UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22148
Invesco Actively Managed Exchange-Traded Fund Trust
(Exact name of registrant as specified in charter)
3500 Lacey Road
Downers Grove, IL 60515
(Address of principal executive offices) (Zip code)
Daniel E. Draper
President
3500 Lacey Road
Downers Grove, IL 60515
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-983-0903
Date of fiscal year end: October 31
Date of reporting period: October 31, 2019
FormN-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Registrant’s annual report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 is as follows:
Invesco Annual Report to Shareholders
October 31, 2019
PSR | Invesco Active U.S. Real Estate ETF | |
PSMB | Invesco Balanced Multi-Asset Allocation ETF | |
PSMC | Invesco Conservative Multi-Asset Allocation ETF | |
PSMG | Invesco Growth Multi-Asset Allocation ETF | |
PSMM | Invesco Moderately Conservative Multi-Asset Allocation ETF | |
PHDG | Invesco S&P 500® Downside Hedged ETF | |
GTO | Invesco Total Return Bond ETF | |
GSY | Invesco Ultra Short Duration ETF | |
VRIG | Invesco Variable Rate Investment Grade ETF |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold accounts through a financial intermediary, you may contact your financial intermediary to enroll in electronic delivery. Please note that not all financial intermediaries may offer this service.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
The Market Environment | 3 | |||
Manager’s Analysis | 5 | |||
Schedules of Investments | ||||
24 | ||||
26 | ||||
28 | ||||
30 | ||||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | 32 | |||
34 | ||||
40 | ||||
48 | ||||
58 | ||||
Statements of Assets and Liabilities | 64 | |||
Statements of Operations | 66 | |||
Statements of Changes in Net Assets | 68 | |||
Financial Highlights | 72 | |||
Notes to Financial Statements | 81 | |||
Report of Independent Registered Public Accounting Firm | 101 | |||
Fund Expenses | 103 | |||
Tax Information | 105 | |||
Proxy Results | 107 | |||
Trustees and Officers | 108 |
| 2 |
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Domestic Equity
The fiscal year began with noticeable market volatility in the final few months of 2018, which continued throughyear-end, as US equity markets suffered a sharpsell-off due to ongoing trade concerns between the US and China, fears of a global economic slowdown and lower oil prices from a supply glut. Oil prices plummeted from near $64 per barrel in early November 2018 to around $45 per barrel in late December 2018.1 In this environment, there was a flight to safety, as investors fled to more defensive areas of the markets, such as health care, utilities and US Treasuries. After raising interest rates in September 2018, the US Federal Reserve (the Fed) raised interest rates one time during the fiscal year: in December 2018.2
Following a sharpsell-off during the fourth quarter of 2018, equity markets rebounded in the first quarter of 2019, fueled by optimism about a potentialUS-China trade deal and the Fed’s indication that there would be no interest rate hikes in 2019, a surprising shift in monetary policy. The Fed’s more accommodative stance provided a supportive environment for equities and fixed income, even as US economic data were mixed and overseas growth appeared to be slowing. Against this backdrop, the S&P 500 Index posted its best first quarter returns since 1998.
Although the S&P 500 Index posted modest gains for the second quarter of 2019, the US stock market experienced increased volatility. After four consecutive months of rising stock markets, the market sold off in May 2019, along with bond yields and oil prices, as investors weighed the impact of the lingering trade war between the US and China, as well as potential tariffs imposed on Mexico. In addition, economic data showed a slowing domestic and global economy.
Key issues that concerned investors in the second quarter of 2019 carried over into the third quarter. TheUS-China trade conflict worried investors and stifled business investment, even as the Fed cut interest rates by 0.25% in July and again in September 2019. This environment, combined with evidence of slowing global economic growth, fueled market volatility in August 2019. The US Treasury yield curve inverted several times, increasing fears of a possible US recession. As a result, August saw increased risk aversion, with investors crowding into asset classes perceived as safe havens, such as US Treasuries and gold. However, the Fed’s accommodative tone provided some support for risk assets.
In October 2019, optimism that phase one of aUS-China trade deal would be completed, a delay in the Brexit agreement until January 2020 and better-than-expected third-quarter corporate earnings results, helped send risk assets higher. During its October meeting, the Fed cut interest rates again by 0.25% based on business investment and exports remaining weak. Despite increased market volatility, mostUS-based equity indexes produced modest to strong returns for the fiscal year.
1 | Source: Bloomberg |
2 | Source: US Federal Reserve |
Fixed Income
Throughout the fiscal year, US economic data remained supportive of continued economic expansion as 2019 3rd quarter GDP grew 1.9%. The US economy continued to add jobs, pushing the unemployment rate to 3.6% at the close of the fiscal year, while inflation remained subdued.1Against this backdrop, the US Federal Reserve (the Fed) lowered the federal funds target rate from a range of 2.00% to 2.25% at the start of the reporting period to a range of 1.50% to 1.75% at the close of the reporting period. This was accomplished with one 0.25% rate hike in December 2018, followed by three 0.25% rate cuts in July, September, and October 2019.2 Working against these positive developments, however, were global macroeconomic headwinds in the form of geopolitical trade tension,sub-optimal inflation, and the lingering unknown of Brexit — the decision by UK voters to leave the European Union. These headwinds, coupled with continued low US inflation, could encourage further Fed rate cuts in the near-term. These actions continued to drive overseas investments into higher yielding segments of the fixed income markets.
The10-year US Treasury yield continued to move upward at the start of the fiscal year and spiked in November 2018 due to continued strength of the global economy, increased risk of inflation and the high probability of additional Fed rate hikes throughout the fiscal year. However, elevated volatiltiy levels in December led to a severerisk-off tone in the markets driving US Treasury yields lower. Throughout the remainder of the fiscal year US Treasury yields continued to decline as the Fed adopted a more dovish stance and continued geopolitical uncertainty forced investors to seek higher quality fixed income instruments. The10-year US Treasury yield ended the reporting period at 1.69%, 145 basis points lower than at the beginning of the fiscal year.3 (A basis point is oneone-hundredth of a percentage point.)
The broader bond market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, gained 11.51% for the fiscal year. Strong performance for the index was largely attributable to the sharp decline in US Treasury yields. The four primary sectors of the Bloomberg Barclays U.S. Aggregate Bond Index — government-related, corporate, securitized and treasury — posted positive returns for the fiscal year.Out-of-index exposure, such as high yield and US dollar-denominated emerging market (EM) corporate debt, provided gains despite concerns over global growth, a volatile geopolitical environment and a series of juxtaposed Fed actions. Helping to support returns in high yield and US dollar-denominated EM corporate debt were very accommodative central bank policies.
1 | Bureau of Labor Statistics |
2 | US Federal Reserve |
3 | US Treasury Department |
| 3 |
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The Market Environment (continued)
Global Equity
The fiscal year began with global equity markets, particularly the US, declining sharply at the end of 2018 amid rising interest rates, a flattening US Treasury yield curve, signaling a possible recession, and concerns that higher inflation could result in a more restrictive monetary policy. Investors also had concerns over the Brexit negotiations, ongoing trade tensions between the US and China, declining oil prices and fears of slowing economic growth, particularly in the eurozone.
After a relatively calm start at the beginning of 2019, global equity markets faced greater volatility in the second quarter, hampered by ongoing US and China trade issues, potential for new tariffs and slowing global economic growth. Global equity markets, particularly China, declined sharply in May 2019, ending a four-month rally. Trade and tariff issues, which were not limited to the US and China, clouded the outlook for many global economies. Disagreement within the UK about its withdrawal from the European Union increased uncertainty for the UK and eurozone economies. Following better performance in June, most global equity markets managed modest positive returns for the second quarter of 2019, with developed markets generally outperforming emerging markets. China was an exception, declining during the second quarter.
Weakening global economic data and the ongoing US and China trade conflict contributed to higher market volatility in the third quarter of 2019. During the third quarter, data released showed slowing manufacturing activity and declining business investment, which was evidence that trade tensions were stifling economic growth across both developed and emerging markets. Global recession concerns caused a sharp equitysell-off in August 2019 as investors crowded into asset classes perceived as safe havens, including US Treasuries and gold. In September 2019, both the US Federal Reserve and European Central Bank cut interest rates, providing a measure of support for risk assets. Growing optimism about a potential trade deal between the US and China also boosted equities in September. However, except for the US and Japan, performance in most regions declined during the third quarter. Uncertainty about the UK’s withdrawal from the European Union continued to weigh on UK and European equities, while political and trade issues affected areas of Latin America and Asia.
Global equity markets gained in October 2019 amid several positive catalysts, including a US interest rate cut, optimism surrounding US and China trade negotiations, and a raft of upbeat corporate results. The UK equity market provided a flat return during October and while domestic politics continued to dominate the region, European markets made modest gains. October was also a positive month for emerging equity markets with all regions recording gains. Despite increased market volatility, global equity indexes, in both developed and emerging markets, ended the fiscal year in positive territory.
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PSR | Manager’s Analysis | |
Invesco Active U.S. Real Estate ETF (PSR) |
The Invesco Active U.S. Real Estate ETF (the “Fund”) is an actively managed exchange-traded fund whose investment objective is to achieve high total return through growth of capital and current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in securities of companies that are principally engaged in the U.S. real estate industry and included within the FTSE NAREIT All Equity REITs Index (the “Benchmark Index”). The Fund considers a company to be principally engaged in the U.S. real estate industry if it: (i) derives 50% of its revenues or profit from ownership, leasing, management, construction, financing or sale of U.S. real estate; or (ii) has at least 50% of the value of its assets invested in U.S. real estate. The Fund plans to invest principally in equity real estate investment trusts (“REITs”). The Fund also may invest in real estate operating companies (“REOCs”), as well as securities of other companies principally engaged in the U.S. real estate industry. In constructing the portfolio, Invesco Advisers, Inc., the Fund’ssub-adviser, analyzes quantitative and statistical metrics to identify attractively priced securities.
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 25.90%. On a net asset value (“NAV”) basis, the Fund returned 25.82%. During the same time period, the Benchmark Index returned 25.32%.
The Fund’s outperformance relative to the Benchmark Index during the period is primarily the result of security selection. In particular, security selection in specialty, infrastructure, regional malls and health care REITs were key contributors to relative performance. A combination of security selection and underweight exposure in shopping centers and overweight exposure in self storage and industrial REITs also contributed to Fund performance.
For the fiscal year ended October 31, 2019, within specialty REITs, not holding exposure in CoreCivic, Inc. and GEO Group Inc. helped relative returns. Within infrastructure, not holding exposure in Uniti Group Inc. also contributed to relative returns for the period. Within regional malls, holding underweight exposures in Macerich Co. (no longer held at fiscal year-end) was a key contributor to relative performance. Within health care REITs, not holding exposure to Senior Housing Properties Trust was beneficial to relative performance for the period.
Detractors from the Fund’s relative return included security selection in office and diversified REITs; in particular, overweight exposure in the office REITs SL Green Realty Corp. and Empire State Realty Trust, Inc. and not owning the diversified REIT W.P. Carey Inc. detracted from relative performance. Additionally, overweight exposure in timber and underweight exposure in data centers detracted from the Fund’s relative performance.
Property Type and Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Infrastructure REITs | 15.13 | |||
Health Care | 10.85 | |||
Industrial | 10.18 | |||
Apartments | 10.05 | |||
Office | 8.75 | |||
Data Centers | 6.65 | |||
Free Standing | 5.90 | |||
Specialty | 5.38 | |||
Manufactured Homes | 4.31 | |||
Lodging Resorts | 4.25 | |||
Regional Malls | 4.23 | |||
Shopping Centers | 3.79 | |||
Single Family Homes | 3.50 | |||
Diversified | 3.28 | |||
Self Storage | 2.30 | |||
Timber REITs | 1.42 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.03 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Security | ||||
American Tower Corp. | 7.73 | |||
Crown Castle International Corp. | 4.41 | |||
Prologis, Inc. | 4.40 | |||
Simon Property Group, Inc. | 4.23 | |||
Equinix, Inc. | 3.92 | |||
SBA Communications Corp., Class A | 2.99 | |||
Welltower, Inc. | 2.82 | |||
Equity Residential | 2.57 | |||
Realty Income Corp. | 2.39 | |||
Essex Property Trust, Inc. | 2.32 | |||
Total | 37.78 |
* | Excluding money market fund holdings. |
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Invesco Active U.S. Real Estate ETF (PSR)(continued)
Growth of a $10,000 Investment
Fund Performance History as of October 31, 2019
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception | |||||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||||
FTSE NAREIT All Equity REITs Index | 25.32 | % | 11.35 | % | 38.06 | % | 9.41 | % | 56.76 | % | 14.24 | % | 278.46 | % | 18.63 | % | 548.45 | % | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 25.82 | 11.27 | 37.75 | 9.20 | 55.30 | 13.70 | 261.06 | 17.87 | 504.72 | |||||||||||||||||||||||||||||||
Market Price Return | 25.90 | 11.23 | 37.61 | 9.18 | 55.17 | 13.67 | 260.23 | 17.93 | 507.82 |
Fund Inception: November 20, 2008
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, as supplemented to date, the Fund’s expense ratio of 0.35% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Index and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
| 6 |
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PSMB | Manager’s Analysis | |
Invesco Balanced Multi-Asset Allocation ETF (PSMB) |
The Invesco Balanced Multi-Asset Allocation ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks to provide current income and capital appreciation. The Fund is a “fund of funds,” meaning that it invests its assets primarily in other ETFs (“Underlying ETFs”), rather than in securities of individual companies. Under normal circumstances, most of those Underlying ETFs will be ETFs that are advised by the Fund’s adviser or one of its affiliates (the “Invesco ETFs”). However, at times the Fund also may invest a portion of its assets in Underlying ETFs that are advised by unaffiliated advisers. The Fund and the Invesco ETFs are part of the same group of investment companies. The Fund seeks to achieve its investment objective by allocating its assets using a balanced investment style that seeks to maximize the benefits of diversification, which focuses on investing portions of Fund assets both in Underlying ETFs that invest primarily in fixed-income securities (“Fixed Income ETFs”) as well as in Underlying ETFs that invest primarily in equity securities (“Equity ETFs”).
Invesco Advisers, Inc., the Fund’s sub-adviser, uses the following investment process to construct the Fund’s portfolio: (1) a strategic allocation across broad asset classes (i.e., equities and fixed-income securities) and particular investment factors within those classes (e.g., for fixed-income securities, exposure to domestic, international, corporate, government, high-yield and investment grade bonds; for equity securities, exposure to domestic and international issuers); (2) selection of Underlying ETFs that best represent those broad asset classes and factor exposures, based on a comprehensive quantitative and qualitative criteria (such as management experience and structure, investment process, performance and risk metrics); (3) determination by the Fund’s sub-adviser of target weightings in each Underlying ETF in a manner that seeks to manage the amount of active risk contributed by each Underlying ETF; and (4) ongoing monitoring of the Fund’s performance and risk. The Fund typically holds a limited number of securities (generally10-20).
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 11.37%. On a net asset value (“NAV”) basis, the Fund returned 11.57%. During the same time period, the Custom Invesco Balanced Allocation ETF Index (the “Benchmark Index”) returned 12.52%, while the S&P 500® Index returned 14.33%.
The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the period primarily because of the Fund’s higher relative exposure to variable rate fixed income securities. Diversification within international equities also detracted from relative performance. During the same time period, the Benchmark Index posted a positive return driven by a larger allocation to longer duration fixed income securities.
For the fiscal year ended October 31, 2019, from an asset class perspective, exposure to U.S. equities through Underlying ETFs
were the largest contributors to absolute returns, led by the investment factors growth and low volatility. Diversification across sub-asset classes within fixed income also contributed to relative results. In contrast, diversification in emerging market equities and U.S. small cap equities detracted from performance.
Positions that contributed most significantly to the Fund’s absolute return included the Invesco S&P 500 GARP ETF (formerly, Invesco Russell Top 200 Pure Growth ETF) (no longer held at fiscalyear-end), the Invesco S&P 500® Low Volatility ETF (portfolio average weight of 7.47%) and the Invesco S&P International Developed Low Volatility ETF (portfolio average weight of 6.16%). Positions that detracted most significantly from the Fund’s absolute return included the Invesco RAFI Strategic Emerging Markets ETF (portfolio average weight of 1.07%) and the Invesco RAFI Strategic US Small Company ETF (portfolio average weight of 3.87%).
Market Segment Breakdown (% of the Fund’s Net Assets)* as of October 31, 2019 | ||||
U.S. Equities | 43.17 | |||
Fixed Income | 39.80 | |||
International and Developed Equities | 15.81 | |||
Emerging Markets Equities | 1.19 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.03 |
* | Reflects exposure achieved through investments in underlying funds. |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Security | ||||
Invesco RAFI™ Strategic US ETF | 14.04 | |||
Invesco Variable Rate Investment Grade ETF | 13.53 | |||
Invesco S&P 500 Pure Growth ETF | 11.92 | |||
Invesco RAFI™ Strategic Developed ex-US ETF | 7.96 | |||
Invesco RAFI™ Strategic US Small Company ETF | 7.53 | |||
Invesco S&P 500® Low Volatility ETF | 7.52 | |||
Invesco Taxable Municipal Bond ETF | 6.66 | |||
Invesco Investment Grade Defensive ETF | 6.06 | |||
Invesco S&P International Developed Low Volatility ETF | 5.74 | |||
Invesco Emerging Markets Sovereign Debt ETF | 3.77 | |||
Total | 84.74 |
* | Excluding money market fund holdings. |
| 7 |
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Invesco Balanced Multi-Asset Allocation ETF (PSMB)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
1 Year | Fund Inception | |||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||
Custom Invesco Balanced Allocation ETF Index | 12.52 | % | 7.36 | % | 20.97 | % | ||||||||||
S&P 500® Index | 14.33 | 11.99 | 35.47 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 11.57 | 7.46 | 21.27 | |||||||||||||
Market Price Return | 11.37 | 7.44 | 21.23 |
Fund Inception: February 23, 2017
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.40% includes the unitary management fee of 0.05% and acquired fund fees and expenses of 0.35%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Indexes and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
- | The Benchmark Index is a custom benchmark that consists of 60% MSCI ACWI Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. |
| 8 |
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PSMC | Manager’s Analysis | |
Invesco Conservative Multi-Asset Allocation ETF (PSMC) |
The Invesco Conservative Multi-Asset Allocation ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks total return consistent with a lower level of risk relative to the broad stock market. The Fund is a “fund of funds,” meaning that it invests its assets primarily in other ETFs (“Underlying ETFs”), rather than in securities of individual companies. Under normal circumstances, most of those Underlying ETFs will be ETFs that are advised by the Fund’s adviser or one of its affiliates (the “Invesco ETFs”). However, at times the Fund also may invest a portion of its assets in Underlying ETFs that are advised by unaffiliated advisers. The Fund and the Invesco ETFs are part of the same group of investment companies. The Fund seeks to achieve its investment objective by allocating its assets using a conservative investment style that seeks to maximize the benefits of diversification, which focuses on investing a greater portion of Fund assets in Underlying ETFs that invest primarily in fixed- income securities (“Fixed Income ETFs”), but also provides some exposure to Underlying ETFs that invest primarily in equity securities (“Equity ETFs”).
Invesco Advisers, Inc., the Fund’s sub-adviser, uses the following investment process to construct the Fund’s portfolio: (1) a strategic allocation across broad asset classes (i.e., equities and fixed-income securities) and particular investment factors within those classes (e.g., for fixed-income securities, exposure to domestic, international, corporate, government, high-yield and investment grade bonds; for equity securities, exposure to domestic and international stocks); (2) selection of Underlying ETFs that best represent those broad asset classes and factor exposures, based on a comprehensive quantitative and qualitative criteria (such as management experience and structure, investment process, performance and risk metrics); (3) determination by the Fund’s sub-adviser of target weightings in each Underlying ETF in a manner that seeks to manage the amount of active risk contributed by each Underlying ETF; and (4) ongoing monitoring of the Fund’s performance and risk. The Fund typically holds a limited number of securities (generally10-20).
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 9.96%. On a net asset value (“NAV”) basis, the Fund returned 9.80%. During the same time period, the Custom Invesco Conservative Allocation ETF Index (the “Benchmark Index”) returned 11.97%, while the S&P 500® Index returned 14.33%.
The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the period primarily because of the Fund’s higher relative exposures to variable rate fixed income securities and treasury inflation-protected securities (“TIPS”). Diversification within international equities also detracted from relative performance. During the same time period, the Benchmark Index posted a positive return driven by a larger allocation to longer duration fixed income securities.
For the fiscal year ended October 31, 2019, from an asset class perspective, exposure to preferred stocks through Underlying ETFs were the largest contributors to absolute returns, followed by emerging market sovereign debt. Exposure to U.S. investment grade fixed income through Underlying ETFs also contributed to the Fund’s return.
