | | |
| | | |
Kumho Petrochemical Co. Ltd. | | | |
| | | |
| | | |
| | | |
LOTTE Chilsung Beverage Co. Ltd.(a) | | | |
| | | |
LOTTE Fine Chemical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Mirae Asset Securities Co. Ltd. | | | |
| | | |
NH Investment & Securities Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Samsung Biologics Co. Ltd.(b)(c) | | | |
| | | |
Samsung Securities Co. Ltd. | | | |
| | | |
Seah Besteel Holdings Corp. | | | |
Sebang Global Battery Co. Ltd. | | | |
| | | |
Seoul Semiconductor Co. Ltd. | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
SK IE Technology Co. Ltd.(b)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
Atresmedia Corp. de Medios de Comunicacion S.A. | | | |
| | | |
| | | |
Construcciones y Auxiliar de Ferrocarriles S.A. | | | |
Corporacion ACCIONA Energias Renovables S.A.(a) | | | |
| | | |
Ence Energia y Celulosa S.A.(a) | | | |
| | | |
Gestamp Automocion S.A.(b) | | | |
| | | |
Inmobiliaria Colonial SOCIMI S.A.(a) | | | |
Melia Hotels International S.A. | | | |
Obrascon Huarte Lain S.A.(a)(c) | | | |
Prosegur Cia de Seguridad S.A.(a) | | | |
| | | |
Tecnicas Reunidas S.A.(c) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Atrium Ljungberg AB, Class B(a) | | | |
Avanza Bank Holding AB(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cibus Nordic Real Estate AB (publ)(a) | | | |
| | | |
Clas Ohlson AB, Class B(a) | | | |
| | |
|
| | | |
Corem Property Group AB, Class B(a) | | | |
Corem Property Group AB, Preference Shares(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hufvudstaden AB, Class A(a) | | | |
| | | |
| | | |
| | | |
Investment AB Latour, Class B(a) | | | |
| | | |
L E Lundbergforetagen AB, Class B(a) | | | |
Lagercrantz Group AB, Class B | | | |
| | | |
Lindab International AB(a) | | | |
| | | |
Modern Times Group MTG AB, Class B(c) | | | |
| | | |
| | | |
| | | |
| | | |
New Wave Group AB, Class B(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Samhallsbyggnadsbolaget i Norden AB, Class B(a) | | | |
Samhallsbyggnadsbolaget i Norden AB, Class D | | | |
Scandic Hotels Group AB(b)(c) | | | |
Stillfront Group AB(a)(c) | | | |
Storskogen Group AB, Class B(a) | | | |
| | | |
Swedish Orphan Biovitrum AB, Class B(c) | | | |
| | | |
| | | |
Wallenstam AB, Class B(a) | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Banque Cantonale Vaudoise(a) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
Burckhardt Compression Holding AG | | | |
| | | |
| | | |
Daetwyler Holding AG, BR(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
International Workplace Group PLC | | | |
Interroll Holding AG, Class R(a) | | | |
| | | |
Komax Holding AG, Class R(a)(c) | | | |
| | | |
Mobilezone Holding AG(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Swissquote Group Holding S.A. | | | |
Tecan Group AG, Class R(a)(c) | | | |
| | | |
| | | |
| | | |
| | | |
Vontobel Holding AG, Class R(a) | | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
ASOS PLC, (Acquired 03/17/2023; Cost $477,296)(a)(c)(e) | | | |
| | | |
Aston Martin Lagonda Global Holdings PLC(a)(b)(c) | | | |
| | | |
Babcock International Group PLC | | | |
| | | |
| | | |
| | | |
| | |
United Kingdom-(continued) |
| | | |
| | | |
| | | |
| | | |
Close Brothers Group PLC(c) | | | |
| | | |
| | | |
| | | |
Crest Nicholson Holdings PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Games Workshop Group PLC(a) | | | |
| | | |
| | | |
| | | |
| | | |
Great Portland Estates PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
International Distributions Services PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liontrust Asset Management PLC | | | |
LondonMetric Property PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Paragon Banking Group PLC | | | |
Pepco Group N.V.(a)(b)(c) | | | |
Petershill Partners PLC(b) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
| | |
United Kingdom-(continued) |
| | | |
Pinewood Technologies Group PLC | | | |
| | | |
Primary Health Properties PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Spirent Communications PLC(c) | | | |
| | | |
Supermarket Income REIT PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Watches of Switzerland Group PLC(a)(b)(c) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
Diversified Energy Co. PLC(a)(b) | | | |
Galaxy Digital Holdings Ltd., Class H(a)(c) | | | |
GFL Environmental, Inc.(a) | | | |
| | | |
| | | |
| | | |
Reliance Worldwide Corp. Ltd. | | | |
Samsonite International S.A.(b) | | | |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.70% (Cost $401,398,482) | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-15.79% |
Invesco Private Government Fund, 4.84%(f)(g)(h) | | | |
Invesco Private Prime Fund, 4.99%(f)(g)(h) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $63,284,301) | |
TOTAL INVESTMENTS IN SECURITIES-115.49% (Cost $464,682,783) | |
OTHER ASSETS LESS LIABILITIES-(15.49)% | |
| |
Investment Abbreviations: |
|
CDI-CREST Depository Interest |
|
FDR-Fiduciary Depositary Receipt |
|
REIT-Real Estate Investment Trust |
RSP-Registered Savings Plan Shares |
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $18,104,303, which represented 4.52% of the Fund’s Net Assets. |
| Non-income producing security. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Restricted security. The value of this security at October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.96% |
|
| | | |
B3 S.A. - Brasil, Bolsa, Balcao | | | |
| | | |
Banco Bradesco S.A., Preference Shares | | | |
Banco BTG Pactual S.A., Series CPO | | | |
| | | |
Banco Santander Brasil S.A., Series CPO | | | |
Braskem S.A., Class A, Preference Shares(a) | | | |
| | | |
| | | |
Centrais Eletricas Brasileiras S.A. | | | |
Centrais Eletricas Brasileiras S.A., Class B, Preference Shares | | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | | | |
Cia Energetica de Minas Gerais | | | |
Cia Energetica de Minas Gerais, Preference Shares | | | |
Cia Paranaense de Energia | | | |
Cia Paranaense de Energia, Class B, Preference Shares | | | |
Cia Siderurgica Nacional S.A. | | | |
| | | |
| | | |
| | | |
| | | |
Gerdau S.A., Preference Shares | | | |
Hapvida Participacoes e Investimentos S.A.(a)(b) | | | |
Itau Unibanco Holding S.A. | | | |
Itau Unibanco Holding S.A., Preference Shares | | | |
Itausa S.A., Preference Shares | | | |
| | | |
| | | |
| | | |
Marfrig Global Foods S.A.(a) | | | |
Metalurgica Gerdau S.A., Preference Shares | | | |
Natura & Co. Holding S.A. | | | |
| | | |
Petroleo Brasileiro S.A., Preference Shares | | | |
Sendas Distribuidora S.A.(a) | | | |
| | | |
| | | |
| | | |
Ultrapar Participacoes S.A. | | | |
Usinas Siderurgicas de Minas Gerais S.A. Usiminas | | | |
Usinas Siderurgicas de Minas Gerais S.A. Usiminas, Class A, Preference Shares | | | |
| | | |
| | | |
| | | |
| | |
|
Canadian Solar, Inc.(a)(c) | | | |
|
| | | |
| | | |
Sociedad Quimica y Minera de Chile S.A., Class B, Preference Shares | | | |
| | | |
|
Agricultural Bank of China Ltd., A Shares | | | |
Agricultural Bank of China Ltd., H Shares | | | |
Alibaba Group Holding Ltd. | | | |
Aluminum Corp. of China Ltd., A Shares | | | |
Aluminum Corp. of China Ltd., H Shares | | | |
Anhui Conch Cement Co. Ltd., A Shares | | | |
Anhui Conch Cement Co. Ltd., H Shares(c) | | | |
ANTA Sports Products Ltd. | | | |
| | | |
Bank of Beijing Co. Ltd., A Shares | | | |
Bank of China Ltd., A Shares | | | |
Bank of China Ltd., H Shares | | | |
Bank of Communications Co. Ltd., A Shares | | | |
Bank of Communications Co. Ltd., H Shares | | | |
Bank of Shanghai Co. Ltd., A Shares | | | |
Baoshan Iron & Steel Co. Ltd., A Shares | | | |
| | | |
| | | |
CGN Power Co. Ltd., A Shares | | | |
CGN Power Co. Ltd., H Shares(b) | | | |
China CITIC Bank Corp. Ltd., A Shares | | | |
China CITIC Bank Corp. Ltd., H Shares | | | |
China Coal Energy Co. Ltd., A Shares | | | |
China Coal Energy Co. Ltd., H Shares | | | |
China Construction Bank Corp., A Shares | | | |
China Construction Bank Corp., H Shares | | | |
China Energy Engineering Corp. Ltd., A Shares | | | |
China Energy Engineering Corp. Ltd., H Shares | | | |
China Everbright Bank Co. Ltd., A Shares | | | |
China Everbright Bank Co. Ltd., H Shares | | | |
China Everbright Environment Group Ltd.(c) | | | |
China Hongqiao Group Ltd. | | | |
China Life Insurance Co. Ltd., H Shares | | | |
China Mengniu Dairy Co. Ltd. | | | |
China Merchants Bank Co. Ltd., A Shares | | | |
China Merchants Bank Co. Ltd., H Shares | | | |
China Minsheng Banking Corp. Ltd., A Shares | | | |
China Minsheng Banking Corp. Ltd., H Shares(c) | | | |
China Overseas Land & Investment Ltd. | | | |
China Pacific Insurance (Group) Co. Ltd., A Shares | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)—(continued)
October 31, 2024
| | |
|
China Pacific Insurance (Group) Co. Ltd., H Shares | | | |
China Petroleum & Chemical Corp., A Shares | | | |
China Petroleum & Chemical Corp., H Shares | | | |
China Power International Development Ltd. | | | |
China Railway Group Ltd., A Shares | | | |
China Railway Group Ltd., H Shares | | | |
China Resources Beer (Holdings) Co. Ltd.(c) | | | |
China Resources Gas Group Ltd.(c) | | | |
China Resources Land Ltd. | | | |
China Resources Power Holdings Co. Ltd.(c) | | | |
China Shenhua Energy Co. Ltd., A Shares | | | |
China Shenhua Energy Co. Ltd., H Shares | | | |
China State Construction Engineering Corp. Ltd., A Shares | | | |
China Tower Corp. Ltd., H Shares(b) | | | |
China United Network Communications Ltd., A Shares | | | |
China Vanke Co. Ltd., A Shares(a) | | | |
China Vanke Co. Ltd., H Shares(a)(c) | | | |
China Yangtze Power Co. Ltd., A Shares | | | |
Chongqing Rural Commercial Bank Co. Ltd., A Shares | | | |
Chongqing Rural Commercial Bank Co. Ltd., H Shares | | | |
| | | |
CITIC Securities Co. Ltd., A Shares | | | |
CITIC Securities Co. Ltd., H Shares | | | |
COSCO SHIPPING Holdings Co. Ltd., A Shares | | | |
COSCO SHIPPING Holdings Co. Ltd., H Shares | | | |
Country Garden Services Holdings Co. Ltd.(c) | | | |
CRRC Corp. Ltd., A Shares | | | |
CRRC Corp. Ltd., H Shares | | | |
CSPC Pharmaceutical Group Ltd. | | | |
Daqo New Energy Corp., ADR(a)(c) | | | |
| | | |
GCL Technology Holdings Ltd.(a) | | | |
Geely Automobile Holdings Ltd. | | | |
Guangdong Investment Ltd. | | | |
Haier Smart Home Co. Ltd., A Shares | | | |
Haier Smart Home Co. Ltd., H Shares | | | |
Haitong Securities Co. Ltd., A Shares | | | |
Haitong Securities Co. Ltd., H Shares(c) | | | |
Huaneng Power International, Inc., A Shares | | | |
Huaneng Power International, Inc., H Shares(c) | | | |
Huatai Securities Co. Ltd., A Shares | | | |
Huatai Securities Co. Ltd., H Shares(b) | | | |
Huaxia Bank Co. Ltd., A Shares | | | |
Industrial & Commercial Bank of China Ltd., A Shares | | | |
| | |
|
Industrial & Commercial Bank of China Ltd., H Shares | | | |
Industrial Bank Co. Ltd., A Shares | | | |
Inner Mongolia Yitai Coal Co. Ltd., B Shares | | | |
| | | |
Jiangxi Copper Co. Ltd., A Shares | | | |
Jiangxi Copper Co. Ltd., H Shares | | | |
JinkoSolar Holding Co. Ltd., ADR(c) | | | |
KE Holdings, Inc., ADR(c) | | | |
Kuaishou Technology(a)(b) | | | |
| | | |
Kweichow Moutai Co. Ltd., A Shares | | | |
| | | |
Longfor Group Holdings Ltd.(b)(c) | | | |
Lufax Holding Ltd., ADR(c) | | | |
| | | |
Metallurgical Corp. of China Ltd., A Shares | | | |
Metallurgical Corp. of China Ltd., H Shares(c) | | | |
| | | |
New China Life Insurance Co. Ltd., A Shares | | | |
New China Life Insurance Co. Ltd., H Shares | | | |
New Oriental Education & Technology Group, Inc. | | | |
PDD Holdings, Inc., ADR(a) | | | |
People’s Insurance Co. (Group) of China Ltd. (The), A Shares | | | |
People’s Insurance Co. (Group) of China Ltd. (The), H Shares | | | |
PetroChina Co. Ltd., A Shares | | | |
PetroChina Co. Ltd., H Shares | | | |
PICC Property & Casualty Co. Ltd., H Shares | | | |
Ping An Bank Co. Ltd., A Shares | | | |
Ping An Insurance (Group) Co. of China Ltd., A Shares | | | |
Ping An Insurance (Group) Co. of China Ltd., H Shares | | | |
Poly Developments and Holdings Group Co. Ltd., A Shares | | | |
Postal Savings Bank of China Co. Ltd., A Shares | | | |
Postal Savings Bank of China Co. Ltd., H Shares(b) | | | |
Power Construction Corp. of China Ltd., A Shares | | | |
Qifu Technology, Inc., ADR | | | |
SAIC Motor Corp. Ltd., A Shares | | | |
Shaanxi Coal Industry Co. Ltd., A Shares | | | |
Shanghai Pharmaceuticals Holding Co. Ltd., A Shares | | | |
Shanghai Pharmaceuticals Holding Co. Ltd., H Shares | | | |
Shanghai Pudong Development Bank Co. Ltd., A Shares | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)—(continued)
October 31, 2024
| | |
|
Shenzhou International Group Holdings Ltd. | | | |
Sino Biopharmaceutical Ltd. | | | |
Sinopharm Group Co. Ltd., H Shares | | | |
Sunny Optical Technology Group Co. Ltd. | | | |
| | | |
Tencent Music Entertainment Group, ADR | | | |
| | | |
Vipshop Holdings Ltd., ADR(c) | | | |
Weichai Power Co. Ltd., A Shares | | | |
Weichai Power Co. Ltd., H Shares | | | |
Wuxi Biologics (Cayman), Inc.(a)(b) | | | |
Xiaomi Corp., B Shares(a)(b) | | | |
Xinyi Solar Holdings Ltd. | | | |
Yankuang Energy Group Co. Ltd., A Shares | | | |