Positions that contributed most significantly to the Fund’s absolute return included the Invesco Preferred ETF (portfolio average weight of 7.80%), the Invesco Emerging Markets Sovereign Debt ETF (portfolio average weight of 5.85%) and the Invesco Fundamental Investment Grade Corporate Bond ETF (no longer held at fiscal year-end). There were no positions that posted a negative absolute return for the fiscal year.
Market Segment Breakdown (% of the Fund’s Net Assets)* as of October 31, 2019 | ||||
Fixed Income | 72.10 | |||
U.S. Equities | 23.87 | |||
International and Developed Equities | 4.02 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.01 |
* | Reflects exposure achieved through investments in underlying funds. |
Top Ten Fund Holdings* as of October 31, 2019 | ||||
Security | ||||
Invesco Variable Rate Investment Grade ETF | 20.09 | |||
Invesco Investment Grade Defensive ETF | 9.98 | |||
Invesco Senior Loan ETF | 7.76 | |||
Invesco Preferred ETF | 7.73 | |||
Invesco PureBetaSM 0-5 Yr US TIPS ETF | 7.24 | |||
Invesco Taxable Municipal Bond ETF | 7.04 | |||
Invesco RAFI™ Strategic US ETF | 6.88 | |||
Invesco S&P 500 Pure Growth ETF | 5.91 | |||
Invesco Emerging Markets Sovereign Debt ETF | 5.83 | |||
Invesco Investment Grade Value ETF | 5.61 | |||
Total | 84.07 |
* | Excluding money market fund holdings. |
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Invesco Conservative Multi-Asset Allocation ETF (PSMC)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
1 Year | Fund Inception | |||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||
Custom Invesco Conservative Allocation ETF Index | 11.97 | % | 5.38 | % | 15.08 | % | ||||||||||
S&P 500® Index | 14.33 | 11.99 | 35.47 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 9.80 | 5.32 | 14.92 | |||||||||||||
Market Price Return | 9.96 | 5.32 | 14.90 |
Fund Inception: February 23, 2017
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.39% includes the unitary management fee of 0.05% and acquired fund fees and expenses of 0.34%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Indexes and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
- | The Benchmark Index is a custom benchmark that consists of 20% MSCI ACWI Index and 80% Bloomberg Barclays U.S. Aggregate Bond Index. |
| 10 |
|
PSMG | Manager’s Analysis | |
Invesco Growth Multi-Asset Allocation ETF (PSMG) |
The Invesco Growth Multi-Asset Allocation ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks to provide long-term capital appreciation. The Fund is a “fund of funds,” meaning that it invests its assets primarily in other ETFs (“Underlying ETFs”), rather than in securities of individual companies. Under normal circumstances, most of those Underlying ETFs will be ETFs that are advised by the Fund’s adviser or one of its affiliates (the “Invesco ETFs”). However, at times the Fund also may invest a portion of its assets in Underlying ETFs that are advised by unaffiliated advisers. The Fund and the Invesco ETFs are part of the same group of investment companies. The Fund seeks to achieve its investment objective by allocating its assets using a growth investment style that seeks to maximize the benefits of diversification, which focuses on investing a greater portion of Fund assets in Underlying ETFs that invest primarily in equity securities (“Equity ETFs”), but also provides some exposure to Underlying ETFs that invest primarily in fixed-income securities (“Fixed Income ETFs”).
Invesco Advisers, Inc., the Fund’s sub-adviser, uses the following investment process to construct the Fund’s portfolio: (1) a strategic allocation across broad asset classes (i.e., equities and fixed-income securities) and particular investment factors within those classes (e.g., for fixed-income securities, exposure to domestic, international, corporate, government, high-yield and investment grade bonds; for equity securities, exposure to domestic and international stocks); (2) selection of Underlying ETFs that best represent those broad asset classes and factor exposures, based on a comprehensive quantitative and qualitative criteria (such as management experience and structure, investment process, performance and risk metrics); (3) determination by the Fund’s sub-adviser of target weightings in each Underlying ETF in a manner that seeks to manage the amount of active risk contributed by each Underlying ETF; and (4) ongoing monitoring of the Fund’s performance and risk. The Fund typically holds a limited number of securities (generally10-20)
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 11.97%. On a net asset value (“NAV”) basis, the Fund returned 12.24%. During the same time period, the Custom Invesco Growth Allocation ETF Index (the “Benchmark Index”) returned 12.62%, while the S&P 500® Index returned 14.33%.
The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the period primarily because of the Fund’s higher relative exposure to variable rate fixed income securities. Diversification within international equities also detracted from relative performance. During the same time period, the Benchmark Index posted a positive return driven by higher exposure to longer duration securities and exposure in international equities.
For the fiscal year ended October 31, 2019, from an asset class perspective, exposure to U.S. equities through Underlying ETFs were the largest contributors to absolute returns, led by the investment factors growth and low volatility. In contrast, diversification in emerging market equities and U.S. small cap equities detracted from performance.
Positions that contributed most significantly to the Fund’s absolute return included the Invesco S&P 500 GARP ETF (formerly, Invesco Russell Top 200 Pure Growth ETF) (no longer held at fiscalyear-end), the Invesco S&P 500® Low Volatility ETF (portfolio average weight of 9.52%) and the Invesco S&P International Developed Low Volatility ETF (portfolio average weight of 8.69%). The Invesco RAFITM Strategic Emerging Markets ETF (portfolio average weight of 1.79%) and the Invesco RAFITM Strategic US Small Company ETF (portfolio average weight of 4.26%) posted negative absolute returns for the period.
Market Segment Breakdown (% of the Fund’s Net Assets)* as of October 31, 2019 | ||||
U.S. Equities | 51.81 | |||
International and Developed Equities | 22.98 | |||
Fixed Income | 19.89 | |||
Equity Exchange-Traded Fund | 3.33 | |||
Emerging Markets Equities | 1.98 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.01 |
* | Reflects exposure achieved through investments in underlying funds. |
Top Ten Fund Holdings* as of October 31, 2019 | ||||
Security | ||||
Invesco RAFI™ Strategic US ETF | 16.59 | |||
Invesco S&P 500 Pure Growth ETF | 15.16 | |||
Invesco RAFI™ Strategic Developed ex-US ETF | 11.34 | |||
Invesco S&P 500® Low Volatility ETF | 9.59 | |||
Invesco RAFI™ Strategic US Small Company ETF | 8.26 | |||
Invesco S&P International Developed Low Volatility ETF | 8.13 | |||
Invesco Variable Rate Investment Grade ETF | 7.35 | |||
Invesco Taxable Municipal Bond ETF | 4.50 | |||
Invesco Investment Grade Defensive ETF | 4.02 | |||
Invesco RAFI™ Strategic Emerging Market ETF | 3.51 | |||
Total | 88.45 |
* | Excluding money market fund holdings. |
| 11 |
|
Invesco Growth Multi-Asset Allocation ETF (PSMG)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
1 Year | Fund Inception | |||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||
Custom Invesco Growth Allocation ETF Index | 12.62 | % | 8.26 | % | 23.72 | % | ||||||||||
S&P 500® Index | 14.33 | 11.99 | 35.47 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 12.24 | 8.58 | 24.71 | |||||||||||||
Market Price Return | 11.97 | 8.60 | 24.76 |
Fund Inception: February 23, 2017
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.39% includes the unitary management fee of 0.05% and acquired fund fees and expenses of 0.34%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Indexes and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
- | The Benchmark Index is a custom benchmark that consists of 80% MSCI ACWI Index and 20% Bloomberg Barclays U.S. Aggregate Bond Index. |
| 12 |
|
PSMM | Manager’s Analysis | |
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) |
The Invesco Moderately Conservative Multi-Asset Allocation ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) which seeks to provide current income and some capital appreciation. The Fund is a “fund of funds,” meaning that it invests its assets primarily in other ETFs (“Underlying ETFs”), rather than in securities of individual companies. Under normal circumstances, most of those Underlying ETFs will be ETFs that are advised by the Fund’s adviser or one of its affiliates (the “Invesco ETFs”). However, at times the Fund also may invest a portion of its assets in Underlying ETFs that are advised by unaffiliated advisers. The Fund and the Invesco ETFs are part of the same group of investment companies. The Fund seeks to achieve its investment objective by allocating its assets using a moderately conservative investment style that seeks to maximize the benefits of diversification, which focuses on investing portions of Fund assets in Underlying ETFs that invest primarily in equity securities (“Equity ETFs”), as well as in Underlying ETFs that invest primarily in fixed-income securities (“Fixed Income ETFs”).
Invesco Advisers, Inc., the Fund’s sub-adviser, uses the following investment process to construct the Fund’s portfolio: (1) a strategic allocation across broad asset classes (i.e., equities and fixed-income securities) and particular investment factors within those classes (e.g., for fixed-income securities, exposure to domestic, international, corporate, government, high-yield and investment grade bonds; for equity securities, exposure to domestic and international stocks); (2) selection of Underlying ETFs that best represent those broad asset classes and factor exposures, based on a comprehensive quantitative and qualitative criteria (such as management experience and structure, investment process, performance and risk metrics); (3) determination by the Fund’s sub-adviser of target weightings in each Underlying ETF in a manner that seeks to manage the amount of active risk contributed by each Underlying ETF; and (4) ongoing monitoring of the Fund’s performance and risk. The Fund typically holds a limited number of securities (generally10-20).
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 11.28%. On a net asset value (“NAV”) basis, the Fund returned 11.22%. During the same time period, the Custom Invesco Moderately Conservative Allocation ETF Index (the “Benchmark Index”) returned 12.30%, while the S&P 500® Index returned 14.33%.
The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the period primarily because of the Fund’s higher relative exposure to variable rate fixed income securities and treasury inflation-protected securities (“TIPS”). Diversification within international equities also detracted from relative performance. During the same time period, the Benchmark Index posted a positive return driven by a larger allocation to longer duration fixed income securities.
For the fiscal year ended October 31, 2019, from an asset class perspective, exposure to U.S. equities through Underlying ETFs were the largest contributors to absolute returns, led by the investment factors growth and low volatility. Diversification within fixed income also contributed to relative results, led by emerging markets sovereign debt and U.S. preferred securities. In contrast, diversification in U.S. small cap equities detracted from performance.
Positions that contributed most significantly to the Fund’s absolute return included the Invesco S&P 500 GARP ETF (formerly, Invesco Russell Top 200 Pure Growth ETF) (no longer held at fiscalyear-end), the Invesco S&P 500® Low Volatility ETF (portfolio average weight of 5.26%) and the Invesco Emerging Markets Sovereign Debt ETF (portfolio average weight of 5.80%). The Invesco RAFITM Strategic US Small Company ETF (portfolio average weight of 1.93%) was the only position that detracted from the Fund’s absolute return.
Market Segment Breakdown (% of the Fund’s Net Assets)* as of October 31, 2019 | ||||
Fixed Income | 54.03 | |||
U.S. Equities | 35.94 | |||
International and Developed Equities | 10.02 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.01 |
* | Reflects exposure achieved through investments in underlying funds. |
Top Ten Fund Holdings* as of October 31, 2019 | ||||
Security | ||||
Invesco Variable Rate Investment Grade ETF | 12.57 | |||
Invesco RAFI™ Strategic US ETF | 9.84 | |||
Invesco S&P 500 Pure Growth ETF | 9.08 | |||
Invesco Investment Grade Defensive ETF | 7.37 | |||
Invesco Taxable Municipal Bond ETF | 7.28 | |||
Invesco Emerging Markets Sovereign Debt ETF | 5.76 | |||
Invesco Preferred ETF | 5.74 | |||
Invesco PureBetaSM 0-5 Yr US TIPS ETF | 5.63 | |||
Invesco S&P 500® Low Volatility ETF | 5.24 | |||
Invesco RAFITM Strategic Developed ex-US ETF | 5.02 | |||
Total | 73.52 |
* | Excluding money market fund holdings. |
| 13 |
|
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
1 Year | Fund Inception | |||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||
Custom Invesco Moderately Conservative Allocation ETF Index | 12.30 | % | 6.40 | % | 18.09 | % | ||||||||||
S&P 500® Index | 14.33 | 11.99 | 35.47 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 11.22 | 6.50 | 18.40 | |||||||||||||
Market Price Return | 11.28 | 6.52 | 18.46 |
Fund Inception: February 23, 2017
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.39% includes the unitary management fee of 0.05% and acquired fund fees and expenses of 0.34%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Indexes and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
- | The Benchmark Index is a custom benchmark that consists of 40% MSCI ACWI Index and 60% Bloomberg Barclays U.S. Aggregate Bond Index. |
| 14 |
|
PHDG | Manager’s Analysis | |
Invesco S&P 500® Downside Hedged ETF (PHDG) |
The Invesco S&P 500® Downside Hedged ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. The Fund seeks to achieve its investment objective by using a quantitative, rules based strategy to allocate its assets among components of the S&P 500® Dynamic VEQTOR Index (the “Benchmark Index”) in a combination of (i) equity securities contained in the S&P 500® Index and that are listed on a U.S. securities exchange, (ii) Chicago Board Options Exchange Volatility Index (“VIX Index”) related instruments, such as listed VIX Index futures contracts that reflect exposure to the S&P 500® VIX Short Term Futures Index, and (iii) money market instruments, cash and cash equivalents. However, the Fund’s allocations among its investments may not correspond to those of the Benchmark Index.
Rather than adhering to the Benchmark Index’s strategy allocation rules, Invesco Capital Management LLC, the Fund’s investment adviser, uses active management techniques in seeking to obtain returns that exceed the Benchmark Index by providing the Fund with higher or lower exposure to any component within the Benchmark Index at any time. In addition to its investments in the components of the Benchmark Index, the Fund may invest in other VIX Index-related instruments, including ETFs and exchange-traded notes that are listed on a U.S. securities exchange and that provide exposure to the VIX Index and U.S. listed futures contracts that track the S&P 500® Index and are listed on the Chicago Mercantile Exchange.
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned (2.75)%. On a net asset value (“NAV”) basis, the Fund returned (2.71)%. During the same time period, the Benchmark Index returned (2.18)%. The Fund’s performance (NAV basis) differed from the return of the Benchmark Index primarily due to fees and transaction costs.
During this same time period, the S&P 500® Index returned 14.33% and the U.S. 3-Month Treasury Bill Index (the “T-Bill 3 Month Index”) returned 2.19% (these indexes, collectively with the Benchmark Index, are referred to as the “Indexes”). The Indexes were selected for their recognition in the marketplace. The S&P 500® Index was selected because its performance comparison is a useful measure for investors as a broad representation of the equity market. The T-Bill 3 Month Index was selected because its performance comparison is a useful measure for investors as a broad representation of the short-term U.S. fixed income market.
The Fund’s performance (NAV basis) differed from the return of the S&P 500® Index during the period primarily because of the Fund’s consistent allocation to VIX futures which have a negative correlation to the S&P 500® Index. The Fund’s performance (NAV basis) differed from the return of the U.S. 3-month Treasury Bill
Index during the period primarily because of the Fund’s consistent allocation to VIX Futures.
For the fiscal year ended October 31, 2019, the information technology sector contributed most significantly to the Fund’s return, followed by the communication services sector. VIX futures detracted most significantly from the Fund’s return.
Positions that contributed most significantly to the Fund’s return included Microsoft Corp., an information technology company (portfolio average weight of 2.39%), and Facebook, Inc. Class A, a communication services company (portfolio average weight of 1.05%). The position that detracted most significantly from the Fund’s return was CBOE VIX (CBF) February 2019 contract, a VIX futures contract (portfolio average weight of 0.74%).
Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Information Technology | 17.27 | |||
Health Care | 10.86 | |||
Financials | 10.07 | |||
Communication Services | 8.08 | |||
Consumer Discretionary | 7.75 | |||
Industrials | 7.16 | |||
Consumer Staples | 5.74 | |||
Energy | 3.35 | |||
Sector Types Each Less Than 3% | 7.21 | |||
Money Market Funds Plus Other Assets Less Liabilities | 22.51 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Security | ||||
Microsoft Corp. | 3.36 | |||
Apple, Inc. | 3.25 | |||
Amazon.com, Inc. | 2.27 | |||
Facebook, Inc., Class A | 1.42 | |||
Berkshire Hathaway, Inc., Class B | 1.28 | |||
JPMorgan Chase & Co. | 1.23 | |||
Alphabet, Inc., Class C | 1.17 | |||
Alphabet, Inc., Class A | 1.16 | |||
Johnson & Johnson | 1.07 | |||
Procter & Gamble Co. (The) | 0.96 | |||
Total | 17.17 |
* | Excluding money market fund holdings. |
| 15 |
|
Invesco S&P 500® Downside Hedged ETF (PHDG)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | Fund Inception | |||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||
S&P 500® Dynamic VEQTOR Index | (2.18 | )% | 7.21 | % | 23.21 | % | 1.29 | % | 6.63 | % | 3.99 | % | 30.98 | % | ||||||||||||||||||
S&P 500® Index | 14.33 | 14.91 | 51.73 | 10.78 | 66.81 | 14.04 | 147.59 | |||||||||||||||||||||||||
U.S. 3-Month Treasury Bill Index | 2.19 | 1.58 | 4.80 | 1.00 | 5.10 | 0.74 | 5.20 | |||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||
NAV Return | (2.71 | ) | 6.44 | 20.59 | 0.62 | 3.13 | 3.19 | 24.22 | ||||||||||||||||||||||||
Market Price Return | (2.75 | ) | 6.30 | 20.12 | 0.57 | 2.89 | 3.15 | 23.83 |
Fund Inception: December 6, 2012
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.40% (0.39% after fee waiver) includes the unitary management fee of 0.39% and acquired fund fees and expenses of 0.01%. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Indexes performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Indexes returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Indexes and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Indexes are based on the inception date of the Fund. |
| 16 |
|
GTO | Manager’s Analysis | |
Invesco Total Return Bond ETF (GTO) |
The Invesco Total Return Bond ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek maximum total return, comprised of income and capital appreciation. The Fund will normally invest in a portfolio of fixed income instruments of varying maturities and of any credit quality. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income instruments, which may be represented by certain derivative instruments as discussed below, and also include ETFs and closed-end funds (“CEFs”) that invest substantially all of their assets in fixed income instruments (which may include ETFs and CEFs affiliated with the Fund). The fixed income instruments in which the Fund will invest include corporate debt securities of U.S. and non-U.S. issuers, including corporate bonds, and other similar instruments, such as Treasury securities, collateralized loan obligations, mortgage-backed securities and asset-backed securities, issued by various U.S. and non-U.S. public- or private-sector entities, and municipal securities, which are debt securities issued by states or local governments and their agencies, authorities and other government sponsored enterprises.
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 12.20%. On a net asset value (“NAV”) basis, the Fund returned 12.22%.
During this same time period, the Bloomberg Barclays U.S. Aggregate Bond Index (the “Benchmark Index”) returned 11.51%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 10,200 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. bond market.
Relative to the Benchmark Index, the Fund was most overweight in the investment grade corporate debt sector and most underweight in the agency residential mortgage backed sector during the fiscal year ended October 31, 2019. The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the period primarily because of the Fund’s slightly longer duration posture relative to the Benchmark Index as interest rates fell. Over this time frame the yield on the 10-year U.S. Treasury bond fell approximately 145 basis points from 3.14% to 1.69%. Additionally, performance was positively impacted by security selection within the consumer non-cyclical, consumer cyclical, and technology media and telecommunication industries. Security selection within the financial institutions industry detracted from relative performance results for the period.
Individual positions that contributed most significantly to the Fund’s return included a 30 Year US Treasury Bond (portfolio average weight of 1.6%) and a Fannie Mae Commercial Mortgage Backed Security (portfolio average weight of 1.5%). Positions that
detracted most significantly from the Fund’s return included a 10 Year US Treasury Bond position (portfolio average weight of 1.2%) and a 10 Year US Treasury Future Contract utilized for interest rate management (portfolio average weight of 0.0%).
Asset Group (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
U.S. Treasury Securities | 35.06 | |||
U.S. Dollar Denominated Bonds & Notes | 34.55 | |||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 20.44 | |||
Asset-Backed Securities | 7.47 | |||
U.S. Government Sponsored Agency Securities | 1.69 | |||
Agency Credit Risk Transfer Notes | 0.40 | |||
Municipal Obligations | 0.37 | |||
Non-U.S. Dollar Denominated Bonds & Notes | 0.31 | |||
Preferred Stocks | 0.23 | |||
Open Exchanged-Traded Index Options Purchased | 0.03 | |||
Other Assets Less Liabilities | (0.55) | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of October 31, 2019 | ||||
Security | ||||
U.S. Treasury Notes, 1.38%, 10/15/2022 | 8.95 | |||
U.S. Treasury Notes, 1.63%, 08/15/2029 | 8.67 | |||
U.S. Treasury Notes, 1.50%, 09/30/2024 | 6.78 | |||
U.S. Treasury Bonds, 2.88%, 05/15/2049 | 5.31 | |||
U.S. Treasury Notes, 1.63%, 10/31/2026 | 2.86 | |||
Federal National Mortgage Association, 3.00%, 10/01/2049 | 2.72 | |||
U.S. Treasury Notes, 1.50%, 10/31/2024 | 2.30 | |||
Federal National Mortgage Association, 3.50%, 06/01/2047 | 1.70 | |||
Citigroup, Inc., 2.98%, 11/05/2030 | 1.30 | |||
Wendy’s Funding LLC, Series 2015-1A, Class A23, 4.50%, 06/15/2045 | 1.29 | |||
Total | 41.88 |
| 17 |
|
Invesco Total Return Bond ETF (GTO)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
3 Years Average | 3 Years Cumulative | Fund Inception | ||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 11.51 | % | 3.29 | % | 10.21 | % | 3.41 | % | 13.30 | % | ||||||||||||||
Fund | ||||||||||||||||||||||||
NAV Return | 12.22 | 5.40 | 17.10 | 5.94 | 23.96 | |||||||||||||||||||
Market Price Return | 12.20 | 5.45 | 17.26 | 5.95 | 24.01 |
Guggenheim Total Return Bond ETF (the “Predecessor Fund”) Inception: February 10, 2016
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.52% (0.51% after fee waiver) includes the unitary management fee of 0.50% and acquired fund fees and expenses of 0.02%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or
the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Index and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Predecessor Fund. |
- | Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund. |
| 18 |
|
GSY | Manager’s Analysis | |
Invesco Ultra Short Duration ETF (GSY) |
The Invesco Ultra Short Duration ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objective is to seek maximum current income, consistent with preservation of capital and daily liquidity. The Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities and in ETFs and closed-end funds that invest substantially all of their assets in fixed income securities. The Fund uses a low duration strategy to seek to outperform the ICE BofAML US Treasury Bill Index (the “Benchmark Index”) in addition to providing returns in excess of those available in U.S. Treasury bills, government repurchase agreements, and money market funds, while seeking to provide preservation of capital and daily liquidity. The Fund expects, under normal circumstances, to hold a diversified portfolio of fixed income instruments of varying maturities, but that have an average duration of less than one year.
The Fund is primarily invested in corporate bonds, commercial paper and asset-backed securities. The Fund’s high allocation to floating rate securities reduces interest rate risk while commercial paper helps the Fund manage its liquidity needs. The Fund’s focus on high-quality short maturity holdings helps the Fund manage credit risk. The Fund continues to maintain an average effective duration below one year. The portfolio management team believes the Fund is well positioned for interest rate volatility and broader financial market sell-offs overall and relative to other conservative ultra-short fixed income funds. Its significant holdings in high quality investment grade assets and money market securities continue to help reduce drawdown risks, while preserving capital and maintaining a competitive yield.
For the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 3.20%. On a net asset value (“NAV”) basis, the Fund returned 3.25%. During the same time period, the Benchmark Index returned 2.48%. The Fund’s performance (NAV basis) differed from the return of the Benchmark Index during the year primarily due to the Fund maintaining an overweight position in short maturity investment grade credit securities. Active positioning of U.S. corporate bonds of financial companies and cash equivalent commercial paper securities were positive contributors to the Fund’s performance and specifically contributed to the differentiation of performance from the Benchmark Index.
Positive returns were largely driven by the Fund’s holdings in investment grade corporate bonds and structured securities such as non-agency mortgage-backed securities. These sectors benefited from strong demand and positive macroeconomic conditions. The Fund’s holdings in floating rate securities benefited from tightening spreads due to strong demand for higher yielding credit-risk oriented assets.
The Fund’s holdings in investment grade corporate bonds and structured securities such as non-agency mortgage-backed securities contributed to performance. These sectors benefited from strong demand and positive macroeconomic conditions. The Fund’s holdings in floating rate securities also contributed to performance. Floating rate securities benefited from tightening spreads due to strong demand for higher yielding credit-risk oriented assets. The shorter duration of money market securities was a detractor from performance relative to the Fund’s benchmark.
Security Type Breakdown | ||||
U.S. Dollar Denominated Bonds & Notes | 53.65 | |||
Commercial Paper | 21.38 | |||
Asset-Backed Securities | 16.69 | |||
Repurchase Agreements | 4.65 | |||
Non-U.S. Dollar Denominated Bonds & Notes | 1.92 | |||
Certificate of Deposit | 0.76 | |||
U.S. Government Sponsored Agency Securities | 0.76 | |||
U.S. Treasury Securities | 0.76 | |||
Variable Rate Senior Loan Interests | 0.08 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.65 | ) |
| 19 |
|
Invesco Ultra Short Duration ETF (GSY)(continued)
Top Ten Fund Holdings* | ||||
Security | ||||
Japan Treasury Discount Bill, Series 860, 0.00%, 01/08/2020 | 1.92 | |||
Nomura Securities International, Inc., joint term agreement dated 10/01/2019, aggregate maturing value of $53,000,000 (collateralized by domestic non-agency mortgage-backed securities valued at $58,300,000; 6.44%; 03/25/2048), 2.70%, 04/28/2020 | 1.07 | |||
American Campus Communities Operating Partnership L.P., 3.35%, 10/01/2020 | 0.97 | |||
Royal Caribbean Cruises Ltd., 2.25%–2.26%, 11/08/2019 | 0.96 | |||
J.P. Morgan Securities LLC, open agreement dated 09/09/2019 (collateralized by domestic non-agency mortgage-backed securities and foreign non-agency asset-backed securities valued at $26,250,000; 1.09% - 6.62%; 12/15/2028 - 11/15/2050), 2.39% | 0.95 | |||
Citigroup Global Markets, Inc., joint open agreement dated 04/11/2019 (collateralized by domestic and foreign non-agency asset-backed securities, domestic and foreign corporate obligations and domestic mortgage-backed securities valued at $234,396,872; 0% - 7.53%; 12/01/2025 - 04/07/2052), 2.38% | 0.95 | |||
Motiva Enterprises LLC, 2.15%, 11/01/2019 | 0.95 | |||
Smithfield Foods, Inc., 2.31%, 11/05/2019 | 0.95 | |||
Healthpeak Properties, Inc., 2.05%, 11/21/2019 | 0.95 | |||
Glencore Funding LLC, 2.26%, 12/13/2019 | 0.95 | |||
Total | 10.62 |
* Excluding money market fund holdings.
Growth of a $10,000 Investment
Fund Performance History as of October 31, 2019
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception | |||||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||||
ICE BofAML US Treasury Bill Index | 2.48 | % | 1.60 | % | 4.89 | % | 1.04 | % | 5.32 | % | 0.58 | % | 5.99 | % | 0.69 | % | 8.35 | % | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 3.25 | 2.42 | 7.43 | 1.99 | 10.34 | 1.36 | 14.44 | 1.30 | 16.36 | |||||||||||||||||||||||||||||||
Market Price Return | 3.20 | 2.42 | 7.43 | 1.99 | 10.37 | 1.35 | 14.30 | 1.30 | 16.36 |
| 20 |
|
Invesco Ultra Short Duration ETF (GSY)(continued)
Guggenheim Ultra Short Duration ETF (the “Predecessor Fund”) Inception: February 12, 2008
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Index and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Predecessor Fund. |
- | Effective after the close of business on April 6, 2018, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund. |
| 21 |
|
VRIG | Manager’s Analysis | |
Invesco Variable Rate Investment Grade ETF (VRIG) |
The Invesco Variable Rate Investment Grade ETF (the “Fund”) is an actively managed exchange-traded fund (“ETF”) whose investment objectives are seeking to generate current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of investment grade, variable rate or floating rate debt securities that are denominated in U.S. dollars and are issued by U.S. private sector entities or U.S. government agencies and instrumentalities.
Invesco Advisers, Inc., the sub-adviser to the Fund, selects the following types of securities for the Fund: (i) floating rate non-agency commercial mortgage-backed securities (“MBS”); variable rate non-agency residential MBS; variable rate agency MBS and floating rate non-agency asset-backed securities (“ABS”) (including floating rate non-agency commercial real estate collateralized loan obligations); (ii) floating rate corporate debt securities (comprised of corporate notes, bonds, debentures or privately issued securities offered pursuant to Rule 144A of the Securities Act of 1933, as amended); (iii) floating rate government sponsored enterprise credit risk transfers; (iv) floating rate U.S. Government securities (including floating rate agency debt securities); (v) variable rate preferred stock; and (vi) affiliated ETFs that invest primarily in any or all of the foregoing securities (collectively, “Variable Rate Instruments”), to the extent permitted by the Investment Company Act of 1940, as amended.
During the fiscal year ended October 31, 2019, on a market price basis, the Fund returned 2.96%. On a net asset value (“NAV”) basis, the Fund returned 2.92%. During the same time period, the Bloomberg Barclays US Floating Rate Note Index (the “Benchmark Index”) returned 3.31%.
Relative to the Benchmark Index, active positioning in variable rate preferred securities and non-agency MBS were both positive contributors to the Fund’s performance. Security selection within investment grade corporates also contributed to relative return. The Fund’s duration, which was shorter than the Benchmark Index on average over the period, detracted from relative performance. The Fund’s overweight allocation to agency credit risk transfer positions (“CRT”) and allocation to floating rate U.S. Treasury securities detracted from the Fund’s performance relative to the Benchmark Index over the period.
Individual positions that contributed most significantly to the Fund’s return included the Fund’s allocation to Invesco Variable Rate Preferred ETF (portfolio average weight of 0.8%) as well as its allocation to Prudential Financial, Inc. (no longer held at fiscal year-end) which is an investment grade variable rate preferred position. Positions that detracted most significantly from the Fund’s return included two agency CRT positions, Fannie Mae Connecticut Avenue Securities, Series 2014-C03, Class 2M2,
4.72% (1 mo. USD LIBOR + 2.90%), 07/25/2024 (portfolio average weight of 1.0%) and Freddie Mac, Series 2018-HQA1, Class M2, STACR®, 4.12% (1 mo. USD LIBOR + 2.30%), 09/25/2030 (portfolio average weight of 2.2%).
Security Type Breakdown | ||||
U.S. Dollar Denominated Bonds & Notes | 45.03 | |||
Asset-Backed Securities | 19.12 | |||
Agency Credit Risk Transfer Notes | 14.73 | |||
U.S. Treasury Securities | 8.20 | |||
U.S. Government Sponsored Agency Mortgage-Backed Securities | 7.76 | |||
Commercial Paper | 2.55 | |||
Exchange-Traded Funds | 1.97 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.64 | |||
Top Ten Fund Holdings* | ||||
Security | ||||
U.S. Treasury Floating Rate Notes, 1.67%, 04/30/2021 | 4.36 | |||
U.S. Treasury Floating Rate Notes, 1.75%, 07/31/2021 | 3.83 | |||
Glencore Funding LLC, 2.28%, 11/04/2019 | 2.55 | |||
Invesco Variable Rate Preferred ETF | 1.97 | |||
Freddie Mac, Series 2016-HQA3, Class M2, STACR®, 3.17%, 03/25/2029 | 1.73 | |||
Fannie Mae Connecticut Avenue Securities, Series 2014-C03, Class 1M2, 4.82%, 07/25/2024 | 1.67 | |||
Freddie Mac, Series 2015-DNA3, Class M2, STACR®, 4.67%, 04/25/2028 | 1.45 | |||
Invitation Homes Trust, Series 2017-SFR2, Class C, 3.34%, 12/17/2036 | 1.44 | |||
Freddie Mac, Series 2015-HQ2, Class M2, STACR®, 3.77%, 05/25/2025 | 1.4 | |||
Athene Global Funding, 3.32%, 07/01/2022 | 1.37 | |||
Total | 21.77 |
* | Excluding money market fund holdings. |
| 22 |
|
Invesco Variable Rate Investment Grade ETF (VRIG)(continued)
Growth of a $10,000 Investment Since Inception
Fund Performance History as of October 31, 2019
Index | 1 Year | 3 Years Average Annualized | 3 Years Cumulative | Fund Inception | ||||||||||||||||||||
Average Annualized | Cumulative | |||||||||||||||||||||||
Bloomberg Barclays US Floating Rate Note Index | 3.31 | % | 2.69 | % | 8.29 | % | 2.65 | % | 8.46 | % | ||||||||||||||
Fund | ||||||||||||||||||||||||
NAV Return | 2.92 | 2.71 | 8.36 | 2.68 | 8.55 | |||||||||||||||||||
Market Price Return | 2.96 | 2.64 | 8.14 | 2.62 | 8.38 |
Fund Inception: September 22, 2016
Performance quoted above represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate, and shares of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.30% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ETFs to find the most recent month-end performance numbers.
Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Benchmark Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
Notes Regarding Index and Fund Performance History:
- | Average Annualized and Cumulative Inception returns for the Fund and Benchmark Index are based on the inception date of the Fund. |
| 23 |
|
Invesco Active U.S. Real Estate ETF (PSR)
October 31, 2019
Schedule of Investments(a)
Shares | Value | |||||||||
Common Stocks & Other Equity Interests-99.97% |
| |||||||||
Apartments-10.05% | ||||||||||
American Campus Communities, Inc. | 9,086 | $ | 454,118 | |||||||
Apartment Investment & Management Co., Class A | 20,293 | 1,113,680 | ||||||||
AvalonBay Communities, Inc. | 12,265 | 2,669,600 | ||||||||
Equity Residential | 35,299 | 3,129,609 | ||||||||
Essex Property Trust, Inc. | 8,630 | 2,823,132 | ||||||||
Mid-America Apartment Communities, Inc. | 14,610 | 2,030,644 | ||||||||
|
| |||||||||
12,220,783 | ||||||||||
|
| |||||||||
Data Centers-6.65% | ||||||||||
Digital Realty Trust, Inc. | 19,841 | 2,520,601 | ||||||||
Equinix, Inc. | 8,399 | 4,760,385 | ||||||||
QTS Realty Trust, Inc., Class A | 15,051 | 806,583 | ||||||||
|
| |||||||||
8,087,569 | ||||||||||
|
| |||||||||
Diversified-3.28% | ||||||||||
STORE Capital Corp. | 19,618 | 794,529 | ||||||||
VEREIT, Inc. | 118,467 | 1,165,716 | ||||||||
Vornado Realty Trust | 19,848 | 1,302,624 | ||||||||
Washington REIT | 23,359 | 724,596 | ||||||||
|
| |||||||||
3,987,465 | ||||||||||
|
| |||||||||
Free Standing-5.90% | ||||||||||
Agree Realty Corp. | 7,575 | 596,683 | ||||||||
Four Corners Property Trust, Inc. | 13,956 | 399,839 | ||||||||
Kimco Realty Corp. | 82,330 | 1,775,035 | ||||||||
National Retail Properties, Inc. | 25,339 | 1,492,720 | ||||||||
Realty Income Corp. | 35,573 | 2,909,516 | ||||||||
|
| |||||||||
7,173,793 | ||||||||||
|
| |||||||||
Health Care-10.85% | ||||||||||
CareTrust REIT, Inc. | 32,421 | 785,885 | ||||||||
HCP, Inc. | 65,993 | 2,482,657 | ||||||||
Healthcare Realty Trust, Inc. | 15,918 | 553,469 | ||||||||
LTC Properties, Inc. | 6,974 | 361,602 | ||||||||
Medical Properties Trust, Inc. | 39,878 | 826,671 | ||||||||
National Health Investors, Inc. | 8,713 | 747,488 | ||||||||
Omega Healthcare Investors, Inc.(b) | 30,978 | 1,364,271 | ||||||||
Ventas, Inc. | 40,486 | 2,635,639 | ||||||||
Welltower, Inc. | 37,857 | 3,433,251 | ||||||||
|
| |||||||||
13,190,933 | ||||||||||
|
| |||||||||
Industrial-10.18% | ||||||||||
Americold Realty Trust | 23,008 | 922,391 | ||||||||
Duke Realty Corp. | 43,715 | 1,536,145 | ||||||||
EastGroup Properties, Inc. | 8,009 | 1,072,806 | ||||||||
First Industrial Realty Trust, Inc. | 7,985 | 336,248 | ||||||||
Liberty Property Trust | 19,692 | 1,163,206 | ||||||||
Prologis, Inc. | 60,982 | 5,351,780 | ||||||||
Rexford Industrial Realty, Inc. | 14,766 | 710,097 | ||||||||
STAG Industrial, Inc. | 11,379 | 353,204 | ||||||||