Yankuang Energy Group Co. Ltd., H Shares(c) | | | |
Yum China Holdings, Inc.(c) | | | |
Zijin Mining Group Co. Ltd., A Shares | | | |
Zijin Mining Group Co. Ltd., H Shares | | | |
| | | |
|
| | | |
| | | |
| | | |
Bharat Petroleum Corp. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Dr. Reddy’s Laboratories Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hindustan Petroleum Corp. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jindal Steel & Power Ltd. | | | |
Jio Financial Services Ltd.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oil & Natural Gas Corp. Ltd. | | | |
| | | |
| | | |
Power Grid Corp. of India Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
Steel Authority of India Ltd. | | | |
Sun Pharmaceutical Industries Ltd. | | | |
Tata Consultancy Services Ltd. | | | |
| | | |
Tata Power Co. Ltd. (The) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
PT Astra International Tbk | | | |
| | | |
PT Bank Mandiri (Persero) Tbk | | | |
PT Bank Negara Indonesia (Persero) Tbk | | | |
PT Bank Rakyat Indonesia (Persero) Tbk | | | |
PT GoTo Gojek Tokopedia Tbk(a) | | | |
PT Telkom Indonesia (Persero) Tbk | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
America Movil S.A.B. de C.V., Class B | | | |
Arca Continental S.A.B. de C.V. | | | |
CEMEX S.A.B. de C.V., Series CPO(d) | | | |
Coca-Cola FEMSA S.A.B. de C.V., Series CPO | | | |
Fibra Uno Administracion S.A. de C.V. | | | |
Fomento Economico Mexicano S.A.B. de C.V., Series CPO(e) | | | |
Grupo Bimbo S.A.B. de C.V., Series A(c) | | | |
Grupo Financiero Banorte S.A.B. de C.V., Class O | | | |
Grupo Mexico S.A.B. de C.V., Class B | | | |
Grupo Televisa S.A.B., Series CPO(c)(f) | | | |
Wal-Mart de Mexico S.A.B. de C.V., Series V | | | |
| | | |
|
NEPI Rockcastle N.V.(a)(c) | | | |
|
| | | |
| | | |
| | | |
GMK Norilskiy Nickel PAO(g) | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
Mobile TeleSystems PJSC(g) | | | |
Moscow Exchange MICEX-RTS PJSC(g) | | | |
| | | |
Novolipetsk Steel PJSC(g) | | | |
| | | |
Sberbank of Russia PJSC(g) | | | |
| | | |
| | | |
| | | |
Surgutneftegas PJSC, Preference Shares(g) | | | |
| | | |
Tatneft PJSC, Preference Shares(g) | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sahara International Petrochemical Co. | | | |
Saudi Arabian Mining Co.(a) | | | |
| | | |
| | | |
Saudi Basic Industries Corp. | | | |
Saudi National Bank (The) | | | |
| | | |
Yanbu National Petrochemical Co., Class A | | | |
| | | |
|
| | | |
Anglo American Platinum Ltd.(c) | | | |
| | | |
Bidvest Group Ltd. (The)(c) | | | |
Capitec Bank Holdings Ltd.(c) | | | |
| | | |
| | | |
Foschini Group Ltd. (The)(c) | | | |
| | | |
Growthpoint Properties Ltd.(c) | | | |
Impala Platinum Holdings Ltd.(a)(c) | | | |
| | | |
| | | |
| | | |
Northam Platinum Holdings Ltd.(c) | | | |
| | | |
| | | |
| | | |
| | | |
Sibanye Stillwater Ltd.(a)(c) | | | |
| | |
|
Standard Bank Group Ltd.(c) | | | |
Woolworths Holdings Ltd.(c) | | | |
| | | |
|
| | | |
ASE Technology Holding Co. Ltd. | | | |
| | | |
| | | |
Catcher Technology Co. Ltd. | | | |
Cathay Financial Holding Co. Ltd. | | | |
Chailease Holding Co. Ltd. | | | |
Cheng Shin Rubber Industry Co. Ltd. | | | |
Chicony Electronics Co. Ltd. | | | |
| | | |
| | | |
Chunghwa Telecom Co. Ltd. | | | |
| | | |
CTBC Financial Holding Co. Ltd. | | | |
| | | |
E.Sun Financial Holding Co. Ltd. | | | |
| | | |
Evergreen Marine Corp. Taiwan Ltd. | | | |
Far EasTone Telecommunications Co. Ltd. | | | |
First Financial Holding Co. Ltd. | | | |
| | | |
Fubon Financial Holding Co. Ltd. | | | |
| | | |
Hon Hai Precision Industry Co. Ltd. | | | |
| | | |
| | | |
KGI Financial Holding Co. Ltd. | | | |
Largan Precision Co. Ltd. | | | |
| | | |
| | | |
Mega Financial Holding Co. Ltd. | | | |
Micro-Star International Co. Ltd. | | | |
| | | |
Nanya Technology Corp.(a) | | | |
Novatek Microelectronics Corp. | | | |
| | | |
Powerchip Semiconductor Manufacturing Corp.(a) | | | |
Powertech Technology, Inc. | | | |
| | | |
| | | |
Radiant Opto-Electronics Corp. | | | |
Realtek Semiconductor Corp. | | | |
Simplo Technology Co. Ltd. | | | |
Sino-American Silicon Products, Inc. | | | |
SinoPac Financial Holdings Co. Ltd. | | | |
| | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
TCC Group Holdings Co. Ltd. | | | |
| | | |
Unimicron Technology Corp. | | | |
Uni-President Enterprises Corp. | | | |
United Microelectronics Corp. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
Winbond Electronics Corp.(a) | | | |
| | | |
| | | |
| | | |
WT Microelectronics Co. Ltd. | | | |
| | | |
Yang Ming Marine Transport Corp. | | | |
Yuanta Financial Holding Co. Ltd. | | | |
Zhen Ding Technology Holding Ltd. | | | |
| | | |
|
Advanced Info Service PCL, NVDR | | | |
| | | |
| | | |
Bangkok Dusit Medical Services PCL, NVDR | | | |
| | | |
Charoen Pokphand Foods PCL, NVDR | | | |
| | | |
Indorama Ventures PCL, NVDR | | | |
| | | |
Krung Thai Bank PCL, NVDR | | | |
PTT Exploration & Production PCL, NVDR | | | |
PTT Global Chemical PCL, NVDR | | | |
| | | |
| | | |
Siam Cement PCL (The), NVDR | | | |
| | | |
TMBThanachart Bank PCL, NVDR | | | |
| | | |
| | | |
|
| | | |
BIM Birlesik Magazalar A.S. | | | |
Eregli Demir ve Celik Fabrikalari T.A.S. | | | |
Haci Omer Sabanci Holding A.S. | | | |
| | | |
| | |
|
| | | |
Turkcell Iletisim Hizmetleri A.S. | | | |
Turkiye Is Bankasi A.S., Class C | | | |
Turkiye Petrol Rafinerileri A.S. | | | |
Turkiye Sise ve Cam Fabrikalari A.S. | | | |
Yapi ve Kredi Bankasi A.S. | | | |
| | | |
|
| | | |
|
| | | |
Total Common Stocks & Other Equity Interests (Cost $1,063,070,474) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(h)(i) (Cost $9,010,769) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-100.69% (Cost $1,072,081,243) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(h)(i)(j) | | | |
Invesco Private Prime Fund, 4.99%(h)(i)(j) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $55,148,611) | |
TOTAL INVESTMENTS IN SECURITIES-105.16% (Cost $1,127,229,854) | |
OTHER ASSETS LESS LIABILITIES-(5.16)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
CPO-Certificates of Ordinary Participation |
NVDR-Non-Voting Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $42,488,008, which represented 3.44% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Each CPO for Cemex S.A.B. de C.V. represents two Series A shares and one Series B share. |
| Each CPO for Fomento Economico Mexicano, S.A.B. de C.V. represents one Series B share and four Series D shares. |
| Each CPO for Grupo Televisa S.A.B. represents twenty-five Series A shares, twenty-two Series B shares, thirty-five Series D shares and thirty-five Series L shares. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global Clean Energy ETF (PBD)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.89% |
|
| | | |
|
| | | |
|
Ballard Power Systems, Inc.(a)(b) | | | |
| | | |
Canadian Solar, Inc.(a)(b) | | | |
Innergex Renewable Energy, Inc. | | | |
| | | |
| | | |
|
Sociedad Quimica y Minera de Chile S.A., ADR(a) | | | |
|
China Datang Corp. Renewable Power Co. Ltd., H Shares(a) | | | |
Flat Glass Group Co. Ltd., H Shares(a) | | | |
Ganfeng Lithium Group Co. Ltd., H Shares(a)(c) | | | |
JinkoSolar Holding Co. Ltd., ADR(a) | | | |
| | | |
Tianneng Power International Ltd.(a) | | | |
| | | |
Xinyi Energy Holdings Ltd.(a) | | | |
Xinyi Solar Holdings Ltd. | | | |
| | | |
Yadea Group Holdings Ltd.(a)(c) | | | |
| | | |
|
| | | |
| | | |
Vestas Wind Systems A/S(b) | | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
SMA Solar Technology AG(a) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | |
|
Energix-Renewable Energies Ltd. | | | |
Enlight Renewable Energy Ltd.(b) | | | |
| | | |
|
Eurogroup Laminations S.p.A.(a) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
|
| | | |
Doosan Fuel Cell Co. Ltd.(a)(b) | | | |
| | | |
HD Hyundai Electric Co. Ltd. | | | |
Lotte Energy Materials Corp. | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Corporacion ACCIONA Energias Renovables S.A.(a) | | | |
| | | |
Solaria Energia y Medio Ambiente S.A.(a)(b) | | | |
| | | |
|
NIBE Industrier AB, Class B(a) | | | |
|
| | | |
Meyer Burger Technology AG(a)(b) | | | |
| | | |
|
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global Clean Energy ETF (PBD)—(continued)
October 31, 2024
| | |
|
Chung-Hsin Electric and Machinery Manufacturing Corp. | | | |
| | | |
Fortune Electric Co. Ltd. | | | |
| | | |
Phihong Technology Co. Ltd.(b) | | | |
Shihlin Electric & Engineering Corp. | | | |
Sino-American Silicon Products, Inc. | | | |
Ta Ya Electric Wire & Cable Co. Ltd. | | | |
Teco Electric and Machinery Co. Ltd. | | | |
United Renewable Energy Co. Ltd.(b) | | | |
Voltronic Power Technology Corp. | | | |
| | | |
|
Ceres Power Holdings PLC(a)(b) | | | |
| | | |
| | | |
| | | |
|
Ameresco, Inc., Class A(a)(b) | | | |
Archer Aviation, Inc., Class A(a)(b) | | | |
Array Technologies, Inc.(a)(b) | | | |
| | | |
Bloom Energy Corp., Class A(a)(b) | | | |
| | | |
Brookfield Renewable Corp., Class A(a) | | | |
ChargePoint Holdings, Inc.(a)(b) | | | |
Core & Main, Inc., Class A(b) | | | |
Darling Ingredients, Inc.(b) | | | |
| | | |
Eos Energy Enterprises, Inc.(a)(b) | | | |
| | | |
| | | |
FuelCell Energy, Inc.(a)(b) | | | |
HA Sustainable Infrastructure Capital, Inc. | | | |
| | | |
| | |
United States-(continued) |
| | | |
| | | |
Ormat Technologies, Inc.(a) | | | |
| | | |
| | | |
| | | |
Rivian Automotive, Inc., Class A(a)(b) | | | |
Shoals Technologies Group, Inc., Class A(b) | | | |
| | | |
SolarEdge Technologies, Inc.(a)(b) | | | |
Sunnova Energy International, Inc.(a)(b) | | | |
| | | |
TPI Composites, Inc.(a)(b) | | | |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.89% (Cost $133,288,817) | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-31.31% |
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $30,455,897) | |
TOTAL INVESTMENTS IN SECURITIES-131.20% (Cost $163,744,714) | |
OTHER ASSETS LESS LIABILITIES-(31.20)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global Clean Energy ETF (PBD)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $5,792,701, which represented 5.96% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global Water ETF (PIO)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.80% |
|
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | | | |
|
| | | |
|
Aguas Andinas S.A., Class A | | | |
|
China Water Affairs Group Ltd.(a) | | | |
|
Veolia Environnement S.A. | | | |
|
| | | |
| | | |
Kurita Water Industries Ltd. | | | |
| | | |
| | | |
Nomura Micro Science Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
|
Grupo Rotoplas S.A.B. de C.V.(a)(b) | | | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
United Utilities Group PLC | | | |
| | | |
| | |
|
| | | |
Advanced Drainage Systems, Inc.(a) | | | |
American Water Works Co., Inc. | | | |
Consolidated Water Co. Ltd. | | | |
Core & Main, Inc., Class A(a)(b) | | | |
| | | |
Ferguson Enterprises, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $220,624,336) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(c)(d) (Cost $122,640) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.84% (Cost $220,746,976) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(c)(d)(e) | | | |
Invesco Private Prime Fund, 4.99%(c)(d)(e) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $7,423,455) | |
TOTAL INVESTMENTS IN SECURITIES-102.59% (Cost $228,170,431) | |
OTHER ASSETS LESS LIABILITIES-(2.59)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Global Water ETF (PIO)—(continued)
October 31, 2024
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International BuyBack AchieversTM ETF (IPKW)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.72% |
|
| | | |
| | | |
McMillan Shakespeare Ltd. | | | |
| | | |
| | | |
| | | |
|
Groupe Bruxelles Lambert N.V. | | | |
|
| | | |
Canada Goose Holdings, Inc.(a) | | | |
CES Energy Solutions Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Secure Energy Services, Inc. | | | |
Trican Well Service Ltd.(b) | | | |
| | | |
|
Alibaba Group Holding Ltd. | | | |
|
A.P. Moller - Maersk A/S, Class B | | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
Glenveagh Properties PLC(a)(c) | | | |
| | | |
| | | |
|
| | | |
Tel Aviv Stock Exchange Ltd. (The) | | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
|
| | | |
| | | |
Dai Nippon Printing Co. Ltd. | | | |
| | | |
Hokkoku Financial Holdings, Inc. | | | |
| | | |
| | | |
Japan Aviation Electronics Industry Ltd. | | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Seino Holdings Co. Ltd.(b) | | | |
| | | |
| | | |
| | | |
| | | |
Toho Holdings Co. Ltd.(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yamato Holdings Co. Ltd.(b) | | | |
| | | |
|
Grupo Elektra S.A.B. de C.V.(b)(d) | | | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
|
| | | |
Woolworths Holdings Ltd.(b) | | | |
| | | |
|
| | | |
Hyundai Elevator Co. Ltd. | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International BuyBack AchieversTM ETF (IPKW)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
Johnson Service Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Paragon Banking Group PLC | | | |
| | | |
| | | |