Terreno Realty Corp. | 16,458 | 928,396 | ||||||||
|
| |||||||||
12,374,273 | ||||||||||
|
| |||||||||
Infrastructure REITs-15.13% | ||||||||||
American Tower Corp. | 43,066 | 9,391,833 | ||||||||
Crown Castle International Corp. | 38,667 | 5,366,593 | ||||||||
SBA Communications Corp., Class A | 15,096 | 3,632,853 | ||||||||
|
| |||||||||
18,391,279 | ||||||||||
|
|
Shares | Value | |||||||||
Lodging Resorts-4.25% | ||||||||||
DiamondRock Hospitality Co. | 62,951 | $ | 628,251 | |||||||
Host Hotels & Resorts, Inc. | 105,943 | 1,736,406 | ||||||||
Park Hotels & Resorts, Inc. | 13,403 | 311,620 | ||||||||
RLJ Lodging Trust | 22,580 | 370,538 | ||||||||
Ryman Hospitality Properties, Inc. | 14,535 | 1,223,411 | ||||||||
Sunstone Hotel Investors, Inc. | 66,177 | 894,051 | ||||||||
|
| |||||||||
5,164,277 | ||||||||||
|
| |||||||||
Manufactured Homes-4.31% | ||||||||||
Camden Property Trust | 11,758 | 1,344,762 | ||||||||
Equity LifeStyle Properties, Inc. | 34,317 | 2,400,131 | ||||||||
Sun Communities, Inc. | 9,147 | 1,487,760 | ||||||||
|
| |||||||||
5,232,653 | ||||||||||
|
| |||||||||
Office-8.75% | ||||||||||
Alexandria Real Estate Equities, Inc. | 13,296 | 2,110,740 | ||||||||
Boston Properties, Inc. | 20,136 | 2,762,659 | ||||||||
Columbia Property Trust, Inc. | 38,675 | 793,611 | ||||||||
Corporate Office Properties Trust | 12,467 | 369,522 | ||||||||
Douglas Emmett, Inc. | 23,323 | 1,010,352 | ||||||||
Empire State Realty Trust, Inc., Class A | 35,831 | 518,474 | ||||||||
Hudson Pacific Properties, Inc. | 12,976 | 466,098 | ||||||||
Kilroy Realty Corp. | 5,177 | 434,506 | ||||||||
Paramount Group, Inc. | 22,400 | 301,728 | ||||||||
Piedmont Office Realty Trust, Inc., Class A | 36,515 | 819,397 | ||||||||
SL Green Realty Corp. | 12,488 | 1,043,997 | ||||||||
|
| |||||||||
10,631,084 | ||||||||||
|
| |||||||||
Regional Malls-4.23% | ||||||||||
Simon Property Group, Inc. | 34,103 | 5,138,640 | ||||||||
|
| |||||||||
Self Storage-2.30% | ||||||||||
Extra Space Storage, Inc. | 1,816 | 203,882 | ||||||||
Public Storage | 11,601 | 2,585,399 | ||||||||
|
| |||||||||
2,789,281 | ||||||||||
|
| |||||||||
Shopping Centers-3.79% | ||||||||||
Brixmor Property Group, Inc. | 15,263 | 336,091 | ||||||||
Federal Realty Investment Trust | 7,705 | 1,047,957 | ||||||||
Regency Centers Corp. | 12,983 | 872,977 | ||||||||
Retail Properties of America, Inc., Class A | 75,364 | 1,037,009 | ||||||||
SITE Centers Corp. | 51,509 | 799,935 | ||||||||
Weingarten Realty Investors | 16,247 | 515,517 | ||||||||
|
| |||||||||
4,609,486 | ||||||||||
|
| |||||||||
Single Family Homes-3.50% | ||||||||||
American Homes 4 Rent, Class A | 38,407 | 1,016,633 | ||||||||
Invitation Homes, Inc. | 72,222 | 2,223,716 | ||||||||
UDR, Inc. | 20,209 | 1,015,502 | ||||||||
|
| |||||||||
4,255,851 | ||||||||||
|
| |||||||||
Specialty-5.38% | ||||||||||
CatchMark Timber Trust, Inc., Class A | 22,386 | 256,767 | ||||||||
CoreSite Realty Corp. | 2,238 | 262,965 | ||||||||
EPR Properties | 18,245 | 1,419,279 | ||||||||
Gaming and Leisure Properties, Inc. | 24,629 | 994,026 | ||||||||
Lamar Advertising Co., Class A | 20,257 | 1,620,763 | ||||||||
National Storage Affiliates Trust | 29,042 | 992,365 | ||||||||
Outfront Media, Inc. | 37,930 | 997,938 | ||||||||
|
| |||||||||
6,544,103 | ||||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 | ||||
|
| |||
Invesco Active U.S. Real Estate ETF (PSR)–(continued)
October 31, 2019
Shares | Value | |||||||||
Timber REITs-1.42% | ||||||||||
Rayonier, Inc. | 16,736 | $ | 451,537 | |||||||
Weyerhaeuser Co. | 43,719 | 1,277,032 | ||||||||
|
| |||||||||
1,728,569 | ||||||||||
|
| |||||||||
Total Common Stocks & Other Equity Interests |
| 121,520,039 | ||||||||
|
| |||||||||
Money Market Funds-0.01% | ||||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(c) | 11,713 | 11,713 | ||||||||
|
| |||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 121,531,752 | ||||||||
|
|
Shares | Value | |||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||||
Money Market Funds-1.03% |
| |||||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.71%(c)(d) | 935,723 | $ | 935,723 | |||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(c)(d) | 311,783 | 311,908 | ||||||||
|
| |||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 1,247,631 | ||||||||
|
| |||||||||
TOTAL INVESTMENTS IN SECURITIES-101.01% |
| 122,779,383 | ||||||||
OTHER ASSETS LESS LIABILITIES-(1.01)% |
| (1,227,837 | ) | |||||||
|
| |||||||||
NET ASSETS-100.00% | $ | 121,551,546 | ||||||||
|
|
Investment Abbreviations:
REIT-Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at October 31, 2019. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(d) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 | ||||
|
| |||
Invesco Balanced Multi-Asset Allocation ETF (PSMB)
October 31, 2019
Schedule of Investments
Schedule of Investments in Affiliated Issuers- 128.80%(a)
% of Net Assets 10/31/19 | Value 10/31/18 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Dividend Income | Shares 10/31/19 | Value 10/31/19 | |||||||||||||||||||||||||||||||||||||
Domestic Equity Funds-43.17% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI US 1000 ETF | - | $ | 344,417 | $ | 26,244 | $ | (393,330 | ) | $ | (6,747 | ) | $ | 29,416 | $ | 3,413 | - | $ | - | |||||||||||||||||||||||||||
Invesco FTSE RAFI US 1500 Small-Mid ETF | - | 181,245 | 22,631 | (213,959 | ) | 6,482 | 3,601 | 994 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US ETF(b) | 14.04% | - | 2,308,366 | (1,852,241 | ) | 18,998 | 121,312 | 4,836 | 22,931 | 596,435 | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US Small Company ETF(b) | 7.53% | - | 1,249,043 | (1,010,990 | ) | (530 | ) | 82,058 | 1,519 | 13,634 | 319,581 | ||||||||||||||||||||||||||||||||||
Invesco S&P 500 GARP ETF | - | 294,065 | 20,110 | (354,161 | ) | (23,219 | ) | 63,205 | 1,477 | - | - | ||||||||||||||||||||||||||||||||||
Invesco S&P 500® Low Volatility ETF(b) | 7.52% | 191,720 | 1,070,991 | (1,015,386 | ) | 1,446 | 70,397 | 6,854 | 5,544 | 319,168 | |||||||||||||||||||||||||||||||||||
Invesco S&P 500® Pure Growth ETF | 11.92% | - | 1,951,491 | (1,501,895 | ) | 996 | 55,600 | 2,082 | 4,248 | 506,192 | |||||||||||||||||||||||||||||||||||
Invesco S&P MidCap Low Volatility ETF(b) | 2.16% | 54,713 | 302,509 | (284,215 | ) | 2,878 | 15,931 | 1,333 | 1,721 | 91,816 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Domestic Equity Funds | 1,066,160 | 6,951,385 | (6,626,177 | ) | 304 | 441,520 | 22,508 | 1,833,192 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Fixed Income Funds-39.80% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco 1-30 Laddered Treasury ETF | - | 201,793 | 20,170 | (233,374 | ) | 8,447 | 2,964 | 2,158 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Corporate Income Defensive | 2.88% | - | 490,691 | (371,630 | ) | 212 | 2,757 | 3,368 | 4,726 | 122,030 | |||||||||||||||||||||||||||||||||||
Invesco Corporate Income Value ETF(b) | 1.63% | - | 275,967 | (211,115 | ) | (802 | ) | 5,175 | 2,828 | 2,826 | 69,225 | ||||||||||||||||||||||||||||||||||
Invesco Emerging Markets Sovereign Debt ETF | 3.77% | 99,961 | 542,761 | (493,641 | ) | 6,173 | 4,725 | 7,817 | 5,490 | 159,979 | |||||||||||||||||||||||||||||||||||
Invesco Fundamental High Yield® Corporate Bond ETF | - | 99,026 | 5,922 | (107,766 | ) | 2,524 | 294 | 2,129 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Fundamental Investment Grade Corporate Bond ETF | - | 251,708 | 20,384 | (279,850 | ) | 4,776 | 2,982 | 3,802 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Defensive ETF | 6.06% | - | 1,039,477 | (785,042 | ) | 413 | 2,441 | 3,959 | 9,768 | 257,289 | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Value ETF | 3.39% | - | 581,775 | (437,528 | ) | (279 | ) | 112 | 2,808 | 5,300 | 144,080 | ||||||||||||||||||||||||||||||||||
Invesco Senior Loan ETF(b) | 1.88% | 50,208 | 270,458 | (241,798 | ) | (1,669 | ) | 2,715 | 3,974 | 3,566 | 79,914 | ||||||||||||||||||||||||||||||||||
Invesco Taxable Municipal Bond ETF | 6.66% | - | 1,171,342 | (876,530 | ) | (7,065 | ) | (5,087 | ) | 6,704 | 8,781 | 282,660 | |||||||||||||||||||||||||||||||||
Invesco Variable Rate Investment Grade ETF | 13.53% | 355,959 | 1,971,369 | (1,753,097 | ) | (259 | ) | 671 | 17,428 | 23,041 | 574,643 | ||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Fixed Income Funds | 1,058,655 | 6,390,316 | (5,791,371 | ) | 12,471 | 19,749 | 56,975 | 1,689,820 | |||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Foreign Equity Funds-17.00% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | - | 225,847 | 6,054 | (241,608 | ) | 9,524 | 183 | 2,736 | - | - | |||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Emerging Markets ETF | - | 48,172 | 193 | (52,400 | ) | 1,728 | 2,307 | 324 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Developed ex-US ETF | 7.96% | - | 1,332,309 | (1,076,493 | ) | 5,643 | 76,566 | 3,904 | 13,521 | 338,025 | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Emerging Market ETF | 2.11% | - | 350,096 | (278,381 | ) | (2,644 | ) | 20,389 | 1,472 | 3,587 | 89,460 | ||||||||||||||||||||||||||||||||||
Invesco S&P Emerging Markets Low Volatility ETF | 1.19% | 48,162 | 169,565 | (177,613 | ) | 1,859 | 8,635 | 2,206 | 2,188 | 50,608 | |||||||||||||||||||||||||||||||||||
Invesco S&P International Developed Low Volatility ETF | 5.74% | 173,409 | 787,241 | (765,251 | ) | 15,758 | 32,700 | 6,763 | 7,054 | 243,857 | |||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Foreign Equity Funds | 495,590 | 2,645,458 | (2,591,746 | ) | 31,868 | 140,780 | 17,405 | 721,950 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
26 | ||||
|
| |||
Invesco Balanced Multi-Asset Allocation ETF (PSMB)–(continued)
October 31, 2019
Schedule of Investments in Affiliated Issuers- 128.80%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Money Market Funds-0.03% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(c) | 0.03% | $ | 26 | $ | 96,976 | $ | (95,538 | ) | $ | - | $ | - | $ | 37 | 1,464 | $ | 1,464 | ||||||||||||||||||||||||||||
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|
| ||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS (excluding investments purchased with cash collateral from securities on | 100.00% | 2,620,431 | 16,084,135 | (15,104,832 | ) | 44,643 | 602,049 | 96,925 | 4,246,426 | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds-28.80% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, | 21.60% | 917,158 | 917,158 | ||||||||||||||||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(c)(d) | 7.20% | 305,597 | 305,719 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $1,222,868) | 1,222,877 | ||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS | 128.80% | 5,469,303 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS LESS LIABILITIES | (28.80)% | (1,222,926 | ) | ||||||||||||||||||||||||||||||||||||||||||
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|
|
| ||||||||||||||||||||||||||||||||||||||||||
NET ASSETS | 100.00% | $ | 4,246,377 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Investment Abbreviations:
ETF-Exchange-Traded Fund
Notes to Schedule of Investments:
(a) | Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. |
(b) | All or a portion of this security was out on loan at October 31, 2019. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(d) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
27 | ||||
|
| |||
Invesco Conservative Multi-Asset Allocation ETF (PSMC)
October 31, 2019
Schedule of Investments
Schedule of Investments in Affiliated Issuers- 127.94%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Domestic Equity Funds-23.87% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI US 1000 ETF | - | $ | 73,525 | $ | 751,997 | $ | (926,841 | ) | $ | (4,885 | ) | $ | 106,204 | $ | 3,658 | - | $ | - | |||||||||||||||||||||||||||
Invesco Preferred ETF(b) | 7.73% | 98,266 | 1,066,492 | (940,188 | ) | 18,345 | 59,142 | 23,489 | 20,164 | 302,057 | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US ETF(b) | 6.88% | - | 277,715 | (16,462 | ) | 7,171 | 155 | 1,781 | 10,326 | 268,579 | |||||||||||||||||||||||||||||||||||
Invesco S&P 500 GARP ETF | - | 64,494 | 670,793 | (867,594 | ) | (14,959 | ) | 147,266 | 1,175 | - | - | ||||||||||||||||||||||||||||||||||
Invesco S&P 500® Low Volatility ETF(b) | 3.35% | 46,694 | 495,791 | (489,484 | ) | 12,920 | 64,878 | 4,425 | 2,272 | 130,799 | |||||||||||||||||||||||||||||||||||
Invesco S&P 500® Pure Growth ETF | 5.91% | - | 238,435 | (8,129 | ) | 477 | 30 | 750 | 1,937 | 230,813 | |||||||||||||||||||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Domestic Equity Funds | 282,979 | 3,501,223 | (3,248,698 | ) | 19,069 | 377,675 | 35,278 | 932,248 | |||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Fixed Income Funds-72.10% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco 1-30 Laddered Treasury ETF | - | 80,460 | 832,773 | (928,294 | ) | 3,322 | 11,739 | 5,396 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Corporate Income Defensive ETF(b) | 5.47% | - | 214,944 | (3,446 | ) | 2,249 | 25 | 3,310 | 8,279 | 213,772 | |||||||||||||||||||||||||||||||||||
Invesco Corporate Income Value ETF(b) | 3.08% | - | 124,477 | (2,706 | ) | (1,638 | ) | (6 | ) | 2,730 | 4,904 | 120,127 | |||||||||||||||||||||||||||||||||
Invesco Emerging Markets Sovereign Debt ETF | 5.83% | 72,718 | 794,983 | (696,236 | ) | 15,967 | 40,064 | 15,549 | 7,807 | 227,496 | |||||||||||||||||||||||||||||||||||
Invesco Fundamental High Yield® Corporate Bond ETF | - | 106,947 | 1,041,710 | (1,213,270 | ) | 3,932 | 60,681 | 14,060 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Fundamental Investment Grade Corporate Bond ETF | - | 195,700 | 1,970,184 | (2,222,925 | ) | 6,686 | 50,355 | 18,541 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Defensive ETF | 9.98% | - | 390,427 | (9,665 | ) | 8,769 | 117 | 3,341 | 14,793 | 389,648 | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Value ETF | 5.61% | - | 218,263 | (7,017 | ) | 7,764 | 210 | 2,358 | 8,064 | 219,220 | |||||||||||||||||||||||||||||||||||
Invesco PureBetaSM0-5 Yr US TIPS ETF | 7.24% | 90,992 | 1,014,872 | (840,071 | ) | 3,394 | 13,702 | 3,395 | 11,361 | 282,889 | |||||||||||||||||||||||||||||||||||
Invesco Senior Loan ETF(b) | 7.76% | 107,549 | 1,171,666 | (1,011,570 | ) | (1,127 | ) | 36,555 | 21,749 | 13,524 | 303,073 | ||||||||||||||||||||||||||||||||||
Invesco Taxable Municipal Bond ETF | 7.04% | - | 278,893 | (15,219 | ) | 10,405 | 791 | 3,669 | 8,539 | 274,870 | |||||||||||||||||||||||||||||||||||
Invesco Variable Rate Investment Grade ETF | 20.09% | 250,050 | 2,816,267 | (2,305,071 | ) | 1,874 | 21,467 | 33,981 | 31,459 | 784,587 | |||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Fixed Income Funds | 904,416 | 10,869,459 | (9,255,490 | ) | 61,597 | 235,700 | 128,079 | 2,815,682 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Foreign Equity Funds-4.02% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | - | 33,823 | 337,609 | (406,780 | ) | 303 | 35,045 | 1,884 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Developed ex-US ETF | 2.01% | - | 83,376 | (5,506 | ) | 717 | (37 | ) | 725 | 3,142 | 78,550 | ||||||||||||||||||||||||||||||||||
Invesco S&P International Developed Low Volatility ETF | 2.01% | 27,718 | 300,953 | (283,427 | ) | 7,930 | 25,196 | 2,807 | 2,267 | 78,370 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Foreign Equity Funds | 61,541 | 721,938 | (695,713 | ) | 8,950 | 60,204 | 5,416 | 156,920 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
28 | ||||
|
| |||
Invesco Conservative Multi-Asset Allocation ETF (PSMC)–(continued)
October 31, 2019
Schedule of Investments in Affiliated Issuers- 127.94%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Money Market Funds-0.05% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(c) | 0.05% | $ | - | $ | 255,676 | $ | (253,891 | ) | $ | - | $ | - | $ | 110 | 1,785 | $ | 1,785 | ||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS (excluding investments purchased with cash collateral from securities on | 100.04% | 1,248,936 | 15,348,296 | (13,453,792 | ) | 89,616 | 673,579 | 168,883 | 3,906,635 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds-27.90% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.71%(c)(d) | 20.93% | 817,399 | 817,399 | ||||||||||||||||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(c)(d) | 6.97% | 272,017 | 272,126 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $1,089,525) | 1,089,525 | ||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS (Cost $4,912,299) | 127.94% | 4,996,160 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS LESS LIABILITIES | (27.94)% | (1,090,991 | ) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