| | |
United Kingdom-(continued) |
Spirent Communications PLC(a) | | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.72% (Cost $88,833,656) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $3,665,080) | |
TOTAL INVESTMENTS IN SECURITIES-103.74% (Cost $92,498,736) | |
OTHER ASSETS LESS LIABILITIES-(3.74)% | |
| |
Notes to Schedule of Investments: |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $691,660, which represented less than 1% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International BuyBack AchieversTM ETF (IPKW)—(continued)
October 31, 2024
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.78% |
|
| | | |
Commonwealth Bank of Australia | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
National Australia Bank Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Woodside Energy Group Ltd. | | | |
| | | |
| | | |
|
Anheuser-Busch InBev S.A./N.V. | | | |
Groupe Bruxelles Lambert N.V. | | | |
| | | |
|
| | | |
Itau Unibanco Holding S.A., Preference Shares | | | |
Itausa S.A., Preference Shares | | | |
| | | |
| | | |
Wheaton Precious Metals Corp. | | | |
| | | |
|
| | | |
| | | |
Bank of Nova Scotia (The) | | | |
| | | |
Canadian Imperial Bank of Commerce | | | |
Canadian National Railway Co. | | | |
Canadian Pacific Kansas City Ltd. | | | |
Constellation Software, Inc. | | | |
| | | |
| | | |
| | | |
Restaurant Brands International, Inc. | | | |
Rogers Communications, Inc., Class B | | | |
| | | |
Shopify, Inc., Class A(a) | | | |
| | | |
| | | |
Toronto-Dominion Bank (The) | | | |
| | | |
| | | |
|
Alibaba Group Holding Ltd. | | | |
| | | |
| | |
|
Bank of China Ltd., H Shares | | | |
| | | |
China Construction Bank Corp., H Shares | | | |
China Resources Land Ltd. | | | |
Industrial & Commercial Bank of China Ltd., H Shares | | | |
| | | |
| | | |
| | | |
| | | |
PDD Holdings, Inc., ADR(a) | | | |
Ping An Insurance (Group) Co. of China Ltd., H Shares | | | |
| | | |
| | | |
| | | |
Xiaomi Corp., B Shares(a)(b) | | | |
| | | |
|
Novo Nordisk A/S, Class B | | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Cie Generale des Etablissements Michelin S.C.A. | | | |
| | | |
| | | |
Hermes International S.C.A. | | | |
| | | |
| | | |
| | | |
LVMH Moet Hennessy Louis Vuitton SE | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Henkel AG & Co. KGaA, Preference Shares | | | |
| | | |
| | | |
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen, Class R | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
Volkswagen AG, Preference Shares | | | |
| | | |
|
| | | |
Hong Kong Exchanges & Clearing Ltd. | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tata Consultancy Services Ltd. | | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
Daiwa House Industry Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Electric Corp. | | | |
Mitsubishi UFJ Financial Group, Inc. | | | |
| | | |
Mizuho Financial Group, Inc. | | | |
Murata Manufacturing Co. Ltd. | | | |
| | |
|
| | | |
Nippon Telegraph & Telephone Corp. | | | |
| | | |
| | | |
Recruit Holdings Co. Ltd. | | | |
| | | |
| | | |
Shin-Etsu Chemical Co. Ltd. | | | |
| | | |
| | | |
| | | |
Sumitomo Electric Industries Ltd. | | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
Takeda Pharmaceutical Co. Ltd. | | | |
| | | |
Tokio Marine Holdings, Inc. | | | |
| | | |
| | | |
|
Arca Continental S.A.B. de C.V. | | | |
Grupo Financiero Banorte S.A.B. de C.V., Class O | | | |
Grupo Mexico S.A.B. de C.V., Class B | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
|
| | | |
CapitaLand Integrated Commercial Trust | | | |
| | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
Singapore Telecommunications Ltd. | | | |
United Overseas Bank Ltd. | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
Samsung Electronics Co. Ltd. | | | |
| | | |
Woori Financial Group, Inc. | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)—(continued)
October 31, 2024
| | |
|
| | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | |
| | | |
| | | |
Industria de Diseno Textil S.A. | | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Chocoladefabriken Lindt & Spruengli AG, PC | | | |
Cie Financiere Richemont S.A. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
Cathay Financial Holding Co. Ltd. | | | |
CTBC Financial Holding Co. Ltd. | | | |
E.Sun Financial Holding Co. Ltd. | | | |
Fubon Financial Holding Co. Ltd. | | | |
Hon Hai Precision Industry Co. Ltd. | | | |
| | | |
SinoPac Financial Holdings Co. Ltd. | | | |
Taishin Financial Holding Co. Ltd. | | | |
Taiwan Cooperative Financial Holding Co. Ltd. | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
Yuanta Financial Holding Co. Ltd. | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
London Stock Exchange Group PLC | | | |
Reckitt Benckiser Group PLC | | | |
| | | |
Rolls-Royce Holdings PLC(a) | | | |
| | | |
| | |
United Kingdom-(continued) |
| | | |
| | | |
| | | |
| | | |
United Utilities Group PLC | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
Advanced Micro Devices, Inc.(a) | | | |
| | | |
Agilent Technologies, Inc. | | | |
Air Products and Chemicals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
American International Group, Inc. | | | |
| | | |
American Water Works Co., Inc. | | | |
Ameriprise Financial, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Apollo Global Management, Inc. | | | |
| | | |
| | | |
| | | |
Arthur J. Gallagher & Co. | | | |
| | | |
| | | |
Automatic Data Processing, Inc. | | | |
| | | |
AvalonBay Communities, Inc. | | | |
| | | |
Baker Hughes Co., Class A | | | |
| | | |
Bank of New York Mellon Corp. (The) | | | |
Becton, Dickinson and Co. | | | |
| | | |
| | | |
Blackstone, Inc., Class A(c) | | | |
| | | |
| | | |
Boston Scientific Corp.(a) | | | |
| | | |
| | | |
| | | |
Cadence Design Systems, Inc.(a) | | | |
Capital One Financial Corp. | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)—(continued)
October 31, 2024
| | |
United States-(continued) |
Charles Schwab Corp. (The) | | | |
| | | |
Chipotle Mexican Grill, Inc.(a) | | | |
| | | |
Church & Dwight Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cognizant Technology Solutions Corp., Class A | | | |
| | | |
| | | |
| | | |
Consolidated Edison, Inc. | | | |
Constellation Energy Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
CrowdStrike Holdings, Inc., Class A(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dell Technologies, Inc., Class C | | | |
| | | |
| | | |
| | | |
Digital Realty Trust, Inc. | | | |
Discover Financial Services | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Edwards Lifesciences Corp.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ferguson Enterprises, Inc. | | | |
| | | |
Fidelity National Information Services, Inc. | | | |
| | | |
| | | |
| | |
United States-(continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Goldman Sachs Group, Inc. (The) | | | |
| | | |
| | | |
| | | |
Healthpeak Properties, Inc. | | | |
| | | |
| | | |
| | | |
Hilton Worldwide Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Illinois Tool Works, Inc. | | | |
| | | |
| | | |
Intercontinental Exchange, Inc. | | | |
International Business Machines Corp. | | | |
| | | |
Intuitive Surgical, Inc.(a) | | | |
| | | |
| | | |
| | | |
Johnson Controls International PLC | | | |
| | | |
| | | |
| | | |
Keysight Technologies, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Marriott International, Inc., Class A | | | |
Marsh & McLennan Cos., Inc. | | | |
| | | |
Mastercard, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Meta Platforms, Inc., Class A | | | |
| | | |
Mettler-Toledo International, Inc.(a) | | | |
Microchip Technology, Inc. | | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)—(continued)
October 31, 2024
| | |
United States-(continued) |
| | | |
| | | |
Mondelez International, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
O’Reilly Automotive, Inc.(a) | | | |
| | | |
| | | |
Palo Alto Networks, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
PNC Financial Services Group, Inc. (The) | | | |
| | | |
Procter & Gamble Co. (The) | | | |
| | | |
| | | |
Prudential Financial, Inc. | | | |
Public Service Enterprise Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Regeneron Pharmaceuticals, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sherwin-Williams Co. (The) | | | |
Simon Property Group, Inc. | | | |
Snowflake, Inc., Class A(a)(c) | | | |
| | | |
| | | |
| | | |
Super Micro Computer, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | |
United States-(continued) |
| | | |
| | | |
| | | |
Thermo Fisher Scientific, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Travelers Cos., Inc. (The) | | | |
| | | |
| | | |
Uber Technologies, Inc.(a) | | | |
| | | |
United Parcel Service, Inc., Class B | | | |
| | | |
| | | |
| | | |
Verizon Communications, Inc. | | | |
Vertex Pharmaceuticals, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Williams Cos., Inc. (The) | | | |
Workday, Inc., Class A(a) | | | |
| | | |
| | | |
Zimmer Biomet Holdings, Inc.(c) | | | |
| | | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $1,624,982,640) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) (Cost $1,973,306) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.90% (Cost $1,626,955,946) | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Climate 500 ETF (KLMT)—(continued)
October 31, 2024
| | |
Money Market Funds-(continued) |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $6,659,061) | |
TOTAL INVESTMENTS IN SECURITIES-100.30% (Cost $1,633,615,007) | |
OTHER ASSETS LESS LIABILITIES-(0.30)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
PC-Participation Certificate |
REIT-Real Estate Investment Trust |
Notes to Schedule of Investments: |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $6,155,397, which represented less than 1% of the Fund’s Net Assets. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the period ended October 31, 2024. |
| | | | Change in Unrealized Appreciation | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Timber ETF (CUT)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.73% |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
|
| | | |
|
Lee & Man Paper Manufacturing Ltd. | | | |
Nine Dragons Paper Holdings Ltd.(a) | | | |
Shandong Sun Paper Industry JSC Ltd., A Shares | | | |
ShenZhen YUTO Packaging Technology Co. Ltd., A Shares | | | |
| | | |
|
| | | |
| | | |
Stora Enso OYJ, Class R(b) | | | |
| | | |
| | | |
|
Mercer International, Inc. | | | |
|
Aditya Birla Real Estate Ltd. | | | |
Century Plyboards (India) Ltd. | | | |
Greenpanel Industries Ltd. | | | |
| | | |
West Coast Paper Mills Ltd. | | | |
| | | |
|
PT Indah Kiat Pulp & Paper Tbk | | | |
PT Pabrik Kertas Tjiwi Kimia Tbk | | | |
| | | |
|
| | | |
| | | |
Nippon Paper Industries Co. Ltd.(b) | | | |
| | | |
| | | |
| | | |
|
| | | |
| | |
|
| | | |
Semapa-Sociedade de Investimento e Gestao | | | |
| | | |
|
Segezha Group PJSC(a)(c)(d) | | | |
|
| | | |
Saudi Paper Manufacturing Co. | | | |
| | | |
|
| | | |
|
Ence Energia y Celulosa S.A.(b) | | | |
|
| | | |
| | | |
Svenska Cellulosa AB S.C.A., Class B(b) | | | |
| | | |
|
| | | |
|
| | | |
| | | |
Longchen Paper & Packaging Co. Ltd.(a) | | | |
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
| | | |
Clearwater Paper Corp.(a) | | | |
Graphic Packaging Holding Co.(b) | | | |
| | | |
| | | |
Packaging Corp. of America | | | |
Pactiv Evergreen, Inc.(b) | | | |
| | | |
| | | |
| | | |
Resolute Forest Products, Inc.(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $50,298,407) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Global Timber ETF (CUT)—(continued)
October 31, 2024
| | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(e)(f) (Cost $704) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.73% (Cost $50,299,111) | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-15.55% |
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
| | |
Money Market Funds-(continued) |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $8,560,663) | |
TOTAL INVESTMENTS IN SECURITIES-115.28% (Cost $58,859,774) | |
OTHER ASSETS LESS LIABILITIES-(15.28)% | |
| |
Investment Abbreviations: |
NVDR-Non-Voting Depositary Receipt |
Notes to Schedule of Investments: |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| 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 October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 4. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
| | | | | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| Includes capital gains distributions from affiliated underlying funds as follows: |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Green Building ETF (GBLD)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.87% |
|
| | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
| | | |
| | | |
|
CA Immobilien Anlagen AG(a) | | | |
|
| | | |
| | | |
| | | |
|
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
Unibail-Rodamco-Westfield SE | | | |
| | | |
|
| | | |
Henderson Land Development Co. Ltd. | | | |
| | | |
| | | |
|
Embassy Office Parks REIT | | | |
Mindspace Business Parks REIT(c) | | | |
| | | |
| | | |
|
| | | |