NET ASSETS | 100.00% | $ | 3,905,169 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Investment Abbreviations:
ETF-Exchange-Traded Fund
Notes to Schedule of Investments:
(a) | Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. |
(b) | All or a portion of this security was out on loan at October 31, 2019. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(d) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
29 | ||||
|
| |||
Invesco Growth Multi-Asset Allocation ETF (PSMG)
October 31, 2019
Schedule of Investments
Schedule of Investments in Affiliated Issuers- 122.01%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Domestic Equity Funds-55.14% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI US 1000 ETF | - | $ | 428,875 | $ | 472,495 | $ | (953,894 | ) | $ | (7,441 | ) | $ | 59,965 | $ | 7,233 | - | $ | - | |||||||||||||||||||||||||||
Invesco FTSE RAFI US 1500 Small-Mid ETF | - | 210,106 | 250,119 | (482,106 | ) | 4,867 | 17,014 | 1,867 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US ETF(b) | 16.59% | - | 733,861 | (27,354 | ) | 22,895 | 309 | 7,068 | 28,055 | 729,711 | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US Small Company ETF(b) | 8.26% | - | 380,341 | (11,707 | ) | (4,788 | ) | (221 | ) | 2,070 | 15,513 | 363,625 | |||||||||||||||||||||||||||||||||
Invesco S&P 500 GARP ETF | - | 393,915 | 436,054 | (926,515 | ) | (30,001 | ) | 126,547 | 3,234 | - | - | ||||||||||||||||||||||||||||||||||
Invesco S&P 500® Low Volatility ETF(b) | 9.59% | 251,036 | 274,922 | (181,467 | ) | 51,576 | 25,863 | 9,178 | 7,329 | 421,930 | |||||||||||||||||||||||||||||||||||
Invesco S&P 500® Pure Growth ETF | 15.16% | - | 678,927 | (12,446 | ) | 637 | 59 | 3,154 | 5,599 | 667,177 | |||||||||||||||||||||||||||||||||||
Invesco S&P MidCap Low Volatility ETF(b) | 2.21% | 69,916 | 76,190 | (64,632 | ) | 9,205 | 6,471 | 2,128 | 1,821 | 97,150 | |||||||||||||||||||||||||||||||||||
Invesco S&P SmallCap Low Volatility ETF | 3.33% | 80,833 | 107,144 | (54,163 | ) | 10,189 | 2,681 | 3,597 | 2,922 | 146,684 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Domestic Equity Funds | 1,434,681 | 3,410,053 | (2,714,284 | ) | 57,139 | 238,688 | 39,529 | 2,426,277 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Fixed Income Funds-19.89% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco 1-30 Laddered Treasury ETF | - | 147,256 | 177,036 | (336,231 | ) | 4,826 | 7,113 | 2,479 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Emerging Markets Sovereign Debt ETF | 1.78% | 31,030 | 66,046 | (25,267 | ) | 6,033 | 545 | 3,205 | 2,690 | 78,387 | |||||||||||||||||||||||||||||||||||
Invesco Fundamental Investment Grade Corporate Bond ETF | - | 161,977 | 188,879 | (359,530 | ) | 2,954 | 5,720 | 3,866 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Defensive ETF(b) | 4.02% | - | 180,914 | (9,821 | ) | 5,544 | 78 | 2,081 | 6,709 | 176,715 | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Value ETF(b) | 2.24% | - | 99,325 | (5,807 | ) | 4,963 | 146 | 1,458 | 3,628 | 98,627 | |||||||||||||||||||||||||||||||||||
Invesco Taxable Municipal Bond ETF(b) | 4.50% | - | 202,286 | (16,578 | ) | 11,247 | 885 | 3,636 | 6,146 | 197,840 | |||||||||||||||||||||||||||||||||||
Invesco Variable Rate Investment Grade ETF(b) | 7.35% | 203,913 | 260,896 | (141,500 | ) | 377 | (264 | ) | 10,184 | 12,968 | 323,422 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Fixed Income Funds | 544,176 | 1,175,382 | (894,734 | ) | 35,944 | 14,223 | 26,909 | 874,991 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Foreign Equity Funds-24.96% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | - | 301,609 | 317,970 | (644,889 | ) | 13,265 | 12,045 | 6,163 | - | - | |||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Emerging Markets ETF | - | 82,584 | 87,039 | (178,845 | ) | 3,961 | 5,261 | 913 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Developed ex-US ETF | 11.34% | - | 521,130 | (23,731 | ) | 1,962 | (186 | ) | 6,735 | 19,967 | 499,175 | ||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Emerging Market ETF | 3.51% | - | 166,388 | (3,324 | ) | (8,626 | ) | (209 | ) | 2,984 | 6,184 | 154,229 | |||||||||||||||||||||||||||||||||
Invesco S&P Emerging Markets Low Volatility ETF | 1.98% | 76,682 | 94,280 | (84,064 | ) | 980 | (632 | ) | 4,904 | 3,772 | 87,246 | ||||||||||||||||||||||||||||||||||
Invesco S&P International Developed Low Volatility ETF | 8.13% | 250,449 | 264,559 | (202,787 | ) | 37,331 | 8,006 | 13,717 | 10,343 | 357,558 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Foreign Equity Funds | 711,324 | 1,451,366 | (1,137,640 | ) | 48,873 | 24,285 | 35,416 | 1,098,208 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Money Market Funds-0.03% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Premier U.S. Government | |||||||||||||||||||||||||||||||||||||||||||||
Money Portfolio, Institutional Class, | 0.03% | - | 110,257 | (108,996 | ) | - | - | 46 | 1,261 | 1,261 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS | 100.02% | 2,690,181 | 6,147,058 | (4,855,654 | ) | 141,956 | 277,196 | 101,900 | 4,400,737 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
30 | ||||
|
| |||
Invesco Growth Multi-Asset Allocation ETF (PSMG)–(continued)
October 31, 2019
Schedule of Investments in Affiliated Issuers- 122.01%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds-21.99% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.71%(c)(d) | 16.51% | 726,652 | $ | 726,652 | |||||||||||||||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(c)(d) | 5.48% | 240,937 | 241,033 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $967,685) | 967,685 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS | 122.01% | 5,368,422 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS LESS LIABILITIES | (22.01)% | (968,386 | ) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
NET ASSETS | 100.00% | $ | 4,400,036 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Investment Abbreviations:
ETF-Exchange-Traded Fund
Notes to Schedule of Investments:
(a) | Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. |
(b) | All or a portion of this security was out on loan at October 31, 2019. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(d) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
31 | ||||
|
| |||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)
October 31, 2019
Schedule of Investments
Schedule of Investments in Affiliated Issuers- 119.03%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Domestic Equity Funds-35.94% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI US 1000 ETF | - | $ | 123,173 | $ | 282,231 | $ | (431,304 | ) | $ | (8,286 | ) | $ | 34,186 | $ | 3,671 | - | $ | - | |||||||||||||||||||||||||||
Invesco FTSE RAFI US 1500 Small-Mid ETF | - | 40,277 | 97,062 | (145,419 | ) | (2,569 | ) | 10,649 | 662 | - | - | ||||||||||||||||||||||||||||||||||
Invesco Preferred ETF(b) | 5.74% | 74,912 | 236,614 | (13,578 | ) | 18,961 | (247 | ) | 13,630 | 21,139 | 316,662 | ||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US ETF(b) | 9.84% | - | 549,969 | (29,317 | ) | 21,923 | 332 | 4,643 | 20,873 | 542,907 | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic US Small Company ETF | 3.77% | - | 215,977 | (9,369 | ) | 1,670 | (178 | ) | 1,044 | 8,878 | 208,100 | ||||||||||||||||||||||||||||||||||
Invesco S&P 500 GARP ETF | - | 105,775 | 241,358 | (391,366 | ) | (23,039 | ) | 67,272 | 1,602 | - | - | ||||||||||||||||||||||||||||||||||
Invesco S&P 500® Low Volatility ETF(b) | 5.24% | 66,322 | 216,637 | (31,962 | ) | 36,788 | 1,274 | 4,936 | 5,021 | 289,059 | |||||||||||||||||||||||||||||||||||
Invesco S&P 500® Pure Growth ETF | 9.08% | - | 502,395 | (5,873 | ) | 4,151 | 37 | 2,149 | 4,202 | 500,710 | |||||||||||||||||||||||||||||||||||
Invesco S&P MidCap Low Volatility ETF(b) | 2.27% | 17,698 | 104,090 | (7,133 | ) | 10,298 | 153 | 1,677 | 2,345 | 125,106 | |||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Domestic Equity Funds | 428,157 | 2,446,333 | (1,065,321 | ) | 59,897 | 113,478 | 34,014 | 1,982,544 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Fixed Income Funds-54.03% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco 1-30 Laddered Treasury ETF | - | 86,330 | 198,204 | (296,458 | ) | 4,043 | 7,881 | 2,640 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Corporate Income Defensive | 4.42% | - | �� | 244,282 | (3,562 | ) | 3,140 | (7 | ) | 4,510 | 9,444 | 243,853 | |||||||||||||||||||||||||||||||||
Invesco Corporate Income Value ETF(b) | 2.48% | - | 139,181 | (1,391 | ) | (1,199 | ) | (3 | ) | 3,714 | 5,576 | 136,588 | |||||||||||||||||||||||||||||||||
Invesco Emerging Markets Sovereign Debt ETF | 5.76% | 73,894 | 242,488 | (23,132 | ) | 26,252 | (1,497 | ) | 12,341 | 10,913 | 318,005 | ||||||||||||||||||||||||||||||||||
Invesco Fundamental High Yield® Corporate Bond ETF | - | 92,962 | 196,171 | (298,897 | ) | 3,162 | 6,602 | 5,730 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Fundamental Investment Grade Corporate Bond ETF | - | 149,169 | 327,077 | (490,474 | ) | 5,196 | 9,032 | 6,453 | - | - | |||||||||||||||||||||||||||||||||||
Invesco Investment Grade Defensive ETF | 7.37% | - | 405,816 | (9,439 | ) | 10,157 | (2 | ) | 4,162 | 15,434 | 406,532 | ||||||||||||||||||||||||||||||||||
Invesco Investment Grade Value ETF | 4.20% | - | 229,815 | (7,162 | ) | 9,111 | 42 | 2,983 | 8,527 | 231,806 | |||||||||||||||||||||||||||||||||||
Invesco PureBetaSM0-5 Yr US TIPS ETF | 5.63% | 68,813 | 251,517 | (12,631 | ) | 3,348 | (245 | ) | 4,784 | 12,482 | 310,802 | ||||||||||||||||||||||||||||||||||
Invesco Senior Loan ETF(b) | 4.32% | 62,817 | 202,144 | (22,794 | ) | (3,433 | ) | (449 | ) | 9,878 | 10,633 | 238,285 | |||||||||||||||||||||||||||||||||
Invesco Taxable Municipal Bond ETF | 7.28% | - | 408,721 | (23,944 | ) | 16,511 | 57 | 6,404 | 12,468 | 401,345 | |||||||||||||||||||||||||||||||||||
Invesco Variable Rate Investment Grade ETF | 12.57% | 161,829 | 557,575 | (25,799 | ) | 345 | (543 | ) | 16,766 | 27,803 | 693,407 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Fixed Income Funds | 695,814 | 3,402,991 | (1,215,683 | ) | 76,633 | 20,868 | 80,365 | 2,980,623 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Foreign Equity Funds-10.02% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco FTSE RAFI Developed Markets ex-U.S. ETF | - | 83,158 | 176,676 | (272,683 | ) | 422 | 12,427 | 3,029 | - | - | |||||||||||||||||||||||||||||||||||
Invesco RAFI™ Strategic Developed ex-US ETF | 5.02% | - | 290,133 | (18,879 | ) | 5,765 | (144 | ) | 3,352 | 11,075 | 276,875 | ||||||||||||||||||||||||||||||||||
Invesco S&P International Developed Low Volatility ETF | 5.00% | 68,866 | 210,948 | (29,427 | ) | 26,026 | (233 | ) | 8,109 | 7,989 | 276,180 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
Total Foreign Equity Funds | 152,024 | 677,757 | (320,989 | ) | 32,213 | 12,050 | 14,490 | 553,055 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
32 | ||||
|
| |||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)–(continued)
October 31, 2019
Schedule of Investments in Affiliated Issuers- 119.03%(a)
% of | Change in | ||||||||||||||||||||||||||||||||||||||||||||
Net | Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Assets | Value | Purchases | Proceeds | Appreciation | Realized | Dividend | Shares | Value | |||||||||||||||||||||||||||||||||||||
10/31/19 | 10/31/18 | at Cost | from Sales | (Depreciation) | Gain (Loss) | Income | 10/31/19 | 10/31/19 | |||||||||||||||||||||||||||||||||||||
Money Market Funds-0.02% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(c) | 0.02% | $ | - | $ | 134,072 | $ | (132,969 | ) | $ | - | $ | - | $ | 45 | 1,103 | $ | 1,103 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS | 100.01% | 1,275,995 | 6,661,153 | (2,734,962 | ) | 168,743 | 146,396 | 128,914 | 5,517,325 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds-19.02% | |||||||||||||||||||||||||||||||||||||||||||||
Invesco Government & Agency Portfolio, Institutional Class, | 14.26% | 786,816 | 786,816 | ||||||||||||||||||||||||||||||||||||||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(c)(d) | 4.76% | 262,167 | 262,272 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $1,049,088) | 1,049,088 | ||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN AFFILIATED ISSUERS (Cost $6,382,300) | 119.03% | 6,566,413 | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS LESS LIABILITIES | (19.03)% | (1,049,925 | ) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||
NET ASSETS | 100.00% | $ | 5,516,488 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Investment Abbreviations:
ETF-Exchange-Traded Fund
Notes to Schedule of Investments:
(a) | Each underlying fund and the Fund are affiliated by either having the same investment adviser or an investment adviser under common control with the Fund’s investment adviser. |
(b) | All or a portion of this security was out on loan at October 31, 2019. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(d) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
33 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)
October 31, 2019
Schedule of Investments(a)
Shares | Value | |||||||||
Common Stocks & Other Equity Interests-77.49% |
| |||||||||
Communication Services-8.08% |
| |||||||||
Activision Blizzard, Inc. | 472 | $ | 26,446 | |||||||
Alphabet, Inc., Class A(b) | 185 | 232,878 | ||||||||
Alphabet, Inc., Class C(b) | 186 | 234,380 | ||||||||
AT&T, Inc. | 4,495 | 173,013 | ||||||||
CBS Corp., Class B. | 202 | 7,280 | ||||||||
CenturyLink, Inc. | 604 | 7,816 | ||||||||
Charter Communications, Inc., | 99 | 46,318 | ||||||||
Comcast Corp., Class A. | 2,790 | 125,048 | ||||||||
Discovery, Inc., Class A(b)(c) | 97 | 2,615 | ||||||||
Discovery, Inc., Class C(b) | 214 | 5,401 | ||||||||
DISH Network Corp., Class A(b) | 148 | 5,088 | ||||||||
Electronic Arts, Inc.(b) | 181 | 17,448 | ||||||||
Facebook, Inc., Class A(b) | 1,480 | 283,642 | ||||||||
Fox Corp., Class A | 218 | 6,985 | ||||||||
Fox Corp., Class B | 100 | 3,124 | ||||||||
Interpublic Group of Cos., Inc. (The) | 238 | 5,177 | ||||||||
Netflix, Inc.(b) | 269 | 77,313 | ||||||||
News Corp., Class A | 237 | 3,249 | ||||||||
News Corp., Class B | 75 | 1,059 | ||||||||
Omnicom Group, Inc. | 134 | 10,343 | ||||||||
Take-Two Interactive Software, Inc.(b) | 69 | 8,304 | ||||||||
T-Mobile US, Inc.(b) | 194 | 16,036 | ||||||||
TripAdvisor, Inc.(b) | 65 | 2,626 | ||||||||
Twitter, Inc.(b) | 475 | 14,236 | ||||||||
Verizon Communications, Inc. | 2,544 | 153,836 | ||||||||
Viacom, Inc., Class B | 217 | 4,679 | ||||||||
Walt Disney Co. (The) | 1,108 | 143,951 | ||||||||
|
| |||||||||
1,618,291 | ||||||||||
|
| |||||||||
Consumer Discretionary-7.75% | ||||||||||
Advance Auto Parts, Inc. | 44 | 7,149 | ||||||||
Amazon.com, Inc.(b) | 256 | 454,825 | ||||||||
Aptiv PLC | 157 | 14,059 | ||||||||
AutoZone, Inc.(b) | 15 | 17,166 | ||||||||
Best Buy Co., Inc. | 142 | 10,200 | ||||||||
Booking Holdings, Inc.(b) | 26 | 53,268 | ||||||||
BorgWarner, Inc. | 127 | 5,293 | ||||||||
Capri Holdings Ltd.(b) | 93 | 2,890 | ||||||||
CarMax, Inc.(b) | 102 | 9,503 | ||||||||
Carnival Corp. | 247 | 10,594 | ||||||||
Chipotle Mexican Grill, Inc.(b) | 16 | 12,451 | ||||||||
D.R. Horton, Inc. | 207 | 10,841 | ||||||||
Darden Restaurants, Inc. | 76 | 8,533 | ||||||||
Dollar General Corp. | 158 | 25,334 | ||||||||
Dollar Tree, Inc.(b) | 145 | 16,008 | ||||||||
eBay, Inc. | 485 | 17,096 | ||||||||
Expedia Group, Inc. | 86 | 11,753 | ||||||||
Ford Motor Co. | 2,411 | 20,710 | ||||||||
Gap, Inc. (The) | 132 | 2,146 | ||||||||
Garmin Ltd. | 89 | 8,344 | ||||||||
General Motors Co. | 772 | 28,688 | ||||||||
Genuine Parts Co. | 90 | 9,232 | ||||||||
H&R Block, Inc. | 124 | 3,099 | ||||||||
Hanesbrands, Inc. | 222 | 3,377 | ||||||||
Harley-Davidson, Inc. | 97 | 3,774 | ||||||||
Hasbro, Inc. | 72 | 7,006 | ||||||||
Hilton Worldwide Holdings, Inc. | 176 | 17,065 |
Shares | Value | |||||||||
Consumer Discretionary-(continued) |
| |||||||||
Home Depot, Inc. (The) | 674 | $ | 158,107 | |||||||
Kohl’s Corp. | 97 | 4,972 | ||||||||
L Brands, Inc. | �� | 142 | 2,420 | |||||||
Las Vegas Sands Corp. | 208 | 12,863 | ||||||||
Leggett & Platt, Inc. | 81 | 4,155 | ||||||||
Lennar Corp., Class A | 175 | 10,430 | ||||||||
LKQ Corp.(b) | 189 | 6,424 | ||||||||
Lowe’s Cos., Inc. | 474 | 52,903 | ||||||||
Macy’s, Inc. | 190 | 2,880 | ||||||||
Marriott International, Inc., Class A | 168 | 21,260 | ||||||||
McDonald’s Corp. | 467 | 91,859 | ||||||||
MGM Resorts International | 321 | 9,149 | ||||||||
Mohawk Industries, Inc.(b) | 37 | 5,305 | ||||||||
Newell Brands, Inc. | 234 | 4,439 | ||||||||
NIKE, Inc., Class B | 770 | 68,954 | ||||||||
Nordstrom, Inc.(c) | 66 | 2,369 | ||||||||
Norwegian Cruise Line Holdings Ltd.(b) | 132 | 6,700 | ||||||||
NVR, Inc.(b) | 2 | 7,273 | ||||||||
O’Reilly Automotive, Inc.(b) | 47 | 20,469 | ||||||||
PulteGroup, Inc. | 158 | 6,200 | ||||||||
PVH Corp. | 46 | 4,009 | ||||||||
Ralph Lauren Corp. | 32 | 3,074 | ||||||||
Ross Stores, Inc. | 224 | 24,566 | ||||||||
Royal Caribbean Cruises Ltd. | 106 | 11,536 | ||||||||
Starbucks Corp. | 736 | 62,236 | ||||||||
Tapestry, Inc. | 176 | 4,551 | ||||||||
Target Corp. | 314 | 33,570 | ||||||||
Tiffany & Co. | 67 | 8,342 | ||||||||
TJX Cos., Inc. (The) | 743 | 42,834 | ||||||||
Tractor Supply Co. | 73 | 6,936 | ||||||||
Ulta Beauty, Inc.(b) | 37 | 8,627 | ||||||||
Under Armour, Inc., Class A(b)(c) | 115 | 2,375 | ||||||||
Under Armour, Inc., Class C(b) | 120 | 2,220 | ||||||||
VF Corp. | 201 | 16,540 | ||||||||
Whirlpool Corp. | 39 | 5,933 | ||||||||
Wynn Resorts, Ltd. | 60 | 7,280 | ||||||||
Yum! Brands, Inc. | 187 | 19,020 | ||||||||
|
| |||||||||
1,553,184 | ||||||||||
|
| |||||||||
Consumer Staples-5.74% | ||||||||||
Altria Group, Inc. | 1,149 | 51,464 | ||||||||
Archer-Daniels-Midland Co. | 342 | 14,378 | ||||||||
Brown-Forman Corp., Class B | 112 | 7,338 | ||||||||
Campbell Soup Co. | 104 | 4,816 | ||||||||
Church & Dwight Co., Inc. | 152 | 10,631 | ||||||||
Clorox Co. (The) | 78 | 11,520 | ||||||||
Coca-Cola Co. (The) | 2,367 | 128,836 | ||||||||
Colgate-Palmolive Co. | 528 | 36,221 | ||||||||
Conagra Brands, Inc. | 299 | 8,088 | ||||||||
Constellation Brands, Inc., Class A | 103 | 19,604 | ||||||||
Costco Wholesale Corp. | 271 | 80,517 | ||||||||
Coty, Inc., Class A | 181 | 2,116 | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 136 | 25,333 | ||||||||
General Mills, Inc. | 371 | 18,869 | ||||||||
Hershey Co. (The) | 92 | 13,512 | ||||||||
Hormel Foods Corp. | 171 | 6,992 | ||||||||
JM Smucker Co. (The) | 70 | 7,398 | ||||||||
Kellogg Co. | 153 | 9,720 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
34 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)–(continued)
October 31, 2019
Shares | Value | |||||||||
Consumer Staples-(continued) | ||||||||||
Kimberly-Clark Corp. | 212 | $ | 28,170 | |||||||
Kraft Heinz Co. (The) | 382 | 12,350 | ||||||||
Kroger Co. (The) | 491 | 12,098 | ||||||||
Lamb Weston Holdings, Inc. | 90 | 7,024 | ||||||||
McCormick & Co., Inc. | 76 | 12,212 | ||||||||
Molson Coors Brewing Co., Class B | 115 | 6,063 | ||||||||
Mondelez International, Inc., Class A | 887 | 46,523 | ||||||||
Monster Beverage Corp.(b) | 238 | 13,359 | ||||||||
PepsiCo, Inc. | 861 | 118,103 | ||||||||
Philip Morris International, Inc. | 957 | 77,938 | ||||||||
Procter & Gamble Co. (The) | 1,539 | 191,621 | ||||||||
Sysco Corp. | 316 | 25,239 | ||||||||
Tyson Foods, Inc., Class A | 181 | 14,985 | ||||||||
Walgreens Boots Alliance, Inc. | 467 | 25,582 | ||||||||
Walmart, Inc. | 875 | 102,602 | ||||||||
|
| |||||||||
1,151,222 | ||||||||||
|
| |||||||||
Energy-3.35% | ||||||||||
Apache Corp. | 232 | 5,025 | ||||||||
Baker Hughes Co. | 399 | 8,539 | ||||||||
Cabot Oil & Gas Corp. | 258 | 4,809 | ||||||||
Chevron Corp. | 1,168 | 135,652 | ||||||||
Cimarex Energy Co. | 63 | 2,660 | ||||||||
Concho Resources, Inc. | 124 | 8,373 | ||||||||
ConocoPhillips | 682 | 37,646 | ||||||||
Devon Energy Corp. | 248 | 5,029 | ||||||||
Diamondback Energy, Inc. | 100 | 8,576 | ||||||||
EOG Resources, Inc. | 357 | 24,744 | ||||||||
Exxon Mobil Corp. | 2,603 | 175,885 | ||||||||
Halliburton Co. | 539 | 10,376 | ||||||||
Helmerich & Payne, Inc. | 67 | 2,513 | ||||||||
Hess Corp. | 159 | 10,454 | ||||||||
HollyFrontier Corp. | 93 | 5,109 | ||||||||
Kinder Morgan, Inc. | 1,198 | 23,936 | ||||||||
Marathon Oil Corp. | 495 | 5,707 | ||||||||
Marathon Petroleum Corp. | 405 | 25,900 | ||||||||
National Oilwell Varco, Inc. | 237 | 5,361 | ||||||||
Noble Energy, Inc. | 294 | 5,662 | ||||||||
Occidental Petroleum Corp. | 550 | 22,275 | ||||||||
ONEOK, Inc. | 254 | 17,737 | ||||||||
Phillips 66 | 276 | 32,242 | ||||||||
Pioneer Natural Resources Co. | 103 | 12,671 | ||||||||
Schlumberger Ltd. | 851 | 27,819 | ||||||||
TechnipFMC PLC (United Kingdom) | 258 | 5,090 | ||||||||
Valero Energy Corp. | 255 | 24,730 | ||||||||
Williams Cos., Inc. (The) | 745 | 16,621 | ||||||||
|
| |||||||||
671,141 | ||||||||||
|
| |||||||||
Financials-10.07% | ||||||||||
Affiliated Managers Group, Inc. | 31 | 2,476 | ||||||||
Aflac, Inc. | 456 | 24,241 | ||||||||
Allstate Corp. (The) | 202 | 21,497 | ||||||||
American Express Co. | 418 | 49,023 | ||||||||
American International Group, Inc. | 535 | 28,334 | ||||||||
Ameriprise Financial, Inc. | 81 | 12,222 | ||||||||
Aon PLC | 145 | 28,008 | ||||||||
Arthur J. Gallagher & Co. | 114 | 10,399 | ||||||||
Assurant, Inc. | 37 | 4,665 | ||||||||
Bank of America Corp. | 5,153 | 161,134 | ||||||||
Bank of New York Mellon Corp. (The) | 528 | 24,684 | ||||||||
BB&T Corp. | 472 | 25,040 |
Shares | Value | |||||||||
Financials-(continued) | ||||||||||
Berkshire Hathaway, Inc., Class B(b) | 1,207 | $ | 256,584 | |||||||
BlackRock, Inc. | 72 | 33,242 | ||||||||
Capital One Financial Corp. | 290 | 27,042 | ||||||||
Cboe Global Markets, Inc. | 94 | 10,824 | ||||||||
Charles Schwab Corp. (The) | 715 | 29,108 | ||||||||
Chubb Ltd. | 280 | 42,678 | ||||||||
Cincinnati Financial Corp. | 94 | 10,642 | ||||||||
Citigroup, Inc. | 1,389 | 99,814 | ||||||||
Citizens Financial Group, Inc. | 275 | 9,669 | ||||||||
CME Group, Inc., Class A | 220 | 45,265 | ||||||||
Comerica, Inc. | 92 | 6,019 | ||||||||
Discover Financial Services | 196 | 15,731 | ||||||||
E*TRADE Financial Corp. | 147 | 6,143 | ||||||||
Everest Re Group, Ltd. | 25 | 6,427 | ||||||||
Fifth Third Bancorp | 449 | 13,057 | ||||||||
First Republic Bank | 103 | 10,955 | ||||||||
Franklin Resources, Inc. | 173 | 4,766 | ||||||||
Globe Life, Inc. | 62 | 6,034 | ||||||||
Goldman Sachs Group, Inc. (The) | 199 | 42,463 | ||||||||
Hartford Financial Services Group, Inc. (The) | 222 | 12,672 | ||||||||
Huntington Bancshares, Inc. | 638 | 9,015 | ||||||||
Intercontinental Exchange, Inc. | 345 | 32,540 | ||||||||
Invesco Ltd.(d) | 460 | 7,737 | ||||||||
JPMorgan Chase & Co. | 1,967 | 245,718 | ||||||||
KeyCorp | 617 | 11,087 | ||||||||
Lincoln National Corp. | 123 | 6,947 | ||||||||
Loews Corp. | 160 | 7,840 | ||||||||
M&T Bank Corp. | 82 | 12,835 | ||||||||
MarketAxess Holdings, Inc. | 23 | 8,478 | ||||||||
Marsh & McLennan Cos., Inc. | 311 | 32,226 | ||||||||
MetLife, Inc. | 489 | 22,880 | ||||||||
Moody’s Corp. | 100 | 22,069 | ||||||||
Morgan Stanley | 772 | 35,551 | ||||||||
MSCI, Inc. | 52 | 12,197 | ||||||||
Nasdaq, Inc. | 71 | 7,084 | ||||||||
Northern Trust Corp. | 132 | 13,158 | ||||||||
People’s United Financial, Inc. | 246 | 3,978 | ||||||||
PNC Financial Services Group, Inc. (The) | 274 | 40,196 | ||||||||
Principal Financial Group, Inc. | 159 | 8,487 | ||||||||
Progressive Corp. (The) | 360 | 25,092 | ||||||||
Prudential Financial, Inc. | 247 | 22,512 | ||||||||
Raymond James Financial, Inc. | 76 | 6,345 | ||||||||
Regions Financial Corp. | 614 | 9,885 | ||||||||
S&P Global, Inc. | 152 | 39,214 | ||||||||
State Street Corp. | 229 | 15,130 | ||||||||
SunTrust Banks, Inc. | 273 | 18,657 | ||||||||
SVB Financial Group(b) | 32 | 7,087 | ||||||||
Synchrony Financial | 376 | 13,299 | ||||||||
T. Rowe Price Group, Inc. | 145 | 16,791 | ||||||||
Travelers Cos., Inc. (The) | 160 | 20,970 | ||||||||
U.S. Bancorp | 882 | 50,292 | ||||||||
Unum Group | 128 | 3,525 | ||||||||
Wells Fargo & Co. | 2,467 | 127,371 | ||||||||
Willis Towers Watson PLC | 80 | 14,952 | ||||||||
Zions Bancorp. N.A | 109 | 5,283 | ||||||||
|
| |||||||||
2,017,286 | ||||||||||
|
| |||||||||
Health Care-10.86% | ||||||||||
Abbott Laboratories | 1,087 | 90,884 | ||||||||
AbbVie, Inc. | 909 | 72,311 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
35 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)–(continued)
October 31, 2019
Shares | Value | |||||||
Health Care-(continued) | ||||||||
ABIOMED, Inc.(b) | 28 | $ | 5,812 | |||||
Agilent Technologies, Inc. | 190 | 14,393 | ||||||
Alexion Pharmaceuticals, Inc.(b) | 138 | 14,545 | ||||||
Align Technology, Inc.(b) | 45 | 11,353 | ||||||
Allergan PLC | 202 | 35,574 | ||||||
AmerisourceBergen Corp. | 94 | 8,026 | ||||||
Amgen, Inc. | 369 | 78,689 | ||||||
Anthem, Inc. | 157 | 42,246 | ||||||
Baxter International, Inc. | 314 | 24,084 | ||||||
Becton, Dickinson and Co. | 166 | 42,496 | ||||||
Biogen, Inc.(b) | 113 | 33,754 | ||||||
Boston Scientific Corp.(b) | 857 | 35,737 | ||||||
Bristol-Myers Squibb Co. | 1,006 | 57,714 | ||||||
Cardinal Health, Inc. | 184 | 9,099 | ||||||
Celgene Corp.(b) | 436 | 47,101 | ||||||
Centene Corp.(b) | 254 | 13,482 | ||||||
Cerner Corp. | 196 | 13,156 | ||||||
Cigna Corp. | 232 | 41,403 | ||||||
Cooper Cos., Inc. (The) | 31 | 9,021 | ||||||
CVS Health Corp. | 800 | 53,112 | ||||||
Danaher Corp. | 393 | 54,163 | ||||||
DaVita, Inc.(b) | 60 | 3,516 | ||||||
DENTSPLY SIRONA, Inc. | 138 | 7,560 | ||||||
Edwards Lifesciences Corp.(b) | 127 | 30,274 | ||||||
Eli Lilly and Co. | 523 | 59,596 | ||||||
Gilead Sciences, Inc. | 779 | 49,630 | ||||||
HCA Healthcare, Inc. | 164 | 21,901 | ||||||
Henry Schein, Inc.(b) | 91 | 5,695 | ||||||
Hologic, Inc.(b) | 164 | 7,923 | ||||||
Humana, Inc. | 83 | 24,419 | ||||||
IDEXX Laboratories, Inc.(b) | 52 | 14,821 | ||||||
Illumina, Inc.(b) | 90 | 26,597 | ||||||
Incyte Corp.(b) | 110 | 9,231 | ||||||
Intuitive Surgical, Inc.(b) | 71 | 39,259 | ||||||
IQVIA Holdings, Inc.(b) | 112 | 16,175 | ||||||
Johnson & Johnson | 1,624 | 214,433 | ||||||
Laboratory Corp. of America Holdings(b) | 60 | 9,886 | ||||||
McKesson Corp. | 113 | 15,029 | ||||||
Medtronic PLC | 825 | 89,842 | ||||||
Merck & Co., Inc. | 1,575 | 136,489 | ||||||
Mettler-Toledo International, Inc.(b) | 15 | 10,574 | ||||||
Mylan N.V.(b) | 318 | 6,090 | ||||||
PerkinElmer, Inc. | 68 | 5,845 | ||||||
Perrigo Co. PLC | 83 | 4,401 | ||||||
Pfizer, Inc. | 3,403 | 130,573 | ||||||
Quest Diagnostics, Inc. | 82 | 8,303 | ||||||
Regeneron Pharmaceuticals, Inc.(b) | 49 | 15,008 | ||||||
ResMed, Inc. | 88 | 13,017 | ||||||
Stryker Corp. | 198 | 42,821 | ||||||
Teleflex, Inc. | 28 | 9,727 | ||||||
Thermo Fisher Scientific, Inc. | 247 | 74,589 | ||||||
UnitedHealth Group, Inc. | 583 | 147,324 | ||||||
Universal Health Services, Inc., Class B | 50 | 6,873 | ||||||
Varian Medical Systems, Inc.(b) | 56 | 6,765 | ||||||
Vertex Pharmaceuticals, Inc.(b) | 158 | 30,886 | ||||||
Waters Corp.(b) | 41 | 8,676 | ||||||
WellCare Health Plans, Inc.(b) | 31 | 9,195 |
Shares | Value | |||||||
Health Care-(continued) | ||||||||
Zimmer Biomet Holdings, Inc. | 127 | $ | 17,555 | |||||
Zoetis, Inc. | 293 | 37,481 | ||||||
|
| |||||||
2,176,134 | ||||||||
|
| |||||||
Industrials-7.16% | ||||||||
3M Co. | 354 | 58,406 | ||||||
A.O. Smith Corp. | 85 | 4,223 | ||||||
Alaska Air Group, Inc. | 76 | 5,277 | ||||||
Allegion PLC | 57 | 6,614 | ||||||
American Airlines Group, Inc. | 244 | 7,335 | ||||||
AMETEK, Inc. | 141 | 12,923 | ||||||
Arconic, Inc. | 238 | 6,538 | ||||||
Boeing Co. (The) | 329 | 111,830 | ||||||
C.H. Robinson Worldwide, Inc. | 83 | 6,278 | ||||||
Caterpillar, Inc. | 346 | 47,679 | ||||||
Cintas Corp. | 51 | 13,702 | ||||||
Copart, Inc.(b) | 124 | 10,247 | ||||||
CSX Corp. | 491 | 34,503 | ||||||
Cummins, Inc. | 97 | 16,731 | ||||||
Deere & Co. | 194 | 33,783 | ||||||
Delta Air Lines, Inc. | 356 | 19,608 | ||||||
Dover Corp. | 89 | 9,246 | ||||||
Eaton Corp. PLC | 259 | 22,562 | ||||||
Emerson Electric Co. | 379 | 26,587 | ||||||
Equifax, Inc. | 74 | 10,117 | ||||||
Expeditors International of Washington, Inc. | 105 | 7,659 | ||||||
Fastenal Co. | 352 | 12,651 | ||||||
FedEx Corp. | 147 | 22,441 | ||||||
Flowserve Corp. | 81 | 3,956 | ||||||
Fortive Corp. | 182 | 12,558 | ||||||
Fortune Brands Home & Security, Inc. | 86 | 5,164 | ||||||
General Dynamics Corp. | 144 | 25,459 | ||||||
General Electric Co. | 5,369 | 53,583 | ||||||
Honeywell International, Inc. | 442 | 76,347 | ||||||
Huntington Ingalls Industries, Inc. | 25 | 5,642 | ||||||
IDEX Corp. | 47 | 7,310 | ||||||
IHS Markit Ltd.(b) | 247 | 17,295 | ||||||
Illinois Tool Works, Inc. | 181 | 30,513 | ||||||
Ingersoll-Rand PLC | 149 | 18,907 | ||||||
J.B. Hunt Transport Services, Inc. | 52 | 6,113 | ||||||
Jacobs Engineering Group, Inc. | 83 | 7,767 | ||||||
Johnson Controls International PLC | 489 | 21,188 | ||||||
Kansas City Southern | 62 | 8,728 | ||||||
L3Harris Technologies, Inc. | 138 | 28,471 | ||||||
Lockheed Martin Corp. | 153 | 57,632 | ||||||
Masco Corp. | 178 | 8,233 | ||||||
Nielsen Holdings PLC | 218 | 4,395 | ||||||
Norfolk Southern Corp. | 162 | 29,484 | ||||||
Northrop Grumman Corp. | 97 | 34,191 | ||||||
PACCAR, Inc. | 213 | 16,201 | ||||||
Parker-Hannifin Corp. | 79 | 14,496 | ||||||
Pentair PLC | 103 | 4,271 | ||||||
Quanta Services, Inc. | 87 | 3,658 | ||||||
Raytheon Co. | 172 | 36,500 | ||||||
Republic Services, Inc. | 130 | 11,376 | ||||||
Robert Half International, Inc. | 72 | 4,123 | ||||||
Rockwell Automation, Inc. | 72 | 12,383 | ||||||
Rollins, Inc. | 86 | 3,277 | ||||||
Roper Technologies, Inc. | 64 | 21,565 | ||||||
Snap-on, Inc. | 34 | 5,531 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
36 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)–(continued)
October 31, 2019
Shares | Value | |||||||
Industrials-(continued) | ||||||||
Southwest Airlines Co. | 297 | $ | 16,671 | |||||
Stanley Black & Decker, Inc. | 94 | 14,225 | ||||||
Textron, Inc. | 142 | 6,545 | ||||||
TransDigm Group, Inc. | 31 | 16,315 | ||||||
Union Pacific Corp. | 433 | 71,644 | ||||||
United Airlines Holdings, Inc.(b) | 136 | 12,354 | ||||||
United Parcel Service, Inc., Class B | 429 | 49,408 | ||||||
United Rentals, Inc.(b) | 48 | 6,411 | ||||||
United Technologies Corp. | 499 | 71,646 | ||||||
Verisk Analytics, Inc. | 100 | 14,470 | ||||||
W.W. Grainger, Inc. | 27 | 8,339 | ||||||
Wabtec Corp. | 112 | 7,769 | ||||||
Waste Management, Inc. | 240 | 26,930 | ||||||
Xylem, Inc. | 111 | 8,513 | ||||||
|
| |||||||
1,434,497 | ||||||||
|
| |||||||
Information Technology-17.27% | ||||||||
Accenture PLC, Class A | 392 | 72,685 | ||||||
Adobe, Inc.(b) | 299 | 83,101 | ||||||
Advanced Micro Devices, Inc.(b) | 667 | 22,631 | ||||||
Akamai Technologies, Inc.(b) | 101 | 8,737 | ||||||
Alliance Data Systems Corp. | 25 | 2,500 | ||||||
Amphenol Corp., Class A | 183 | 18,360 | ||||||
Analog Devices, Inc. | 227 | 24,205 | ||||||
ANSYS, Inc.(b) | 52 | 11,448 | ||||||
Apple, Inc. | 2,614 | 650,259 | ||||||
Applied Materials, Inc. | 568 | 30,820 | ||||||
Arista Networks, Inc.(b) | 34 | 8,315 | ||||||
Autodesk, Inc.(b) | 135 | 19,894 | ||||||
Automatic Data Processing, Inc. | 267 | 43,315 | ||||||
Broadcom, Inc. | 245 | 71,748 | ||||||
Broadridge Financial Solutions, Inc. | 70 | 8,765 | ||||||
Cadence Design Systems, Inc.(b) | 172 | 11,240 | ||||||
CDW Corp. | 89 | 11,384 | ||||||
Cisco Systems, Inc. | 2,612 | 124,096 | ||||||
Citrix Systems, Inc. | 76 | 8,273 | ||||||
Cognizant Technology Solutions Corp., Class A | 339 | 20,659 | ||||||
Corning, Inc. | 480 | 14,222 | ||||||
DXC Technology Co. | 161 | 4,455 | ||||||
F5 Networks, Inc.(b) | 37 | 5,331 | ||||||
Fidelity National Information Services, Inc. | 378 | 49,805 | ||||||
Fiserv, Inc.(b) | 352 | 37,361 | ||||||
FleetCor Technologies, Inc.(b) | 53 | 15,594 | ||||||
FLIR Systems, Inc. | 83 | 4,280 | ||||||
Fortinet, Inc.(b) | 87 | 7,096 | ||||||
Gartner, Inc.(b) | 55 | 8,474 | ||||||
Global Payments, Inc. | 185 | 31,298 | ||||||
Hewlett Packard Enterprise Co. | 803 | 13,177 | ||||||
HP, Inc. | 911 | 15,824 | ||||||
Intel Corp. | 2,725 | 154,044 | ||||||
International Business Machines Corp. | 545 | 72,883 | ||||||
Intuit, Inc. | 160 | 41,200 | ||||||
IPG Photonics Corp.(b) | 22 | 2,954 | ||||||
Jack Henry & Associates, Inc. | 48 | 6,795 | ||||||
Juniper Networks, Inc. | 213 | 5,287 | ||||||
Keysight Technologies, Inc.(b) | 115 | 11,605 | ||||||
KLA Corp. | 98 | 16,566 | ||||||
Lam Research Corp. | 89 | 24,123 | ||||||
Leidos Holdings, Inc. | 83 | 7,157 | ||||||
Mastercard, Inc., Class A | 549 | 151,969 |
Shares | Value | |||||||
Information Technology-(continued) |
| |||||||
Maxim Integrated Products, Inc. | 167 | $ | 9,796 | |||||
Microchip Technology, Inc. | 146 | 13,766 | ||||||
Micron Technology, Inc.(b) | 679 | 32,287 | ||||||
Microsoft Corp. | 4,697 | 673,409 | ||||||
Motorola Solutions, Inc. | 102 | 16,965 | ||||||
NetApp, Inc. | 146 | 8,159 | ||||||
NVIDIA Corp. | 375 | 75,383 | ||||||
Oracle Corp. | 1,355 | 73,834 | ||||||
Paychex, Inc. | 197 | 16,477 | ||||||
PayPal Holdings, Inc.(b) | 724 | 75,368 | ||||||