AEON REIT Investment Corp. | | | |
| | | |
Daiwa House Industry Co. Ltd. | | | |
Daiwa House REIT Investment Corp. | | | |
Daiwa Office Investment Corp. | | | |
Frontier Real Estate Investment Corp. | | | |
| | | |
Global One Real Estate Investment Corp. | | | |
| | | |
| | | |
Isetan Mitsukoshi Holdings Ltd. | | | |
| | | |
Japan Logistics Fund, Inc. | | | |
Japan Metropolitan Fund Investment Corp. | | | |
Japan Prime Realty Investment Corp. | | | |
Japan Real Estate Investment Corp. | | | |
| | | |
| | | |
| | |
|
Mitsubishi Estate Logistics REIT Investment Corp. | | | |
Mori Hills REIT Investment Corp. | | | |
Nippon Building Fund, Inc. | | | |
Nippon Prologis REIT, Inc. | | | |
Nomura Real Estate Master Fund, Inc. | | | |
| | | |
| | | |
Sekisui House REIT, Inc.(a) | | | |
SOSiLA Logistics REIT, Inc. | | | |
| | | |
|
Eurocommercial Properties N.V. | | | |
| | | |
| | | |
|
| | | |
|
| | | |
CapitaLand India Trust(a) | | | |
CapitaLand Integrated Commercial Trust | | | |
| | | |
Frasers Centrepoint Trust | | | |
Frasers Logistics & Commercial Trust(c) | | | |
| | | |
Lendlease Global Commercial REIT | | | |
Mapletree Pan Asia Commercial Trust(a) | | | |
| | | |
|
| | | |
|
Inmobiliaria Colonial SOCIMI S.A. | | | |
Lar Espana Real Estate SOCIMI S.A. | | | |
Merlin Properties SOCIMI S.A. | | | |
| | | |
| | | |
|
Atrium Ljungberg AB, Class B | | | |
| | | |
Platzer Fastigheter Holding AB, Class B | | | |
| | | |
|
Berkeley Group Holdings PLC (The) | | | |
Crest Nicholson Holdings PLC | | | |
Land Securities Group PLC | | | |
| | | |
| | | |
|
Alexandria Real Estate Equities, Inc. | | | |
American Assets Trust, Inc.(a) | | | |
Beazer Homes USA, Inc.(b) | | | |
Brandywine Realty Trust(a) | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Green Building ETF (GBLD)—(continued)
October 31, 2024
| | |
United States-(continued) |
Empire State Realty Trust, Inc., Class A | | | |
| | | |
Highwoods Properties, Inc. | | | |
Hudson Pacific Properties, Inc.(a) | | | |
JBG SMITH Properties, (Acquired 04/20/2021 - 10/18/2024; Cost $61,863)(d) | | | |
| | | |
| | | |
| | | |
| | | |
Piedmont Office Realty Trust, Inc., Class A(a) | | | |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.87% (Cost $9,797,949) | |
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
Money Market Funds-11.01% |
Invesco Private Government Fund, 4.84%(e)(f)(g) | | | |
Invesco Private Prime Fund, 4.99%(e)(f)(g) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $949,901) | |
TOTAL INVESTMENTS IN SECURITIES-110.88% (Cost $10,747,850) | |
OTHER ASSETS LESS LIABILITIES-(10.88)% | |
| |
Investment Abbreviations: |
REIT-Real Estate Investment Trust |
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $113,743, which represented 1.32% of the Fund’s Net Assets. |
| Restricted security. The value of this security at October 31, 2024 represented less than 1% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
| | | | | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| Includes capital gains distributions from affiliated underlying funds as follows: |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco MSCI Green Building ETF (GBLD)—(continued)
October 31, 2024
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Global Water Index ETF (CGW)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.83% |
|
| | | |
|
Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | | | |
Cia de Saneamento de Minas Gerais COPASA MG | | | |
Cia de Saneamento do Parana, Series CPO | | | |
| | | |
|
Beijing Capital Eco-environment Protection Group Co. Ltd., A Shares | | | |
Beijing Enterprises Water Group Ltd.(a) | | | |
Beijing Originwater Technology Co. Ltd., A Shares | | | |
Chengdu Xingrong Environment Co. Ltd., A Shares | | | |
China Lesso Group Holdings Ltd. | | | |
Jingjin Equipment, Inc., A Shares | | | |
Zhongshan Public Utilities Group Co. Ltd., A Shares | | | |
| | | |
|
Veolia Environnement S.A. | | | |
|
| | | |
ElectroSteel Castings Ltd. | | | |
| | | |
Jain Irrigation Systems Ltd.(b) | | | |
| | | |
| | | |
| | | |
| | | |
|
Interpump Group S.p.A.(a) | | | |
|
Kurita Water Industries Ltd. | | | |
Nomura Micro Science Co. Ltd.(a) | | | |
| | | |
| | | |
|
Orbia Advance Corp. S.A.B. de C.V.(a) | | | |
|
| | | |
|
Alkhorayef Water and Power Technologies Co.(b) | | | |
Power and Water Utility Co. for Jubail and Yanbu | | | |
| | | |
|
| | | |
| | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
|
Kuo Toong International Co. Ltd. | | | |
|
| | | |
|
| | | |
| | | |
United Utilities Group PLC(a) | | | |
| | | |
|
Advanced Drainage Systems, Inc. | | | |
American States Water Co. | | | |
American Water Works Co., Inc. | | | |
| | | |
California Water Service Group | | | |
Consolidated Water Co. Ltd.(a) | | | |
Core & Main, Inc., Class A(b) | | | |
| | | |
| | | |
Essential Utilities, Inc.(a) | | | |
Franklin Electric Co., Inc. | | | |
| | | |
| | | |
| | | |
Montrose Environmental Group, Inc.(a)(b) | | | |
Mueller Water Products, Inc., Class A | | | |
| | | |
| | | |
Select Water Solutions, Inc., Class A | | | |
| | | |
TETRA Technologies, Inc.(a)(b) | | | |
| | | |
| | | |
Watts Water Technologies, Inc., Class A | | | |
| | | |
Zurn Elkay Water Solutions Corp.(a) | | | |
| | | |
Total Common Stocks & Other Equity Interests (Cost $807,090,957) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(c)(d) (Cost $62,938) | | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.84% (Cost $807,153,895) | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P Global Water Index ETF (CGW)—(continued)
October 31, 2024
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(c)(d)(e) | | | |
Invesco Private Prime Fund, 4.99%(c)(d)(e) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $21,521,174) | |
TOTAL INVESTMENTS IN SECURITIES-102.08% (Cost $828,675,069) | |
OTHER ASSETS LESS LIABILITIES-(2.08)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
CPO-Certificates of Ordinary Participation |
NVDR-Non-Voting Depositary Receipt |
Notes to Schedule of Investments: |
| All or a portion of this security was out on loan at October 31, 2024. |
| Non-income producing security. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Quality ETF (IDHQ)
October 31, 2024
| | |
Common Stocks & Other Equity Interests-99.74% |
|
| | | |
| | | |
| | | |
| | | |
| | | |
James Hardie Industries PLC, CDI(a) | | | |
| | | |
| | | |
| | | |
Pilbara Minerals Ltd.(a)(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
|
| | | |
|
Brookfield Asset Management Ltd., Class A | | | |
| | | |
Canadian National Railway Co. | | | |
Canadian Natural Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Budweiser Brewing Co. APAC Ltd.(c) | | | |
Chow Tai Fook Jewellery Group Ltd. | | | |
| | | |
| | | |
| | | |
|
A.P. Moller - Maersk A/S, Class B | | | |
| | | |
| | | |
Novo Nordisk A/S, Class B | | | |
Novonesis (Novozymes) B, Class B | | | |
| | | |
|
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
|
| | | |
Hermes International S.C.A. | | | |
| | | |
LVMH Moet Hennessy Louis Vuitton SE | | | |
| | | |
| | | |
| | | |
|
| | | |
Dr. Ing. h.c. F. Porsche AG, Preference Shares(c) | | | |
| | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | | | |
| | | |
| | | |
|
Cathay Pacific Airways Ltd.(b) | | | |
Hong Kong Exchanges & Clearing Ltd. | | | |
Techtronic Industries Co. Ltd. | | | |
| | | |
|
Check Point Software Technologies Ltd.(a) | | | |
First International Bank of Israel Ltd. (The) | | | |
| | | |
| | | |
|
| | | |
FinecoBank Banca Fineco S.p.A.(b) | | | |
| | | |
Ryanair Holdings PLC, ADR(b) | | | |
| | | |
|
| | | |
| | | |
| | | |
BayCurrent Consulting, Inc. | | | |
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
| | | |
Daito Trust Construction Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Japan Exchange Group, Inc. | | | |
| | | |
| | | |
Koei Tecmo Holdings Co. Ltd.(b) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Quality ETF (IDHQ)—(continued)
October 31, 2024
| | |
|
| | | |
| | | |
McDonald’s Holdings Co. (Japan) Ltd.(b) | | | |
| | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
Nomura Research Institute Ltd. | | | |
| | | |
OBIC Business Consultants Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Recruit Holdings Co. Ltd. | | | |
| | | |
Santen Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Tokio Marine Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
Universal Music Group N.V.(b) | | | |
| | | |
| | | |
|
| | | |
Gjensidige Forsikring ASA | | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
|
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|
| | | |
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| | | |
Singapore Telecommunications Ltd. | | | |
| | | |
|
| | | |
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| | | |
Hankook Tire & Technology Co. Ltd. | | | |
Hanmi Semiconductor Co. Ltd. | | | |
| | | |
| | | |
| | |
|
| | | |
| | | |
| | | |
|
| | | |
Industria de Diseno Textil S.A.(b) | | | |
Puig Brands S.A., Class B(a) | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Industrivarden AB, Class C(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
Chocoladefabriken Lindt & Spruengli AG, PC | | | |
| | | |
| | | |
| | | |
Kuehne + Nagel International AG, Class R(b) | | | |
| | | |
| | | |
Partners Group Holding AG | | | |
| | | |
Sonova Holding AG, Class A(b) | | | |
Zurich Insurance Group AG | | | |
| | | |
|
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
| | | |
| | | |
Reckitt Benckiser Group PLC | | | |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco S&P International Developed Quality ETF (IDHQ)—(continued)
October 31, 2024
| | |
United Kingdom-(continued) |
| | | |
| | | |
| | | |
|
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| | | |
| | | |
| | | |
| | | |
| | | |
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.74% (Cost $350,012,698) | |
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, 4.84%(d)(e)(f) | | | |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $14,793,518) | |
TOTAL INVESTMENTS IN SECURITIES-103.61% (Cost $364,806,216) | |
OTHER ASSETS LESS LIABILITIES-(3.61)% | |
| |
Investment Abbreviations: |
ADR-American Depositary Receipt |
CDI-CREST Depository Interest |
PC-Participation Certificate |
Notes to Schedule of Investments: |
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $5,726,575, which represented 1.50% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in Unrealized Appreciation (Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| 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. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Assets and Liabilities
October 31, 2024
| Invesco China Technology ETF (CQQQ) | Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) | Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) | Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) |
| | | | |
Unaffiliated investments in securities, at value(a) | | | | |
Affiliated investments in securities, at value | | | | |
| | | | |
| | | | |
Foreign currencies, at value | | | | |
| | | | |
Cash segregated as collateral | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investments sold - affiliated broker | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investments purchased - affiliated broker | | | | |
Collateral upon return of securities loaned | | | | |
Collateral upon receipt of securities in-kind | | | | |
| | | | |
Accrued unitary management fees | | | | |
| | | | |
Accrued trustees’ and officer’s fees | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares of beneficial interest | | | | |
Distributable earnings (loss) | | | | |
| | | | |
Shares outstanding (unlimited amount authorized, $0.01 par value) | | | | |
| | | | |
| | | | |
Unaffiliated investments in securities, at cost | | | | |
Affiliated investments in securities, at cost | | | | |
Foreign currencies, at cost | | | | |
(a)Includes securities on loan with an aggregate value of: | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) | Invesco FTSE RAFI Emerging Markets ETF (PXH) | Invesco Global Clean Energy ETF (PBD) | Invesco Global Water ETF (PIO) | Invesco International BuyBack AchieversTM ETF (IPKW) | Invesco MSCI Global Climate 500 ETF (KLMT) | Invesco MSCI Global Timber ETF (CUT) |
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Statements of Assets and Liabilities—(continued)
October 31, 2024
| Invesco MSCI Green Building ETF (GBLD) | Invesco S&P Global Water Index ETF (CGW) | Invesco S&P International Developed Quality ETF (IDHQ) |
| | | |
Unaffiliated investments in securities, at value(a) | | | |
Affiliated investments in securities, at value | | | |
| | | |
| | | |
Foreign currencies, at value | | | |
Cash segregated as collateral | | | |
| | | |
| | | |
| | | |
| | | |
Investments sold - affiliated broker | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Investments purchased - affiliated broker | | | |
Collateral upon return of securities loaned | | | |
Collateral upon receipt of securities in-kind | | | |
| | | |
Accrued unitary management fees | | | |
| | | |
Accrued trustees’ and officer’s fees | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shares of beneficial interest | | | |
Distributable earnings (loss) | | | |
| | | |
Shares outstanding (unlimited amount authorized, $0.01 par value) | | | |
| | | |
| | | |
Unaffiliated investments in securities, at cost | | | |
Affiliated investments in securities, at cost | | | |
Foreign currencies, at cost | | | |
(a)Includes securities on loan with an aggregate value of: | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Operations
For the year ended October 31, 2024
| Invesco China Technology ETF (CQQQ) | Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) | Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) | Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) | Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) |
| | | | | |
Unaffiliated dividend income | | | | | |
Affiliated dividend income | | | | | |
Securities lending income, net | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Accounting & administration fees | | | | | |
| | | | | |
Custodian & transfer agent fees | | | | | |
Trustees’ and officer’s fees | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Realized and unrealized gain (loss) from: | | | | | |
Net realized gain (loss) from: | | | | | |
Unaffiliated investment securities | | | | | |
Affiliated investment securities | | | | | |
Unaffiliated in-kind redemptions | | | | | |
Affiliated in-kind redemptions | | | | | |
| | | | | |
Distributions of underlying fund shares | | | | | |
| | | | | |
Change in net unrealized appreciation (depreciation) of: | | | | | |
Unaffiliated investment securities | | | | | |
Affiliated investment securities | | | | | |
| | | | | |
Change in net unrealized appreciation | | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase in net assets resulting from operations | | | | | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
| Net of foreign taxes of $4,402,184. |
| Net of foreign taxes of $(4,596,649). |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco FTSE RAFI Emerging Markets ETF (PXH) | Invesco Global Clean Energy ETF (PBD) | Invesco Global Water ETF (PIO) | Invesco International BuyBack AchieversTM ETF (IPKW) | Invesco MSCI Global Climate 500 | Invesco MSCI Global Timber ETF (CUT) | Invesco MSCI Green Building ETF (GBLD) | Invesco S&P Global Water Index ETF (CGW) |
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Statements of Operations—(continued)
For the year ended October 31, 2024
| Invesco S&P International Developed Quality ETF (IDHQ) |
| |
Unaffiliated dividend income | |
Affiliated dividend income | |
Securities lending income, net | |
Foreign withholding tax claims | |
| |
| |
| |
| |
| |
| |
| |
Realized and unrealized gain (loss) from: | |
| |
Unaffiliated investment securities | |
Affiliated investment securities | |
| |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities | |
Affiliated investment securities | |
| |
Change in net unrealized appreciation | |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statements of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| Invesco China Technology ETF (CQQQ) | Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) |
| | | | |
| | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
| | | | |
Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
Changes in Shares Outstanding: | | | | |
| | | | |
| | | | |
Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) | Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) | Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) | Invesco FTSE RAFI Emerging Markets ETF (PXH) |
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Statements of Changes in Net Assets—(continued)
For the years ended October 31, 2024 and 2023
| Invesco Global Clean Energy ETF (PBD) | Invesco Global Water ETF (PIO) |
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Change in net unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
| | | | |
Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
Changes in Shares Outstanding: | | | | |
| | | | |
| | | | |
Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco International BuyBack AchieversTM ETF (IPKW) | Invesco MSCI Global Climate 500 ETF (KLMT) | Invesco MSCI Global Timber ETF (CUT) | Invesco MSCI Green Building ETF (GBLD) |
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Statements of Changes in Net Assets—(continued)
For the years ended October 31, 2024 and 2023
| Invesco S&P Global Water Index ETF (CGW) | Invesco S&P International Developed Quality ETF (IDHQ) |
| | | | |
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| | | | |
Change in net unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to Shareholders from: | | | | |
| | | | |
Shareholder Transactions: | | | | |
Proceeds from shares sold | | | | |
Value of shares repurchased | | | | |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | | | |
Net increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
Changes in Shares Outstanding: | | | | |
| | | | |
| | | | |
Shares outstanding, beginning of year | | | | |
Shares outstanding, end of year | | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Invesco China Technology ETF (CQQQ)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
Net investment income (loss)(a) | | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(b) | | | | | |
Net Asset Value Total Return(c) | | | | | |
Market Price Total Return(c) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Net investment income (loss) | | | | | |
Portfolio turnover rate(d) | | | | | |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets includes income received from foreign withholding tax claims. Net investment income per share and the ratio of net investment income to average net assets excluding the foreign withholding tax claims are $0.16 and 0.44%, respectively. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.48 and 2.24%, respectively. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco FTSE RAFI Emerging Markets ETF (PXH)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(d) | | | | | |
Net Asset Value Total Return(e) | | | | | |
Market Price Total Return(e) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(g) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.63 and 3.19%, respectively. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco Global Clean Energy ETF (PBD)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco Global Water ETF (PIO)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(d) | | | | | |
Net Asset Value Total Return(e) | | | | | |
Market Price Total Return(e) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(f) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.35 and 0.92%, respectively. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco International BuyBack AchieversTM ETF (IPKW)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(d) | | | | | |
Net Asset Value Total Return(e) | | | | | |
Market Price Total Return(e) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(f) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.63 and 1.47%, respectively. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco MSCI Global Climate 500 ETF (KLMT)
| For the Period June 24, 2024(a) Through October 31, 2024 |
Per Share Operating Performance: | |
Net asset value at beginning of period | |
| |
Net realized and unrealized gain on investments | |
Total from investment operations | |
Distributions to shareholders from: | |
| |
Net asset value at end of period | |
Market price at end of period(c) | |
Net Asset Value Total Return(d) | |
Market Price Total Return(d) | |
Ratios/Supplemental Data: | |
Net assets at end of period (000’s omitted) | |
Ratio to average net assets of: | |
| |
| |
Portfolio turnover rate(g) | |
| Commencement of investment operations. |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| The net asset value total return from Fund Inception (June 26, 2024, the first day of trading on the exchange) to October 31, 2024 was 3.81%. The market price total return from Fund Inception to October 31, 2024 was 3.88%. |
| |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco MSCI Global Timber ETF (CUT)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
Expenses, prior to Waivers | | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco MSCI Green Building ETF (GBLD)
| | For the Period April 20, 2021(a) Through October 31, 2021 |
| | | |
Per Share Operating Performance: | | | | |
Net asset value at beginning of period | | | | |
| | | | |
Net realized and unrealized gain (loss) on investments | | | | |
Total from investment operations | | | | |
Distributions to shareholders from: | | | | |
| | | | |
| | | | |
| | | | |
Net asset value at end of period | | | | |
Market price at end of period(c) | | | | |
Net Asset Value Total Return(d) | | | | |
Market Price Total Return(d) | | | | |
Ratios/Supplemental Data: | | | | |
Net assets at end of period (000’s omitted) | | | | |
Ratio to average net assets of: | | | | |
| | | | |
Expenses, prior to Waivers | | | | |
| | | | |
Portfolio turnover rate(g) | | | | |
| Commencement of investment operations. |
| Based on average shares outstanding. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| The net asset value total return from Fund Inception (April 22, 2021, the first day of trading on the exchange) to October 31, 2021 was (2.74)%. The market price total return from Fund Inception to October 31, 2021 was (2.30)%. |
| |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco S&P Global Water Index ETF (CGW)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(e) | | | | | |
Net Asset Value Total Return(f) | | | | | |
Market Price Total Return(f) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(g) | | | | | |
| Based on average shares outstanding. |
| Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.62 and 1.18%, respectively. |
| Net gains (losses) on securities (both realized and unrealized) per share may not correlate with the Fund’s net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Fund’s investments. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights—(continued)
Invesco S&P International Developed Quality ETF (IDHQ)
| |
| | | | | |
Per Share Operating Performance: | | | | | |
Net asset value at beginning of year | | | | | |
| | | | | |
Net realized and unrealized gain (loss) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from: | | | | | |
| | | | | |
| | | | | |
Net asset value at end of year | | | | | |
Market price at end of year(c) | | | | | |
Net Asset Value Total Return(d) | | | | | |
Market Price Total Return(d) | | | | | |
Ratios/Supplemental Data: | | | | | |
Net assets at end of year (000’s omitted) | | | | | |
Ratio to average net assets of: | | | | | |
| | | | | |
| | | | | |
Portfolio turnover rate(e) | | | | | |
| Based on average shares outstanding. |
| Amount represents less than $0.005. |
| The mean between the last bid and ask prices. |
| Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
| Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
Invesco Exchange-Traded Fund Trust II
October 31, 2024
Invesco Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following portfolios:
| |
Invesco China Technology ETF (CQQQ) | |
Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) | "Dorsey Wright Developed Markets Momentum ETF" |
Invesco Dorsey Wright Emerging Markets Momentum ETF (PIE) | "Dorsey Wright Emerging Markets Momentum ETF" |
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) | "FTSE RAFI Developed Markets ex-U.S. ETF" |
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) | "FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF" |
Invesco FTSE RAFI Emerging Markets ETF (PXH) | "FTSE RAFI Emerging Markets ETF" |
Invesco Global Clean Energy ETF (PBD) | "Global Clean Energy ETF" |
Invesco Global Water ETF (PIO) | |
Invesco International BuyBack AchieversTM ETF (IPKW) | "International BuyBack AchieversTM ETF" |
Invesco MSCI Global Climate 500 ETF (KLMT) | "MSCI Global Climate 500 ETF" |
Invesco MSCI Global Timber ETF (CUT) | |
Invesco MSCI Green Building ETF (GBLD) | "MSCI Green Building ETF" |
Invesco S&P Global Water Index ETF (CGW) | "S&P Global Water Index ETF" |
Invesco S&P International Developed Quality ETF (IDHQ) | "S&P International Developed Quality ETF" |
Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on the following exchanges:
| |
| |
Dorsey Wright Developed Markets Momentum ETF | The Nasdaq Stock Market LLC |
Dorsey Wright Emerging Markets Momentum ETF | The Nasdaq Stock Market LLC |
FTSE RAFI Developed Markets ex-U.S. ETF | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | |
FTSE RAFI Emerging Markets ETF | |
| |
| The Nasdaq Stock Market LLC |
International BuyBack AchieversTM ETF | The Nasdaq Stock Market LLC |
MSCI Global Climate 500 ETF | |
| |
| |
S&P Global Water Index ETF | |
S&P International Developed Quality ETF | |
The market price of each Share may differ to some degree from a Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit”, as set forth in each Fund’s prospectus. Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”), though each Fund reserves the right to issue and redeem Creation Units in exchange for cash. Except when aggregated in Creation Units by authorized participants (“APs”), the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”):