Qorvo, Inc.(b) | 72 | 5,822 | ||||||
QUALCOMM, Inc. | 748 | 60,169 | ||||||
salesforce.com, inc.(b) | 540 | 84,505 | ||||||
Seagate Technology PLC | 145 | 8,414 | ||||||
Skyworks Solutions, Inc. | 106 | 9,652 | ||||||
Symantec Corp. | 350 | 8,008 | ||||||
Synopsys, Inc.(b) | 93 | 12,625 | ||||||
TE Connectivity Ltd. | 206 | 18,437 | ||||||
Texas Instruments, Inc. | 575 | 67,844 | ||||||
VeriSign, Inc.(b) | 64 | 12,161 | ||||||
Visa, Inc., Class A | 1,062 | 189,949 | ||||||
Western Digital Corp. | 182 | 9,400 | ||||||
Western Union Co. (The) | 261 | 6,541 | ||||||
Xerox Holdings Corp. | 117 | 3,970 | ||||||
Xilinx, Inc. | 156 | 14,155 | ||||||
|
| |||||||
3,461,031 | ||||||||
|
| |||||||
Materials-2.07% | ||||||||
Air Products and Chemicals, Inc. | 136 | 29,003 | ||||||
Albemarle Corp.(c) | 66 | 4,009 | ||||||
Amcor PLC | 999 | 9,510 | ||||||
Avery Dennison Corp. | 52 | 6,649 | ||||||
Ball Corp. | 204 | 14,274 | ||||||
Celanese Corp. | 76 | 9,207 | ||||||
CF Industries Holdings, Inc. | 134 | 6,077 | ||||||
Corteva, Inc. | 460 | 12,135 | ||||||
Dow, Inc. | 457 | 23,074 | ||||||
DuPont de Nemours, Inc. | 458 | 30,187 | ||||||
Eastman Chemical Co. | 84 | 6,387 | ||||||
Ecolab, Inc. | 154 | 29,579 | ||||||
FMC Corp. | 81 | 7,411 | ||||||
Freeport-McMoRan, Inc. | 892 | 8,759 | ||||||
International Flavors & Fragrances, Inc. | 66 | 8,053 | ||||||
International Paper Co. | 242 | 10,571 | ||||||
Linde PLC (United Kingdom) | 333 | 66,051 | ||||||
LyondellBasell Industries N.V., Class A | 158 | 14,173 | ||||||
Martin Marietta Materials, Inc. | 38 | 9,953 | ||||||
Mosaic Co. (The) | 218 | 4,334 | ||||||
Newmont Goldcorp Corp. | 504 | 20,024 | ||||||
Nucor Corp. | 187 | 10,070 | ||||||
Packaging Corp. of America | 58 | 6,349 | ||||||
PPG Industries, Inc. | 145 | 18,142 | ||||||
Sealed Air Corp. | 95 | 3,968 | ||||||
Sherwin-Williams Co. (The) | 51 | 29,188 | ||||||
Vulcan Materials Co. | 82 | 11,715 | ||||||
Westrock Co. | 158 | 5,904 | ||||||
|
| |||||||
414,756 | ||||||||
|
| |||||||
Real Estate-2.44% | ||||||||
Alexandria Real Estate Equities, Inc. | 69 | 10,954 | ||||||
American Tower Corp. | 272 | 59,318 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
37 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)–(continued)
October 31, 2019
Shares | Value | |||||||
Real Estate-(continued) | ||||||||
Apartment Investment & Management Co., Class A | 92 | $ | 5,049 | |||||
AvalonBay Communities, Inc. | 86 | 18,719 | ||||||
Boston Properties, Inc. | 88 | 12,074 | ||||||
CBRE Group, Inc., Class A(b) | 207 | 11,085 | ||||||
Crown Castle International Corp. | 256 | 35,530 | ||||||
Digital Realty Trust, Inc. | 128 | 16,261 | ||||||
Duke Realty Corp. | 222 | 7,801 | ||||||
Equinix, Inc. | 52 | 29,473 | ||||||
Equity Residential | 215 | 19,062 | ||||||
Essex Property Trust, Inc. | 40 | 13,085 | ||||||
Extra Space Storage, Inc. | 79 | 8,869 | ||||||
Federal Realty Investment Trust | 43 | 5,848 | ||||||
HCP, Inc. | 302 | 11,361 | ||||||
Host Hotels & Resorts, Inc. | 449 | 7,359 | ||||||
Iron Mountain, Inc. | 176 | 5,773 | ||||||
Kimco Realty Corp. | 260 | 5,606 | ||||||
Macerich Co. (The)(c) | 67 | 1,842 | ||||||
Mid-America Apartment Communities, Inc. | 70 | 9,729 | ||||||
Prologis, Inc. | 388 | 34,051 | ||||||
Public Storage | 93 | 20,726 | ||||||
Realty Income Corp. | 196 | 16,031 | ||||||
Regency Centers Corp. | 103 | 6,926 | ||||||
SBA Communications Corp., Class A | 69 | 16,605 | ||||||
Simon Property Group, Inc. | 189 | 28,478 | ||||||
SL Green Realty Corp. | 51 | 4,264 | ||||||
UDR, Inc. | 180 | 9,045 | ||||||
Ventas, Inc. | 229 | 14,908 | ||||||
Vornado Realty Trust | 97 | 6,366 | ||||||
Welltower, Inc. | 249 | 22,582 | ||||||
Weyerhaeuser Co. | 458 | 13,378 | ||||||
|
| |||||||
488,158 | ||||||||
|
| |||||||
Utilities-2.70% | ||||||||
AES Corp. (The) | 409 | 6,973 | ||||||
Alliant Energy Corp. | 146 | 7,788 | ||||||
Ameren Corp. | 151 | 11,733 | ||||||
American Electric Power Co., Inc. | 304 | 28,695 | ||||||
American Water Works Co., Inc. | 112 | 13,806 | ||||||
Atmos Energy Corp. | 73 | 8,211 | ||||||
CenterPoint Energy, Inc. | 309 | 8,983 | ||||||
CMS Energy Corp. | 174 | 11,122 | ||||||
Consolidated Edison, Inc. | 204 | 18,813 | ||||||
Dominion Energy, Inc. | 505 | 41,688 | ||||||
DTE Energy Co. | 112 | 14,260 | ||||||
Duke Energy Corp. | 448 | 42,228 | ||||||
Edison International | 220 | 13,838 |
Shares | Value | |||||||
Utilities-(continued) | ||||||||
Entergy Corp. | 122 | $ | 14,821 | |||||
Evergy, Inc. | 145 | 9,267 | ||||||
Eversource Energy | 199 | 16,664 | ||||||
Exelon Corp. | 598 | 27,203 | ||||||
FirstEnergy Corp. | 332 | 16,042 | ||||||
NextEra Energy, Inc. | 301 | 71,740 | ||||||
NiSource, Inc. | 230 | 6,449 | ||||||
NRG Energy, Inc. | 156 | 6,259 | ||||||
Pinnacle West Capital Corp. | 69 | 6,494 | ||||||
PPL Corp. | 444 | 14,870 | ||||||
Public Service Enterprise Group, Inc. | 311 | 19,689 | ||||||
Sempra Energy | 169 | 24,422 | ||||||
Southern Co. (The) | 643 | 40,290 | ||||||
WEC Energy Group, Inc. | 194 | 18,314 | ||||||
Xcel Energy, Inc. | 322 | 20,450 | ||||||
|
| |||||||
541,112 | ||||||||
|
| |||||||
Total Common Stocks & Other Equity Interests | 15,526,812 | |||||||
|
| |||||||
Money Market Funds-9.15% | ||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(e) | 1,833,025 | 1,833,025 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES |
| 17,359,837 | ||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Funds-0.06% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.71%(e)(f) | 9,056 | 9,056 | ||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(e)(f) | 3,105 | 3,106 | ||||||
|
| |||||||
Total Investments Purchased with Cash Collateral from Securities on Loan | 12,162 | |||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES-86.70% |
| 17,371,999 | ||||||
OTHER ASSETS LESS LIABILITIES-13.30% |
| 2,665,394 | ||||||
|
| |||||||
NET ASSETS-100.00% | $ | 20,037,393 | ||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
38 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG)–(continued)
October 31, 2019
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at October 31, 2019. |
(d) | The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates (excluding affiliated money market funds) for the fiscal year ended October 31, 2019. |
Value October 31, 2018 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value October 31, 2019 | Dividend Income | ||||||||
Invesco Ltd. | $9,987 | $- | $- | $(2,250) | $- | $7,737 | $561 |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2019. |
(f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
Open Futures Contracts(a) | |||||||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
Equity Risk | |||||||||||||||||||||||||
CBOE Volatility Index (VIX) Futures | 16 | November-2019 | $ | 244,400 | $ | (26,089 | ) | $ | (26,089 | ) | |||||||||||||||
CBOE Volatility Index (VIX) Futures | 15 | December-2019 | 250,875 | (3,466) | (3,466 | ) | |||||||||||||||||||
S&P 500 E-Mini Futures | 16 | December-2019 | 2,428,640 | 65,182 | 65,182 | ||||||||||||||||||||
S&P 500 Micro E-Mini Futures | 104 | December-2019 | 1,578,616 | (179) | (179 | ) | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Total Futures Contracts | $ | 35,448 | $ | 35,448 | |||||||||||||||||||||
|
|
|
|
(a) | Futures contracts collateralized by $2,636,112 cash held with Merrill Lynch International, the futures commission merchant. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
39 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)
October 31, 2019
Schedule of Investments(a)
Principal Amount | Value | |||||||
U.S. TreasurySecurities-35.06% |
| |||||||
U.S. TreasuryBills-0.18% | ||||||||
1.89%–2.05%, 12/19/2019(b)(c) | $ | 230,000 | $ | 229,557 | ||||
1.58%–1.63%, 04/09/2020(b)(c) | 89,000 | 88,400 | ||||||
|
| |||||||
317,957 | ||||||||
|
| |||||||
U.S. TreasuryBonds-5.32% | ||||||||
2.88%, 05/15/2049 | 8,151,200 | 9,394,895 | ||||||
|
| |||||||
U.S. TreasuryNotes-29.56% | ||||||||
1.38%, 10/15/2022 | 15,890,100 | 15,826,167 | ||||||
1.50%, 09/30/2024 | 12,000,000 | 11,985,234 | ||||||
1.50%, 10/31/2024 | 4,067,800 | 4,063,907 | ||||||
1.63%, 10/31/2026 | 5,048,900 | 5,055,211 | ||||||
1.63%, 08/15/2029 | 15,423,000 | 15,333,234 | ||||||
|
| |||||||
52,263,753 | ||||||||
|
| |||||||
Total U.S. Treasury Securities | 61,976,605 | |||||||
|
| |||||||
U.S. Dollar Denominated Bonds &Notes-34.55% |
| |||||||
Advertising-0.14% | ||||||||
MDC Partners, Inc., 6.50%, 05/01/2024(d) | 250,000 | 240,313 | ||||||
|
| |||||||
Airlines-3.82% | ||||||||
American Airlines Group, Inc., 5.00%, 06/01/2022(d) | 167,000 | 174,306 | ||||||
American Airlines Pass Through Trust Series2019-1, Class AA, 3.15%, 02/15/2032 | 848,000 | 888,692 | ||||||
Series2019-1, Class B, 3.85%, 02/15/2028 | 571,000 | 580,249 | ||||||
British Airways Pass Through Trust (United Kingdom) | ||||||||
Series2019-1, Class A, 3.35%, 06/15/2029(d) | 471,000 | 482,326 | ||||||
Series2019-1, Class AA, 3.30%, 12/15/2032(d) | 590,000 | 615,011 | ||||||
Delta Air Lines, Inc. | ||||||||
2.90%, 10/28/2024 | 1,427,000 | 1,424,003 | ||||||
3.75%, 10/28/2029 | 1,322,000 | 1,319,845 | ||||||
United Airlines Pass Through Trust Series2019-2, Class AA, 2.70%, 05/01/2032 | 1,112,000 | 1,121,202 | ||||||
Series2019-2, Class B, 3.50%, 05/01/2028 | 157,000 | 157,296 | ||||||
|
| |||||||
6,762,930 | ||||||||
|
| |||||||
Auto Parts &Equipment-0.76% | ||||||||
Ashtead Capital, Inc. (United Kingdom) | 200,000 | 201,250 | ||||||
4.25%, 11/01/2029(d) | 1,135,000 | 1,149,187 | ||||||
|
| |||||||
1,350,437 | ||||||||
|
| |||||||
AutomobileManufacturers-2.20% |
| |||||||
Ford Motor Credit Co. LLC 3.35%, 11/01/2022 | 492,000 | 493,815 | ||||||
5.58%, 03/18/2024 | 200,000 | 213,288 |
Principal Amount | Value | |||||||
Automobile Manufacturers-(continued) |
| |||||||
Hyundai Capital America | ||||||||
2.85%, 11/01/2022(d) | $ | 1,333,000 | $ | 1,343,524 | ||||
4.30%, 02/01/2024(d) | 425,000 | 449,167 | ||||||
3.50%, 11/02/2026(d) | 1,365,000 | 1,382,190 | ||||||
|
| |||||||
3,881,984 | ||||||||
|
| |||||||
Broadcasting-0.44% | ||||||||
Fox Corp., 4.71%, 01/25/2029(d) | 366,000 | 416,740 | ||||||
Sirius XM Radio, Inc., 4.63%, | 339,000 | 355,103 | ||||||
|
| |||||||
771,843 | ||||||||
|
| |||||||
BuildingProducts-0.18% | ||||||||
HP Communities LLC | ||||||||
5.78%, 03/15/2046(d) | 150,000 | 191,607 | ||||||
5.86%, 09/15/2053(d) | 100,000 | 127,268 | ||||||
|
| |||||||
318,875 | ||||||||
|
| |||||||
Cable &Satellite-1.83% | ||||||||
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., 5.05%, 03/30/2029 | 372,000 | 419,854 | ||||||
Comcast Corp. | ||||||||
3.95%, 10/15/2025 | 50,000 | 54,852 | ||||||
4.15%, 10/15/2028 | 243,000 | 274,711 | ||||||
4.60%, 10/15/2038 | 75,000 | 89,267 | ||||||
3.25%, 11/01/2039 | 1,250,000 | 1,270,011 | ||||||
3.45%, 02/01/2050 | 1,000,000 | 1,028,981 | ||||||
4.95%, 10/15/2058 | 76,000 | 98,316 | ||||||
|
| |||||||
3,235,992 | ||||||||
|
| |||||||
Casinos &Gaming-0.25% | ||||||||
MGM China Holdings Ltd. (Macau) | ||||||||
5.38%, 05/15/2024(d) | 218,000 | 228,900 | ||||||
5.88%, 05/15/2026(d) | 200,000 | 212,000 | ||||||
|
| |||||||
440,900 | ||||||||
|
| |||||||
CommodityChemicals-0.14% | ||||||||
Alpek S.A.B. de C.V. (Mexico), 4.25%, 09/18/2029(d) | 247,000 | 252,002 | ||||||
|
| |||||||
ConsumerFinance-0.04% | ||||||||
Credit Acceptance Corp., 6.63%, 03/15/2026(d) | 71,000 | 75,615 | ||||||
|
| |||||||
Copper-0.13% | ||||||||
Freeport-McMoRan, Inc., 5.00%, 09/01/2027 | 234,000 | 239,558 | ||||||
|
| |||||||
Data Processing & OutsourcedServices-0.49% | ||||||||
PayPal Holdings, Inc. | ||||||||
2.40%, 10/01/2024 | 301,000 | 303,377 | ||||||
2.65%, 10/01/2026 | 216,000 | 218,949 | ||||||
2.85%, 10/01/2029 | 336,000 | 338,717 | ||||||
|
| |||||||
861,043 | ||||||||
|
| |||||||
DiversifiedBanks-5.83% | ||||||||
Africa Finance Corp. (Supranational), 4.38%, 04/17/2026(d) | 280,000 | 294,172 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
40 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Diversified Banks-(continued) | ||||||||
Bank of America Corp., 3.19%, 07/23/2030 | $ | 1,000,000 | $ | 1,033,912 | ||||
Citigroup, Inc. | ||||||||
3.48% (3 mo. USD LIBOR + 1.38%), 03/30/2021(e) | 100,000 | 101,535 | ||||||
3.98%, 03/20/2030 | 1,000,000 | 1,090,965 | ||||||
2.98%, 11/05/2030 | 2,278,000 | 2,300,163 | ||||||
Series P, 5.95%(f) | 390,000 | 419,693 | ||||||
Series T, 6.25%(f) | 100,000 | 113,758 | ||||||
Series U, 5.00%(f) | 414,000 | 431,260 | ||||||
Citizens Bank N.A., 2.94% (3 mo. USD LIBOR + 0.81%), 05/26/2022(e) | 250,000 | 251,212 | ||||||
Commonwealth Bank of Australia (Australia), 3.74%, 09/12/2039(d) | 200,000 | 201,043 | ||||||
HSBC Holdings PLC (United Kingdom), 6.25%(f) | 292,000 | 305,213 | ||||||
JPMorgan Chase & Co. | 205,000 | 206,417 | ||||||
3.70%, 05/06/2030 | 1,000,000 | 1,076,600 | ||||||
Series I, 5.41% (3 mo. USD LIBOR + 3.47%)(e)(f) | 59,000 | 59,501 | ||||||
Mizuho Financial Group, Inc. (Japan), 2.92% (3 mo. USD LIBOR + 0.79%), 03/05/2023(e) | 100,000 | 100,192 | ||||||
National Australia Bank Ltd. (Australia), 3.93%, 08/02/2034(d) | 250,000 | 258,904 | ||||||
Royal Bank of Scotland Group PLC (United Kingdom), 3.75%, 11/01/2029 | 315,000 | 317,971 | ||||||
Societe Generale S.A. (France), | 205,000 | 218,258 | ||||||
Standard Chartered PLC (United Kingdom), 3.33% (3 mo. USD LIBOR + 1.20%), 09/10/2022(d)(e) | 200,000 | 201,406 | ||||||
Sumitomo Mitsui Financial Group, Inc. (Japan), 3.04%, 07/16/2029 | 205,000 | 210,484 | ||||||
Wells Fargo & Co., 4.15%, 01/24/2029 | 1,000,000 | 1,111,715 | ||||||
|
| |||||||
10,304,374 | ||||||||
|
| |||||||
Diversified CapitalMarkets-0.32% | ||||||||
Credit Suisse Group AG (Switzerland), 7.50%(d)(f) | 200,000 | 216,938 | ||||||
UBS Group Funding Switzerland AG (Switzerland) | ||||||||
3.57% (3 mo. USD LIBOR + 1.44%), 09/24/2020(d)(e) | 200,000 | 202,317 | ||||||
3.77% (3 mo. USD LIBOR + 1.78%), 04/14/2021(d)(e) | 150,000 | 152,966 | ||||||
|
| |||||||
572,221 | ||||||||
|
| |||||||
DiversifiedChemicals-0.49% | ||||||||
Braskem Netherlands Finance B.V. (Brazil) | ||||||||
4.50%, 01/31/2030(d) | 305,000 | 302,560 | ||||||
5.88%, 01/31/2050(d) | 335,000 | 333,258 | ||||||
Dow Chemical Co. (The), 3.15%, 05/15/2024(d) | 223,000 | 230,506 | ||||||
|
| |||||||
866,324 | ||||||||
|
|
Principal Amount | Value | |||||||
Diversified Metals &Mining-0.38% | ||||||||
BHP Billiton Finance USA Ltd. (Australia), 6.75%, 10/19/2075(d) | $ | 150,000 | $ | 176,438 | ||||
Minera Mexico S.A. de C.V. (Mexico), 4.50%, 01/26/2050(d) | 210,000 | 206,472 | ||||||
Teck Resources Ltd. (Canada), 6.13%, 10/01/2035 | 250,000 | 282,563 | ||||||
|
| |||||||
665,473 | ||||||||
|
| |||||||
DiversifiedREITs-0.36% | ||||||||
Fort Benning Family Communities LLC, | 200,000 | 241,875 | ||||||
STORE Capital Corp., 4.63%, 03/15/2029 | 75,000 | 83,198 | ||||||
Trust F/1401 (Mexico), 4.87%, 01/15/2030(d) | 300,000 | 313,275 | ||||||
|
| |||||||
638,348 | ||||||||
|
| |||||||
ElectricUtilities-0.86% | ||||||||
Drax Finco PLC (United Kingdom), 6.63%, 11/01/2025(d) | 200,000 | 212,750 | ||||||
Empresas Publicas de Medellin E.S.P. (Colombia), 4.25%, 07/18/2029(d) | 200,000 | 209,860 | ||||||
PT Perusahaan Listrik Negara (Indonesia) | ||||||||
3.38%, 02/05/2030(d) | 665,000 | 664,525 | ||||||
4.38%, 02/05/2050(d) | 425,000 | 426,518 | ||||||
|
| |||||||
1,513,653 | ||||||||
|
| |||||||
ElectronicComponents-0.06% | ||||||||
Sensata Technologies, Inc., 4.38%, 02/15/2030(d) | 100,000 | 100,938 | ||||||
|
| |||||||
Health CareREITs-0.28% | ||||||||
MPT Operating Partnership L.P./MPT Finance Corp., 4.63%, 08/01/2029 | 115,000 | 120,177 | ||||||
Senior Housing Properties Trust, 4.75%, 02/15/2028 | 250,000 | 258,493 | ||||||
Welltower, Inc., 3.10%, 01/15/2030 | 123,000 | 124,741 | ||||||
|
| |||||||
503,411 | ||||||||
|
| |||||||
Health CareServices-0.06% | ||||||||
Cigna Corp., 2.89% (3 mo. USD LIBOR + 0.89%), 07/15/2023(e) | 106,000 | 106,444 | ||||||
|
| |||||||
Homebuilding-0.59% | ||||||||
KB Home, 4.80%, 11/15/2029 | 520,000 | 525,525 | ||||||
M.D.C. Holdings, Inc., 6.00%, 01/15/2043 | 500,000 | 523,125 | ||||||
|
| |||||||
1,048,650 | ||||||||
|
| |||||||
Hotel & ResortREITs-0.11% | ||||||||
Service Properties Trust, 5.25%, 02/15/2026 | 180,000 | 189,107 | ||||||
|
| |||||||
Hotels, Resorts & CruiseLines-0.56% |
| |||||||
ESH Hospitality, Inc., 4.63%, 10/01/2027(d) | 500,000 | 502,550 | ||||||
Marriott Ownership Resorts, Inc., 4.75%, 01/15/2028(d) | 474,000 | 485,992 | ||||||
|
| |||||||
988,542 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
41 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
IndustrialConglomerates-0.41% | ||||||||
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/2035 | $ | 273,000 | $ | 288,621 | ||||