| |
| FTSE China Incl A 25% Technology Capped Index |
Dorsey Wright Developed Markets Momentum ETF | Dorsey Wright® Developed Markets Technical Leaders Index |
Dorsey Wright Emerging Markets Momentum ETF | Dorsey Wright® Emerging Markets Technical Leaders Index |
FTSE RAFI Developed Markets ex-U.S. ETF | FTSE RAFITM Developed ex U.S. 1000 Index |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | FTSE RAFITM Developed ex U.S. Mid-Small 1500 Index |
FTSE RAFI Emerging Markets ETF | FTSE RAFITM Emerging Index |
| WilderHill New Energy Global Innovation Index |
| Nasdaq OMX Global Water IndexSM |
International BuyBack AchieversTM ETF | Nasdaq International BuyBack AchieversTM Index |
MSCI Global Climate 500 ETF | MSCI ACWI Select Climate 500 Index |
| MSCI ACWI IMI Timber Select Capped Index |
| MSCI Global Green Building Index |
S&P Global Water Index ETF | |
S&P International Developed Quality ETF | S&P Quality Developed ex-U.S. LargeMidCap Index |
NOTE 2—Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
A.
Security Valuation - Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded or, lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day NAV per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a Fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Capital Management LLC (the “Adviser”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange (“NYSE”), closing market quotations may become not representative of market value in the Adviser’s judgment ("unreliable"). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board-approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on
a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depositary receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, the potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer-specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price a Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, a Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Investment Transactions and Investment Income - Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to a Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations
and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of a Fund’s NAV and, accordingly, they reduce a Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
C.
Country Determination - For the purposes of presentation in the Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether each Fund’s Underlying Index has made a country determination and may include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Dividends and Distributions to Shareholders - Each Fund (except for China Technology ETF, MSCI Global Timber ETF and S&P Global Water Index ETF) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on the ex-dividend date. China Technology ETF, MSCI Global Timber ETF and S&P Global Water Index ETF each declares and pays dividends from net investment income, if any, to its shareholders annually and records such dividends on the ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on the ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.
E.
Federal Income Taxes - Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes - Each Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. Each Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. Each Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign tax reclaims on the Statements of Assets and Liabilities. There is no guarantee that a Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statements of Operations, and any related interest is included in Unaffiliated interest income. Each Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are excluded from the unitary management fee and are reflected on the Statements of Operations as Professional fees, if any. In the event tax refunds received by a Fund during the fiscal year exceed the foreign withholding taxes paid by a Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the fiscal year ended October 31, 2024, the Funds did not enter into any closing agreements.
G.
Expenses - Each Fund (except for MSCI Global Timber ETF and S&P Global Water Index ETF) has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and
other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of any Board member who is an “interested person” of the Trust or the Adviser (an "Interested Trustee"), or (iii) any other matters that directly benefit the Adviser).
MSCI Global Timber ETF and S&P Global Water Index ETF are responsible for all of their own expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, licensing fees related to their respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members and officers who are not “interested persons” (as defined in the 1940 Act) of the Trust or the Adviser (the “Independent Trustees”), expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser).
Expenses of the Trust that are directly identifiable to a specific Fund, including expenses that are excluded from a Fund’s unitary management fee (if applicable), are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund, including expenses that are excluded from a Fund’s unitary management fee (if applicable), are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
H.
Accounting Estimates - The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications - Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of their duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending - Each Fund may participate in securities lending and may loan portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. For Funds that participated in securities lending, dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income, net on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Invesco Advisers, Inc. (“Invesco”), an affiliate of the Adviser, serves as an affiliated securities lending agent for each Fund participating in the securities lending program. The Bank of New York Mellon (“BNYM”) also serves as a securities lending agent. To the extent a Fund utilizes Invesco as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may
act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the fiscal year ended October 31, 2024, each Fund (except for Dorsey Wright Developed Markets Momentum ETF, FTSE RAFI Developed Markets ex-U.S. ETF, FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF and International BuyBack AchieversTM ETF) had affiliated securities lending transactions with Invesco. Fees paid to Invesco for securities lending agent services, which are included in Securities lending income, net on the Statements of Operations, were incurred by each applicable Fund as listed below:
| |
| |
Dorsey Wright Emerging Markets Momentum ETF | |
FTSE RAFI Emerging Markets ETF | |
| |
| |
MSCI Global Climate 500 ETF(a) | |
| |
| |
S&P Global Water Index ETF | |
S&P International Developed Quality ETF | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
K.
Foreign Currency Translations - Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. Each Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statements of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.
Each Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which a Fund invests.
The performance of a Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause a Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that a Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of a Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statements of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
ADR and GDR Risk. Certain Funds may invest in American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing the underlying foreign securities directly in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks, because their values depend on the performance of the non-dollar denominated underlying foreign securities. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.
AP Concentration Risk. Only APs may engage in creation or redemption transactions directly with each Fund. Each Fund has a limited number of institutions that may act as APs, and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to each Fund and no other AP is able to step forward to create or redeem Creation Units, this may result in a significantly diminished trading market for Fund Shares, and Shares may be more likely to trade at a premium or discount to a Fund’s NAV and to face trading halts and/or delisting. Additionally, investments in non-U.S. securities may have lower trading volumes or could experience extended market closures or trading halts. To the extent that a Fund invests in non-U.S. securities, it may face increased risks that APs may not be able to effectively create or redeem Creation Units, or that the Shares may be halted and/or delisted.
China Investment Risk. Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; lack of publicly available information and difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole. Export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of additional tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers (or the threat thereof), including as a result of trade tensions between China and the United States, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by a Fund. Further, health events may cause uncertainty and volatility in the Chinese economy, especially in the consumer discretionary (leisure, retail, gaming, tourism), industrials, and commodities sectors. Additionally, any difficulties of the Public Company Accounting Oversight Board (“PCAOB”) to inspect audit work papers and practices of PCAOB-registered accounting firms in China with respect to their audit work of U.S. reporting companies may impose significant additional risks associated with investments in China.
Currency Risk. Because each Fund’s NAV is determined in U.S. dollars, a Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar. Generally, an increase in the value of the U.S. dollar against a foreign currency will reduce the value of a security denominated in that foreign currency, thereby decreasing a Fund’s overall NAV. Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions, causing an adverse impact on a Fund. As a result, investors have the potential for losses regardless of the length of time they intend to hold Shares.
Emerging Markets Investment Risk. For certain Funds, investments in the securities of issuers in emerging market countries involve risks often not associated with investments in the securities of issuers in developed countries. Securities in emerging markets may be subject to greater price fluctuations than securities in more developed markets. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. In addition, information about such companies may be less available and reliable. Emerging markets usually are subject to greater market volatility, political, social and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than are more developed markets. Securities law in many emerging market countries is relatively new and unsettled. Therefore, laws regarding foreign investment in emerging market securities, securities regulation, title to securities, and shareholder rights may change quickly and unpredictably, and the ability to bring and enforce actions, or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the enforcement of systems of taxation at federal, regional and local levels in emerging market countries may be inconsistent and subject to sudden change. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. In addition, lack of relevant data and reliable public information, including financial information, about securities in emerging markets may contribute to incorrect weightings and data and computational errors when a Fund’s index provider selects securities for inclusion in the Fund’s Underlying Index or rebalances the Underlying Index.
Environmental, Social and Governance ("ESG") Investing Strategy Risk. For certain Funds, the stocks of companies with favorable ESG attributes may underperform the stock market as a whole. As a result, a Fund may underperform other funds that do not screen companies based on ESG attributes. The criteria used to select companies for investment may result in such Funds investing in securities, industries or sectors that underperform the market as a whole or underperform other funds screened for ESG standards.
Equity Risk. Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that each Fund holds. In addition, equity risk includes the risk that investor sentiment toward one or more industries will become negative, resulting in those investors exiting their investments in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a company’s common stock may fall solely because of factors, such as an increase in production costs that negatively impact other companies in the same region, industry or sector of the market. A company’s common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company’s products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.
Foreign Investment Risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice, including recordkeeping standards, comparable to those applicable to domestic issuers. Foreign securities are also subject to the risks of expropriation, nationalization, political instability or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign securities also may be subject to dividend withholding or confiscatory taxes, currency blockage and/or transfer restrictions and higher transactional costs. To the extent a Fund invests in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns. From time to time, certain companies in which the Funds invest may operate in, or have dealings with, countries subject to sanctions or embargoes imposed by the U.S. Government and the United Nations and/or in countries the U.S. Government identified as state sponsors of terrorism. One or more of these companies may be subject to constraints under U.S. law or regulations that could negatively affect the company’s performance. Additionally, one or more of these companies could suffer damage to its reputation if the market identifies it as a company that invests or deals with countries that the U.S. Government identifies as state sponsors of terrorism or subjects to sanctions.
Geographic Concentration Risk. A Fund may from time to time have a substantial amount of its assets invested in securities of issuers located in a single country or a limited number of countries. Adverse economic, political or social conditions in those countries may therefore have a significant negative impact on a Fund’s investment performance. For example, a natural or other disaster could occur in a country or geographic region in which a Fund invests, which could affect the economy or particular business operations of companies in that specific country or geographic region and adversely impact the Fund’s investments in the affected region.
Index Risk. Unlike many investment companies that are "actively managed", each Fund is a "passive" investor and therefore does not utilize an investing strategy that seeks returns in excess of its respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. If a specific security is removed from an Underlying Index, its respective Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value. An Underlying Index may not contain the appropriate mix of securities for any particular economic cycle. Additionally, each Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to each Fund’s rebalance schedule. Further, unlike with an actively managed fund, the Adviser does not use techniques or defensive strategies designed to lessen the impact of periods of market volatility or market decline. This means that, based on certain market and economic conditions, a Fund’s performance could be lower than other types of funds with investment advisers that actively manage their portfolio assets to take advantage of market opportunities or defend against market events.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers operating in a single industry or industry group. To the extent that each Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the corresponding Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, each Fund may face more risks than if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which each Fund invests, may include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events;
obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
Market Risk. Securities in each Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in an Underlying Index. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises or other events could result in increased premiums or discounts to each Fund’s NAV.
Non-Correlation Risk. Each Fund’s return may not match the return of its corresponding Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its corresponding Underlying Index. In addition, the performance of each Fund and its corresponding Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its corresponding Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because China Technology ETF, Global Water ETF, International BuyBack AchieversTM ETF, MSCI Global Climate 500 ETF, MSCI Global Timber ETF, MSCI Green Building ETF and S&P Global Water Index ETF are non-diversified, and to the extent certain Funds become non-diversified, and can invest a greater portion of their respective assets in securities of individual issuers than can a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.
Portfolio Turnover Risk. Certain Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gains distributions to a Fund’s shareholders, a Fund will seek to utilize the in-kind creation and redemption mechanism to minimize the realization of capital gains to the extent possible.
REIT Risk. REITs are pooled investment vehicles that trade like stocks and invest substantially all of their assets in real estate and may qualify for special tax considerations. REITs are subject to certain risks inherent in the direct ownership of real estate, including without limitation, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers. Further, failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the REIT’s shareholders. In addition, REITs may have expenses, including advisory and administration expenses, and REIT shareholders will incur a proportionate share of the underlying expenses.
Risk of Green Building Investing. Companies involved in “green building” face many of the risk factors associated generally with the building and construction industry, including that such companies may be significantly affected by changes in government spending or regulation, zoning laws, economic conditions and world events, interest rates, taxation, real estate values and overbuilding. Such companies may be impacted by the supply and demand both for their specific products or services and for industrial sector products in general. In addition, such companies face risks specific to sustainable or “green” building, including: building costs may be more expensive for green buildings as compared to conventional buildings; green construction materials may not be readily available; the costs associated with obtaining third-party certification; and the failure to continue to meet certification standards. The technology and methods for green building are relatively new, and there is uncertainty surrounding the longevity and warranty of new products and/or the use of relatively untested materials. Moreover, there remains uncertainty about how the regulatory environment might evolve with respect to green building.
Sampling Risk. Certain Funds’ use of a representative sampling methodology may result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development with respect to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
Small- and Mid-Capitalization Company Risk. For certain Funds, investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Thematic Investing Risk. Certain Funds rely on the index provider for their respective Underlying Index to identify securities that provide exposure to specific environmental themes, as set forth in the Underlying Index methodology. A Fund’s performance may suffer if such securities are not correctly identified. Performance may also suffer if the securities included in an Underlying Index do not benefit from the development of the applicable environmental theme. Further, to the extent that an index provider evaluates ESG factors as part of an Underlying Index’s methodology, there is a risk that information used by the index provider to evaluate these ESG factors may not be readily available, complete or accurate. This could negatively impact the index provider’s ability to apply its ESG standards when compiling the Underlying Index, and which may negatively
impact a Fund’s performance. Performance may also be impacted by the inclusion of non-theme relevant exposures in an Underlying Index. There is no guarantee that an Underlying Index will reflect complete exposure to any particular environmental theme.
NOTE 3—Investment Advisory Agreements and Other Agreements
The Trust has entered into Investment Advisory Agreements with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.
Pursuant to an Investment Advisory Agreement, each Fund listed below accrues daily and pays monthly to the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser pays for substantially all expenses of the Funds, including the costs of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser). The unitary management fee is paid by each Fund listed below to the Adviser at the following annual rates:
| Unitary Management Fees (as a % of average daily net assets) |
| |
Dorsey Wright Developed Markets Momentum ETF | |
Dorsey Wright Emerging Markets Momentum ETF | |
FTSE RAFI Developed Markets ex-U.S. ETF | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | |
FTSE RAFI Emerging Markets ETF | |
| |
| |
International BuyBack AchieversTM ETF | |
MSCI Global Climate 500 ETF | |
| |
S&P International Developed Quality ETF | |
| Effective January 5, 2024, the Fund’s unitary management fee was reduced from 0.70% to 0.65%. |
Pursuant to another Investment Advisory Agreement, each of the following Funds accrues daily and pays monthly to the Adviser an annual fee equal to a percentage of its average daily net assets as follows:
| Management Fees (as a % of average daily net assets) |
| |
S&P Global Water Index ETF | |
The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each of MSCI Global Timber ETF and S&P Global Water Index ETF, pursuant to which the Adviser has contractually agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses, if any, and extraordinary expenses, including proxy expenses (except for such proxies related to: (i) changes to the Investment Advisory Agreement, (ii) the election of an Interested Trustee, or (iii) any other matters that directly benefit the Adviser)) of each such Fund from exceeding the percentage of the Fund’s average daily net assets per year (the “Expense Cap”) shown in the table below through at least August 31, 2026. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2026. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for S&P Global Water Index ETF.
| |
| |
S&P Global Water Index ETF | |
Further, through at least August 31, 2026, the Adviser has contractually agreed to waive the management fee payable by each Fund in an amount equal to the lesser of: (i) 100% of the net advisory fees earned by the Adviser or an affiliate of the Adviser that are attributable to the Fund’s investments in money market funds that are managed by affiliates of the Adviser and other
funds (including ETFs) managed by the Adviser or affiliates of the Adviser or (ii) the management fee available to be waived. This waiver does not apply to a Fund’s investment of cash collateral received for securities lending. There is no guarantee that the Adviser will extend the waiver of these fees past that date. This waiver is not subject to recapture by the Adviser.
For the fiscal year ended October 31, 2024, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
| |
Dorsey Wright Developed Markets Momentum ETF | |
Dorsey Wright Emerging Markets Momentum ETF | |
FTSE RAFI Developed Markets ex-U.S. ETF | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | |
FTSE RAFI Emerging Markets ETF | |
| |
| |
International BuyBack AchieversTM ETF | |
MSCI Global Climate 500 ETF(a) | |
| |
| |
S&P Global Water Index ETF | |
S&P International Developed Quality ETF | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
The fees waived and/or expenses borne by the Adviser for MSCI Global Timber ETF and S&P Global Water Index ETF, pursuant to the Expense Cap, are subject to recapture by the Adviser for up to three years from the date the fees were waived or the expenses were incurred, but no recapture payment will be made by the Funds if it would result in the Funds exceeding (i) the Expense Cap or (ii) the expense cap in effect at the time the fees and/or expenses subject to recapture were waived and/or borne by the Adviser.
For the following Fund, the amounts available for potential recapture by the Adviser and the expiration schedule as of October 31, 2024 are as follows:
| Total Potential Recapture Amounts | Potential Recapture Amounts Expiring |
| | | |
| | | | |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement on behalf of each Fund with the following entities (each, a “Licensor”):
| |
| |
Dorsey Wright Developed Markets Momentum ETF | Dorsey Wright & Associates, LLC |
Dorsey Wright Emerging Markets Momentum ETF | Dorsey Wright & Associates, LLC |
FTSE RAFI Developed Markets ex-U.S. ETF | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | |
FTSE RAFI Emerging Markets ETF | |
| WilderHill New Energy Finance, LLC |
| |
International BuyBack AchieversTM ETF | |
MSCI Global Climate 500 ETF | |
| |
| |
S&P Global Water Index ETF | S&P Dow Jones Indices LLC |
S&P International Developed Quality ETF | S&P Dow Jones Indices LLC |
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement
with the Adviser. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.
The Trust has entered into service agreements whereby BNYM, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
For the fiscal year ended October 31, 2024, the Funds incurred brokerage commissions with Invesco Capital Markets, Inc. ("ICMI"), an affiliate of the Adviser and Distributor, for portfolio transactions executed on behalf of the Funds, as listed below:
| |
Dorsey Wright Developed Markets Momentum ETF | |
Dorsey Wright Emerging Markets Momentum ETF | |
FTSE RAFI Developed Markets ex-U.S. ETF | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | |
FTSE RAFI Emerging Markets ETF | |
| |
| |
International BuyBack AchieversTM ETF | |
MSCI Global Climate 500 ETF(a) | |
| |
| |
S&P Global Water Index ETF | |
S&P International Developed Quality ETF | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
Portfolio transactions with ICMI that have not settled at period-end, if any, are shown in the Statements of Assets and Liabilities under the receivable caption Investments sold - affiliated broker and/or payable caption Investments purchased - affiliated broker.
NOTE 4—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 — Prices are determined using quoted prices in an active market for identical assets.
Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | | | |
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
| | | | |
Dorsey Wright Developed Markets Momentum ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
Dorsey Wright Emerging Markets Momentum ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
FTSE RAFI Emerging Markets ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
International BuyBack AchieversTM ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
MSCI Global Climate 500 ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
S&P Global Water Index ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
S&P International Developed Quality ETF | | | | |
Investments in Securities | | | | |
Common Stocks & Other Equity Interests | | | | |
| | | | |
| | | | |
NOTE 5—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023:
| | |
| | |
| | |
Dorsey Wright Developed Markets Momentum ETF | | |
Dorsey Wright Emerging Markets Momentum ETF | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | |
FTSE RAFI Emerging Markets ETF | | |
| | |
| | |
International BuyBack AchieversTM ETF | | |
MSCI Global Climate 500 ETF** | | |
| | |
| | |
S&P Global Water Index ETF | | |
S&P International Developed Quality ETF | | |
| Includes short-term capital gain distributions, if any. |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
Tax Components of Net Assets at Fiscal Year-End:
| Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)- Investments | Net Unrealized Appreciation (Depreciation)- Foreign Currencies and Foreign Taxes | Capital Loss Carryforwards | Shares of Beneficial Interest | |
| | | | | | | | |
Dorsey Wright Developed Markets Momentum ETF | | | | | | | | |
Dorsey Wright Emerging Markets Momentum ETF | | | | | | | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | | | | | | | |
| Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)- Investments | Net Unrealized Appreciation (Depreciation)- Foreign Currencies and Foreign Taxes | Capital Loss Carryforwards | Shares of Beneficial Interest | |
FTSE RAFI Developed Markets ex-U.S. Small- Mid ETF | | | | | | | | |
FTSE RAFI Emerging Markets ETF | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
International BuyBack AchieversTM ETF | | | | | | | | |
MSCI Global Climate 500 ETF | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
S&P Global Water Index ETF | | | | | | | | |
S&P International Developed Quality ETF | | | | | | | | |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Funds have capital loss carryforwards as of October 31, 2024, as follows:
| | |
| | | |
| | | |
Dorsey Wright Developed Markets Momentum ETF | | | |
Dorsey Wright Emerging Markets Momentum ETF | | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | | |
FTSE RAFI Emerging Markets ETF | | | |
| | | |
| | | |
International BuyBack AchieversTM ETF | | | |
MSCI Global Climate 500 ETF | | | |
| | | |
| | | |
S&P Global Water Index ETF | | | |
S&P International Developed Quality ETF | | | |
| Capital loss carryforwards are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 6—Investment Transactions
For the fiscal year ended October 31, 2024, the cost of securities purchased and the proceeds from sales of securities (other than short-term securities, U.S. Government obligations, money market funds and in-kind transactions, if any) were as follows:
| | |
| | |
Dorsey Wright Developed Markets Momentum ETF | | |
Dorsey Wright Emerging Markets Momentum ETF | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | |
FTSE RAFI Emerging Markets ETF | | |
| | |
| | |
International BuyBack AchieversTM ETF | | |
MSCI Global Climate 500 ETF(a) | | |
| | |
| | |
S&P Global Water Index ETF | | |
S&P International Developed Quality ETF | | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
For the fiscal year ended October 31, 2024, in-kind transactions associated with creations and redemptions were as follows:
| | |
| | |
Dorsey Wright Developed Markets Momentum ETF | | |
Dorsey Wright Emerging Markets Momentum ETF | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | |
FTSE RAFI Emerging Markets ETF | | |
| | |
| | |
International BuyBack AchieversTM ETF | | |
MSCI Global Climate 500 ETF(a) | | |
| | |
| | |
S&P Global Water Index ETF | | |
S&P International Developed Quality ETF | | |
| For the period June 24, 2024 (commencement of investment operations) through October 31, 2024. |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |
| | | | |
Dorsey Wright Developed Markets Momentum ETF | | | | |
Dorsey Wright Emerging Markets Momentum ETF | | | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | | | |
FTSE RAFI Emerging Markets ETF | | | | |
| | | | |
| | | | |
| Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |
International BuyBack AchieversTM ETF | | | | |
MSCI Global Climate 500 ETF | | | | |
| | | | |
| | | | |
S&P Global Water Index ETF | | | | |
S&P International Developed Quality ETF | | | | |
NOTE 7—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of redemption in-kind, passive foreign investment companies and foreign currency transactions, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended October 31, 2024, the reclassifications were as follows:
| Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest |
| | | |
Dorsey Wright Developed Markets Momentum ETF | | | |
Dorsey Wright Emerging Markets Momentum ETF | | | |
FTSE RAFI Developed Markets ex-U.S. ETF | | | |
FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | | |
FTSE RAFI Emerging Markets ETF | | | |
| | | |
| | | |
International BuyBack AchieversTM ETF | | | |
MSCI Global Climate 500 ETF | | | |
| | | |
| | | |
S&P Global Water Index ETF | | | |
S&P International Developed Quality ETF | | | |
NOTE 8—Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for each Fund except MSCI Global Timber ETF and S&P Global Water Index ETF. Interested Trustees do not receive any Trustees’ fees.
The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of their compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco ETFs. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to a Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Shares are issued and redeemed by each Fund only in Creation Units as discussed in Note 1. Only APs are permitted to purchase or redeem Creation Units from the Funds.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an AP, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the AP to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the AP’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
At a meeting held on December 13, 2024, the Board of Trustees approved changes to the name, investment objective, underlying index, principal investment strategy and annual unitary management fee for the Funds listed in the table below. The investment objective of each Fund will change to track the investment results (before fees and expenses) of the New Underlying Index, and each Fund’s principal investment strategy will change to generally invest at least 90% of its total assets in the components of its respective New Underlying Index.
These changes will be effective on March 24, 2025.
| | Current Unitary Management Fee (as a % of average daily net assets) | | | New Unitary Management Fee (as a % of average daily net assets) |
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | FTSE RAFITM Developed ex-U.S. 1000 Index | | Invesco RAFI Developed Markets ex-U.S. ETF | RAFITM Fundamental Select Developed ex US 1000 Index | |
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | FTSE RAFITM Developed ex-U.S. Mid Small 1500 Index | | Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF | RAFITM Fundamental Select Developed ex US 1500 Index | |
Invesco FTSE RAFI Emerging Markets ETF | FTSE RAFITM Emerging Index | | Invesco RAFI Emerging Markets ETF | RAFITM Fundamental Select Emerging Markets 350 Index | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Exchange-Traded Fund Trust II and Shareholders of each of the fourteen Funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (fourteen of the funds constituting Invesco Exchange-Traded Fund Trust II, hereafter collectively referred to as the “Funds”) as of October 31, 2024, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2024, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
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Invesco China Technology ETF (1) | Invesco Global Water ETF (1) |
Invesco Dorsey Wright Developed Markets Momentum ETF (1) | Invesco International BuyBack AchieversTM ETF (1) |
Invesco Dorsey Wright Emerging Markets Momentum ETF (1) | Invesco MSCI Global Climate 500 ETF (2) |
Invesco FTSE RAFI Developed Markets ex-U.S. ETF (1) | Invesco MSCI Global Timber ETF (1) |
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (1) | Invesco MSCI Green Building ETF (1) |
Invesco FTSE RAFI Emerging Markets ETF (1) | Invesco S&P Global Water Index ETF (1) |
Invesco Global Clean Energy ETF (1) | Invesco S&P International Developed Quality ETF (1) |
(1) Statement of operations for the year ended October 31, 2024 and statement of changes in net assets for the years ended October 31, 2024 and 2023
(2) Statement of operations and statement of changes in net assets for the period June 24, 2024 (commencement of investment operations) through October 31, 2024
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
December 23, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| | | Corporate Dividends Received Deduction* | | |
Invesco China Technology ETF | | | | | |
Invesco Dorsey Wright Developed Markets Momentum ETF | | | | | |
Invesco Dorsey Wright Emerging Markets Momentum ETF | | | | | |
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | | | | | |
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | | | | |
Invesco FTSE RAFI Emerging Markets ETF | | | | | |
Invesco Global Clean Energy ETF | | | | | |
| | | | | |
Invesco International BuyBack AchieversTM ETF | | | | | |
Invesco MSCI Global Climate 500 ETF | | | | | |
Invesco MSCI Global Timber ETF | | | | | |
Invesco MSCI Green Building ETF | | | | | |
Invesco S&P Global Water Index ETF | | | | | |
Invesco S&P International Developed Quality ETF | | | | | |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
The Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The foreign source income and foreign taxes paid per share are as follows:
| | Foreign Source Income Per Share |
Invesco Dorsey Wright Developed Markets Momentum ETF | | |
Invesco Dorsey Wright Emerging Markets Momentum ETF | | |
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | | |
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF | | |
Invesco FTSE RAFI Emerging Markets ETF | | |
Invesco International BuyBack AchieversTM ETF | | |
Invesco S&P International Developed Quality ETF | | |
Approval of Investment Advisory Contracts
At a meeting held on April 18, 2024, the Board of Trustees of the Invesco Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the Investment Advisory Agreement between Invesco Capital Management LLC (the “Adviser”) and the Trust for Invesco MSCI Global Climate 500 ETF (the “Fund”).
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the proposed unitary advisory fee for the Fund and comparisons to amounts paid by other comparable registered investment companies, (iii) the extent to which economies of scale may be realized as the Fund grows and whether the fee levels reflect any possible economies of scale for the benefit of Fund shareholders, and (iv) any further benefits to be realized by the Adviser or its affiliates from the Adviser’s relationship with the Fund.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions to be performed by the Adviser for the Fund, including the identity of the persons who will be responsible for the day-to-day management of the Fund, and they considered the quality of services provided by the Adviser to other exchange-traded funds (“ETFs”). The Trustees noted that the portfolio managers of the Fund also manage other ETFs on behalf of the Adviser that are overseen by the Board and that the Board is familiar with the background and experience of the portfolio managers of the Fund. The Trustees also noted other information the Board received and considered in connection with its March 14, 2024 and April 18, 2024 meetings describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd. The Trustees reviewed matters related to the Adviser’s portfolio transaction policies and procedures. Because the Fund had not yet commenced operations, the Trustees noted that no performance information for the Fund could be provided.
The Trustees considered the services to be provided by the Adviser in its oversight of the Fund’s administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function for the other ETFs managed by the Adviser and that was expected to be provided for the Fund.
Based on its review, the Board concluded that the nature, extent and quality of the services to be provided by the Adviser to the Fund under the Investment Advisory Agreement were expected to be appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on the Fund’s proposed unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. (“Lipper”) databases on the median net expense ratios of comparable passive ETFs, open-end (non-ETF) index funds, open-end (non-ETF) actively managed funds and Adviser-identified select peer funds. The Trustees noted that the proposed annual advisory fee to be charged to the Fund was a unitary fee, and that the Adviser has agreed to pay all other operating expenses of the Fund except for brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses, costs incurred in connection with proxies (except certain proxies) and other extraordinary expenses. The Trustees noted the Fund’s proposed unitary advisory fee as compared to the median net expense ratio of its Lipper peer groups and select peer group as shown below:
| Passive ETF Peer Group (Number of Peers) | Open-End Index Fund Peer Group (Number of Peers) | Open-End Active Fund Peer Group (Number of Peers) | Select Peer Group (Number of Peers) |
Invesco MSCI Global Climate 500 ETF | | | | |
Based on all of the information provided, the Board concluded that the Fund’s proposed unitary advisory fee was reasonable and appropriate in light of the services to be provided, the nature of the indices, the distinguishing factors of the Fund, and the administrative, operational and management oversight services to be provided by the Adviser and the related costs in providing such services.
In conjunction with their review of the unitary advisory fee, the Trustees considered that the Adviser did not provide a profitability analysis for the Adviser in managing the Fund because the Fund had not yet commenced operations. However, the Trustees noted other information the Board received and considered in connection with its March 14, 2024 and April 18, 2024 meetings regarding the Adviser’s overall profitability from its relationship with other ETFs for which it serves as investment adviser.
Approval of Investment Advisory Contracts—(continued)
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale may be realized as the Fund grows and whether fee levels reflect economies of scale for the benefit of the Fund’s shareholders. The Trustees noted that any reduction in fixed costs associated with the management of the Fund would be enjoyed by the Adviser, but a unitary advisory fee provides a level of certainty in expenses for the Fund. The Board considered whether the proposed unitary advisory fee rate for the Fund was reasonable in relation to the proposed services and product strategy of the Fund, and it concluded that the unitary advisory fee rate was reasonable and appropriate.
Fall-out Benefits. The Trustees considered that the Adviser identified no additional benefits that it will receive from its relationship with the Fund, and noted that the Adviser will not be a party to any soft dollar, commission recapture or directed brokerage arrangements with respect to the Fund. The Trustees considered benefits to be received by affiliates of the Adviser that may be directly or indirectly attributed to the Adviser’s relationship with the Fund, including brokerage fees, advisory fees from affiliated money market cash management vehicles and fees as the Fund’s securities lending agent. The Trustees also considered that Invesco Distributors, Inc., an affiliate of the Adviser, will serve as the Fund’s distributor and will be paid a distribution fee by the Adviser. The Board concluded that the Fund’s proposed unitary advisory fee was reasonable, taking into account any ancillary benefits to be received by affiliates of the Adviser.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for the Fund. No single factor was determinative in the Board’s analysis.
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory Contracts section of this report.
©2024 Invesco Capital Management LLC
3500 Lacey Road, Suite 700
Downers Grove, IL 60515
P-INTL-NCSR
invesco.com/ETFs
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Item 10. Remuneration Paid to Directors, Officers, and Others for Open-End Management Investment Companies.
This information is filed under Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
This information is filed under Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Board that would require disclosure herein.
Item 16. Controls and Procedures.
(a) Based on their evaluation of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report, the Registrant's PEO and PFO have concluded that such disclosure controls and procedures are effective.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activity for Closed-End Management Investment Companies.
Item 18. Recovery of Erroneously Awarded Compensation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Invesco Exchange-Traded Fund Trust II
By: /s/ Brian Hartigan .
Name: Brian Hartigan
Title:Principal Executive Officer
Date: January 3, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Brian Hartigan ..
Name:Brian Hartigan
Title:Principal Executive Officer
Date: January 3, 2025
By: /s/ Kelli Gallegos ____
Name:Kelli Gallegos
Title:Principal Financial Officer
Date:January 3, 2025