General Electric Co., 5.55%, 01/05/2026 | 387,000 | 440,246 | ||||||
|
| |||||||
728,867 | ||||||||
|
| |||||||
IndustrialREITs-0.18% | ||||||||
Lexington Realty Trust, 4.40%, 06/15/2024 | 300,000 | 313,171 | ||||||
|
| |||||||
Integrated Oil &Gas-0.33% | ||||||||
Saudi Arabian Oil Co. (Saudi Arabia), 2.88%, 04/16/2024(d) | 573,000 | 582,139 | ||||||
|
| |||||||
Integrated TelecommunicationServices-0.82% |
| |||||||
Altice France S.A. (France), 7.38%, 05/01/2026(d) | 200,000 | 214,669 | ||||||
AT&T, Inc. | ||||||||
3.31% (3 mo. USD LIBOR + 1.18%), 06/12/2024(e) | 102,000 | 103,841 | ||||||
5.15%, 02/15/2050 | 500,000 | 586,459 | ||||||
Verizon Communications, Inc., 3.88%, 02/08/2029 | 500,000 | 553,425 | ||||||
|
| |||||||
1,458,394 | ||||||||
|
| |||||||
Interactive Media &Services-0.95% |
| |||||||
Cable Onda S.A. (Panama), 4.50%, 01/30/2030(d) | 1,720,000 | 873,132 | ||||||
Diamond Sports Group LLC/Diamond Sports Finance Co. | ||||||||
5.38%, 08/15/2026(d) | 382,000 | 400,145 | ||||||
6.63%, 08/15/2027(d) | 40,000 | 41,300 | ||||||
Match Group, Inc., 5.63%, | 339,000 | 364,425 | ||||||
|
| |||||||
1,679,002 | ||||||||
|
| |||||||
Internet Services &Infrastructure-0.13% |
| |||||||
Network i2i Ltd. (India), 5.65%(d)(f) | 240,000 | 226,200 | ||||||
|
| |||||||
Investment Banking &Brokerage-0.62% |
| |||||||
Goldman Sachs Group, Inc. (The), 4.22%, 05/01/2029 | 1,000,000 | 1,093,719 | ||||||
|
| |||||||
LeisureFacilities-0.24% | ||||||||
Speedway Motorsports LLC/Speedway Funding II, Inc., 4.88%, | 420,000 | 420,126 | ||||||
|
| |||||||
Life & HealthInsurance-0.62% | ||||||||
American Equity Investment Life Holding Co., 5.00%, 06/15/2027 | 350,000 | 371,213 | ||||||
Brighthouse Financial, Inc., 4.70%, 06/22/2047 | 243,000 | 216,619 | ||||||
MetLife, Inc., 9.25%, 04/08/2038(d) | 350,000 | 509,925 | ||||||
|
| |||||||
1,097,757 | ||||||||
|
| |||||||
Movies &Entertainment-0.04% | ||||||||
Netflix, Inc., 5.38%, 11/15/2029(d) | 68,000 | 71,740 | ||||||
|
| |||||||
OfficeREITs-0.13% | ||||||||
Alexandria Real Estate Equities, Inc. | ||||||||
3.38%, 08/15/2031 | 83,000 | 87,369 | ||||||
4.00%, 02/01/2050 | 127,000 | 139,940 | ||||||
|
| |||||||
227,309 | ||||||||
|
|
Principal Amount | Value | |||||||
Oil & GasDrilling-0.79% | ||||||||
Plains All American Pipeline, L.P. | ||||||||
3.55%, 12/15/2029 | $ | 1,401,000 | $ | 1,342,297 | ||||
Series B, 6.13%(f) | 54,000 | 50,220 | ||||||
|
| |||||||
1,392,517 | ||||||||
|
| |||||||
Oil & Gas Exploration &Production-0.12% |
| |||||||
Continental Resources, Inc., 5.00%, 09/15/2022 | 204,000 | 205,693 | ||||||
|
| |||||||
Oil & Gas Refining &Marketing-0.08% |
| |||||||
Parkland Fuel Corp. (Canada), 5.88%, 07/15/2027(d) | 133,000 | 141,089 | ||||||
|
| |||||||
Oil & Gas Storage &Transportation-0.78% |
| |||||||
Buckeye Partners, L.P., 4.35%, 10/15/2024 | 307,000 | 307,673 | ||||||
Energy Transfer Operating, L.P. | ||||||||
6.00%, 06/15/2048 | 71,000 | 82,327 | ||||||
Series 20Y, 5.80%, 06/15/2038 | 71,000 | 81,244 | ||||||
MPLX L.P. | ||||||||
3.00% (3 mo. USD LIBOR + 0.90%), 09/09/2021(e) | 524,000 | 526,172 | ||||||
3.20% (3 mo. USD LIBOR + 1.10%), 09/09/2022(e) | 379,000 | 380,427 | ||||||
|
| |||||||
1,377,843 | ||||||||
|
| |||||||
Other Diversified FinancialServices-0.62% |
| |||||||
AMC East Communities LLC, 6.01%, 01/15/2053(d) | 191,731 | 235,689 | ||||||
Ares Finance Co. LLC, 4.00%, 10/08/2024(d) | 150,000 | 150,830 | ||||||
Aviation Capital Group LLC | ||||||||
2.61% (3 mo. USD LIBOR + 0.67%), 07/30/2021(d)(e) | 69,000 | 68,836 | ||||||
4.13%, 08/01/2025(d) | 97,000 | 101,595 | ||||||
Carlyle Finance LLC, 5.65%, 09/15/2048(d) | 129,000 | 152,258 | ||||||
Fort Knox Military Housing Privatization Project, 2.25% (1 mo. USD LIBOR + 0.34%), 02/15/2052(d)(e) | 235,653 | 151,158 | ||||||
Mid-Atlantic Military Family Communities LLC, 5.30%, 08/01/2050(d) | 229,351 | 238,973 | ||||||
|
| |||||||
1,099,339 | ||||||||
|
| |||||||
Packaged Foods &Meats-0.96% | ||||||||
BRF S.A. (Brazil), 4.88%, 01/24/2030(d). | 405,000 | 404,554 | ||||||
Hershey Co. (The) | ||||||||
2.45%, 11/15/2029 | 467,000 | 473,096 | ||||||
3.13%, 11/15/2049 | 682,000 | 697,750 | ||||||
Mars, Inc., 2.70%, 04/01/2025(d) | 121,000 | 124,895 | ||||||
|
| |||||||
1,700,295 | ||||||||
|
| |||||||
PaperProducts-0.17% | ||||||||
Celulosa Arauco y Constitucion S.A. (Chile), 5.15%, 01/29/2050(d) | 210,000 | 207,889 | ||||||
Mercer International, Inc. (Germany), 7.38%, 01/15/2025(d) | 85,000 | 88,400 | ||||||
|
| |||||||
296,289 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
42 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Pharmaceuticals-0.33% | ||||||||
Bristol-Myers Squibb Co. | ||||||||
2.90%, 07/26/2024(d) | $ | 355,000 | $ | 368,131 | ||||
3.40%, 07/26/2029(d) | 205,000 | 220,684 | ||||||
|
| |||||||
588,815 | ||||||||
|
| |||||||
Property & CasualtyInsurance-0.18% |
| |||||||
First American Financial Corp., 4.30%, 02/01/2023 | 300,000 | 311,817 | ||||||
|
| |||||||
Railroads-0.39% | ||||||||
Norfolk Southern Corp., 2.55%, 11/01/2029 | 280,000 | 281,491 | ||||||
Union Pacific Corp., 3.95%, 08/15/2059 . | 390,000 | 412,707 | ||||||
|
| |||||||
694,198 | ||||||||
|
| |||||||
Real EstateDevelopment-0.46% | ||||||||
Atlantic Marine Corps Communities LLC, 5.34%, 12/01/2050(d) | 95,292 | 116,313 | ||||||
Pacific Beacon LLC | ||||||||
5.38%, 07/15/2026(d) | 94,856 | 103,490 | ||||||
5.51%, 07/15/2036(d) | 500,000 | 602,157 | ||||||
|
| |||||||
821,960 | ||||||||
|
| |||||||
RegionalBanks-0.50% | ||||||||
Fifth Third Bancorp, 2.38%, 01/28/2025 | 515,000 | 517,793 | ||||||
Zions Bancorp. N.A., 3.25%, 10/29/2029 | 365,000 | 364,768 | ||||||
|
| |||||||
882,561 | ||||||||
|
| |||||||
Reinsurance-0.39% | ||||||||
Global Atlantic Fin Co., 4.40%, 10/15/2029(d) | 680,000 | 683,616 | ||||||
|
| |||||||
ResidentialREITs-0.24% | ||||||||
Spirit Realty L.P. | ||||||||
4.00%, 07/15/2029 | 75,000 | 79,371 | ||||||
3.40%, 01/15/2030 | 335,000 | 337,674 | ||||||
|
| |||||||
417,045 | ||||||||
|
| |||||||
SemiconductorEquipment-0.06% | ||||||||
Lam Research Corp. | ||||||||
4.00%, 03/15/2029 | 45,000 | 49,819 | ||||||
4.88%, 03/15/2049 | 40,000 | 49,347 | ||||||
|
| |||||||
99,166 | ||||||||
|
| |||||||
Semiconductors-0.22% | ||||||||
Micron Technology, Inc. | ||||||||
4.98%, 02/06/2026 | 60,000 | 65,261 | ||||||
4.19%, 02/15/2027 | 275,000 | 287,530 | ||||||
5.33%, 02/06/2029 | 35,000 | 38,789 | ||||||
|
| |||||||
391,580 | ||||||||
|
| |||||||
SovereignDebt-0.37% | ||||||||
Abu Dhabi Government International Bond (United Arab Emirates) | ||||||||
2.13%, 09/30/2024(d) | 250,000 | 249,010 | ||||||
2.50%, 09/30/2029(d) | 200,000 | 198,875 | ||||||
Qatar Government International Bond (Qatar), 3.38%, 03/14/2024(d) | 200,000 | 209,375 | ||||||
|
| |||||||
657,260 | ||||||||
|
|
Principal Amount | Value | |||||||
SpecializedFinance-0.06% | ||||||||
Park Aerospace Holdings Ltd. (Ireland), 5.25%, 08/15/2022(d) | $ | 100,000 | $ | 106,745 | ||||
|
| |||||||
SpecializedREITs-0.32% | ||||||||
Iron Mountain, Inc., 4.88%, 09/15/2029(d) | 546,000 | 560,332 | ||||||
|
| |||||||
Steel-1.27% | ||||||||
Steel Dynamics, Inc., 5.50%, 10/01/2024 | 2,181,000 | 2,252,493 | ||||||
|
| |||||||
Technology Hardware, Storage &Peripherals-0.22% |
| |||||||
Apple, Inc. | ||||||||
2.05%, 09/11/2026 | 214,000 | 213,389 | ||||||
2.20%, 09/11/2029 | 107,000 | 105,378 | ||||||
Dell International LLC/EMC Corp., 4.90%, 10/01/2026(d) | 70,000 | 76,008 | ||||||
|
| |||||||
394,775 | ||||||||
|
| |||||||
Tobacco-0.37% | ||||||||
BAT Capital Corp. (United Kingdom), 2.79%, 09/06/2024 | 649,000 | 646,415 | ||||||
|
| |||||||
Trading Companies &Distributors-0.41% |
| |||||||
Aircastle Ltd., 4.40%, 09/25/2023 | 500,000 | 525,974 | ||||||
BOC Aviation Ltd. (Singapore), 3.24% (3 mo. USD LIBOR + 1.13%), | 200,000 | 201,419 | ||||||
|
| |||||||
727,393 | ||||||||
|
| |||||||
Trucking-0.15% | ||||||||
Avolon Holdings Funding Ltd. (Ireland), 4.38%, 05/01/2026(d) | 50,000 | 52,960 | ||||||
SMBC Aviation Capital Finance DAC (Ireland), 4.13%, 07/15/2023(d) | 204,000 | 215,355 | ||||||
|
| |||||||
268,315 | ||||||||
|
| |||||||
Wireless TelecommunicationServices-0.30% |
| |||||||
Rogers Communications, Inc. (Canada), 4.35%, 05/01/2049 | 36,000 | 40,595 | ||||||
VEON Holdings B.V. (Netherlands), 4.00%, 04/09/2025(d) | 485,000 | 498,852 | ||||||
|
| |||||||
539,447 | ||||||||
|
| |||||||
Total U.S. Dollar Denominated Bonds & Notes |
| 61,084,399 | ||||||
|
| |||||||
U.S. Government Sponsored Agency Mortgage-BackedSecurities-20.44% |
| |||||||
Collateralized MortgageObligations-5.50% |
| |||||||
Fannie Mae Connecticut Avenue Securities | ||||||||
Series2016-C07, Class 2M2, 6.17% (1 mo. USD LIBOR + 4.35%), 05/25/2029(e) | 123,447 | 129,730 | ||||||
Series2018-C05, Class 1M2, 4.17% (1 mo. USD LIBOR + 2.35%), 01/25/2031(e) | 137,000 | 138,514 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
43 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Collateralized Mortgage Obligations-(continued) |
| |||||||
Fannie Mae Connecticut Avenue | ||||||||
Securities | ||||||||
Series2019-R03, Class 1M2, 3.97% (1 mo. USD LIBOR + 2.15%), 09/25/2031(d)(e) | $ | 278,000 | $ | 279,241 | ||||
Series2019-R06, Class 2M2, 3.92% (1 mo. USD LIBOR + 2.10%), 09/25/2039(d)(e) | 284,000 | 284,835 | ||||||
Fannie Mae Multifamily Connecticut Avenue Securities, Series2019-01, Class M7, 3.50% (1 mo. USD LIBOR + 1.70%), 10/15/2049(d)(e) | 1,983,000 | 2,006,616 | ||||||
Freddie Mac Military Housing Bonds Resecuritization Trust Ctfs., Series2015-R1, Class B1, 3.48%, 11/25/2055(d)(g) | 958,280 | 1,113,703 | ||||||
Freddie Mac Multifamily Structured Pass Through Ctfs. | ||||||||
Series 2013-K026, Class X1, IO, 0.98%, 11/25/2022(g) | 5,074,948 | 126,913 | ||||||
Series 2013-K035, Class X1, IO, 0.38%, 08/25/2023(g) | 8,180,248 | 105,506 | ||||||
Series 2014-K036, Class X1, IO, 0.89%, 10/25/2023(g) | 5,934,100 | 154,280 | ||||||
Series 2014-K037, Class X1, IO, 0.98%, 01/25/2024(g) | 6,319,748 | 219,260 | ||||||
Series 2015-K042, Class X1, IO, 1.05%, 12/25/2024(g) | 4,376,425 | 200,903 | ||||||
Series 2017-K066, Class AM, 3.20%, 06/25/2027 | 250,000 | 268,295 | ||||||
Series 2017-KGX1, Class AFX, 3.00%, 10/25/2027 | 1,000,000 | 1,056,127 | ||||||
Series 2018-K074, Class AM, 3.60%, 02/25/2028 | 1,000,000 | 1,101,504 | ||||||
Series 2018-K154, Class A3, 3.46%, 11/25/2032 | 1,000,000 | 1,104,891 | ||||||
Series K038, Class X1, IO, 1.15%, 03/25/2024(g) | 4,147,468 | 173,374 | ||||||
Seasoned Credit Risk Transfer Trust | ||||||||
Series2017-3, Class HT, 3.25%, 07/25/2056(h) | 422,515 | 436,546 | ||||||
Series2017-4, Class HT, 3.00%, 06/25/2057(h) | 794,965 | 821,613 | ||||||
|
| |||||||
9,721,851 | ||||||||
|
| |||||||
Federal Home Loan Mortgage Corp.(FHLMC)-1.75% |
| |||||||
3.55%, 10/01/2033 | 488,467 | 533,052 | ||||||
3.00%, 10/01/2034 | 1,159,437 | 1,188,272 | ||||||
4.00%, 11/01/2048 to 07/01/2049 | 1,323,858 | 1,380,668 | ||||||
|
| |||||||
3,101,992 | ||||||||
|
| |||||||
Federal National Mortgage Association(FNMA)-12.48% |
| |||||||
2.86%, 09/01/2029 | 500,000 | 527,295 | ||||||
2.99%, 09/01/2029 | 500,000 | 528,799 | ||||||
2.82%, 10/01/2029 | 500,000 | 525,622 | ||||||
3.05%, 10/01/2029 | 500,000 | 533,430 | ||||||
2.90%, 11/01/2029 | 500,000 | 524,924 | ||||||
3.08%, 10/01/2032 | 750,000 | 800,871 | ||||||
3.24%, 11/01/2032 | 484,183 | 522,073 | ||||||
3.31%, 01/01/2033 | 1,000,000 | 1,092,657 |
Principal Amount | Value | |||||||
Federal National Mortgage Association (FNMA)-(continued) |
| |||||||
2.50%, 10/01/2034 | $ | 1,633,017 | $ | 1,651,172 | ||||
3.50%, 05/01/2047 to 06/01/2047 | 4,569,416 | 4,788,511 | ||||||
4.00%, 11/01/2047 | 484,441 | 508,705 | ||||||
3.00%, 09/01/2049 to 10/01/2049 | 6,778,258 | 6,951,163 | ||||||
TBA, 2.50%, 11/01/2034(i) | 822,000 | 830,894 | ||||||
TBA, 3.00%, 11/01/2034 to 11/01/2049(i) | 2,235,000 | 2,279,553 | ||||||
|
| |||||||
22,065,669 | ||||||||
|
| |||||||
Government National Mortgage Association(GNMA)-0.71% |
| |||||||
TBA, 3.00%, 11/01/2049(i) | 865,000 | 890,476 | ||||||
TBA, 4.00%, 11/01/2049(i) | 350,000 | 363,973 | ||||||
|
| |||||||
1,254,449 | ||||||||
|
| |||||||
Total U.S. Government Sponsored Agency Mortgage- Backed Securities (Cost $35,208,670) | 36,143,961 | |||||||
|
| |||||||
Asset-BackedSecurities-7.47% | ||||||||
Anchorage Credit Funding 4 Ltd. (Cayman Islands), Series2016-4A, Class A, 3.50%, 02/15/2035(d) | 500,000 | 506,717 | ||||||
Bear Stearns Asset Backed Securities I Trust, Series2006-HE9, Class 2A, 1.96% (1 mo. USD LIBOR + 0.14%), | 338,063 | 331,862 | ||||||
Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, 07/25/2049(d)(g) | 579,331 | 588,858 | ||||||
Citigroup Mortgage Loan Trust, Series 2019-IMC1, Class A1, 2.72%, 07/25/2049(d)(g) | 321,284 | 323,054 | ||||||
Domino’s Pizza Master Issuer LLC, Series2017-1A, Class A2I, 3.53% (3 mo. USD LIBOR + 1.25%), 07/25/2047(d)(e) | 588,000 | 588,441 | ||||||
DT Auto Owner Trust Series2019-3A, Class C, 2.74%, 04/15/2025(d) | 150,000 | 151,658 | ||||||
Series2019-3A, Class D, 2.96%, 04/15/2025(d) | 214,000 | 215,724 | ||||||
FREMF Mortgage Trust, Series 2013- K29, Class X2A, IO, 0.13%, 05/25/2046(d) | 28,736,257 | 98,175 | ||||||
GCAT Trust, Series 2019-NQM2, Class A1, 2.86%, 09/25/2059(d)(h) | 978,522 | 983,835 | ||||||
Golub Capital Partners CLO 16 Ltd. (Cayman Islands), Series2013-16A, Class A2R, 3.79% (3 mo. USD LIBOR + 1.85%), 07/25/2029(d)(e) | 300,000 | 298,981 | ||||||
Golub Capital Partners CLO 41 B Ltd. (Cayman Islands), Series2019-41A, Class A, 3.34% (3 mo. USD LIBOR + 1.37%), 04/20/2029(d)(e) | 427,000 | 428,135 | ||||||
GS Mortgage Securities Corp. Trust, Series 2017-STAY, Class C, 3.26% (1 mo. USD LIBOR + 1.35%), 07/15/2032(d)(e) | 500,000 | 500,002 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
44 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Hertz Vehicle Financing II L.P., Series2019-2A, Class A, 3.42%, 05/25/2025(d) | $ | 300,000 | $ | 311,360 | ||||
Horizon Aircraft Finance III Ltd. (Cayman Islands), Series2019-2, Class A, 3.43%, 11/15/2039(d) | 400,000 | 402,860 | ||||||
JOL Air Ltd. (Cayman Islands), Series2019-1, Class A, 3.97%, | 255,373 | 258,070 | ||||||
MACH 1 Cayman Ltd. (Cayman Islands), Series2019-1, Class B, 4.34%, 10/15/2039(d) | 250,000 | 249,263 | ||||||
New Residential Mortgage Loan Trust, Series 2019-NQM4, Class A1, 2.49%, 09/25/2059(d)(g) | 992,202 | 993,959 | ||||||
Newstar Commercial Loan Funding LLC, Series2016-1A, Class B, 5.88% (3 mo. USD LIBOR + 3.75%), 02/25/2028(d)(e) | 250,000 | 250,187 | ||||||
One Bryant Park Trust, Series2019-OBP, Class A, 2.52%, 09/15/2054(d) | 457,000 | 457,990 | ||||||
PPM CLO 3 Ltd. (Cayman Islands) | ||||||||
Series2019-3A, Class A, 3.40% (3 mo. USD LIBOR + 1.40%), 07/17/2030(d)(e) | 250,000 | 249,283 | ||||||
Series2019-3A, Class B, 3.95% (3 mo. USD LIBOR + 1.95%), 07/17/2030(d)(e) | 250,000 | 249,642 | ||||||
Residential Mortgage Loan Trust, Series2019-3, Class A1, 2.63%, 09/25/2059(d)(g) | 191,213 | 191,425 | ||||||
Store Master FundingI-VII, Series 2016-1A, Class A2, 4.32%, 10/20/2046(d) | 477,310 | 504,139 | ||||||
Taco Bell Funding LLC, Series2016-1A, Class A23, 4.97%, 05/25/2046(d) | 146,625 | 156,734 | ||||||
Wells Fargo Commercial Mortgage Trust, Series 2016-NXS5, Class XA, IO, 1.51%, | 1,921,463 | 119,232 | ||||||
Wendy’s Funding LLC | ||||||||
Series2015-1A, Class A23, 4.50%, 06/15/2045(d) | 2,208,000 | 2,283,375 | ||||||
Series2019-1A, Class A2II, 4.08%, 06/15/2049(d) | 498,750 | 519,278 | ||||||
Woodmont Trust | ||||||||
Series2017-2A, Class A, 3.80% (3 mo. USD LIBOR + 1.80%), 07/18/2028(d)(e) | 500,000 | 499,633 | ||||||
Series2017-3A, Class A1, 3.73% (3 mo. USD LIBOR + 1.73%), 10/18/2029(d)(e) | 500,000 | 499,285 | ||||||
|
| |||||||
Total Asset-Backed Securities | 13,211,157 | |||||||
|
| |||||||
U.S. Government Sponsored AgencySecurities-1.69% |
| |||||||
Fannie Mae STRIPS | ||||||||
0.00%, 05/15/2029(j) | 450,000 | 367,557 | ||||||
0.00%, 01/15/2030(j) | 1,300,000 | 1,042,320 | ||||||
0.00%, 05/15/2030(j) | 850,000 | 676,952 |
Principal Amount | Value | |||||||
Federal Home Loan Mortgage Corp. | ||||||||
0.00%, 12/14/2029(j) | $ | 150,000 | $ | 120,733 | ||||
0.00%, 09/15/2030(j) | 350,000 | 275,243 | ||||||
Tennessee Valley Authority | ||||||||
5.38%, 04/01/2056 | 100,000 | 159,959 | ||||||
4.25%, 09/15/2065 | 250,000 | 344,452 | ||||||
|
| |||||||
Total U.S. Government Sponsored Agency Securities |
| 2,987,216 | ||||||
|
| |||||||
Agency Credit Risk TransferNotes-0.40% |
| |||||||
Freddie Mac | ||||||||
Series 2016-DNA4, Class M3, STACR®, 5.62% (1 mo. USD LIBOR + 3.80%), 03/25/2029(e)(k) | 250,000 | 265,887 | ||||||
Series 2016-HQA4, Class M3, STACR®, 5.72% (1 mo. USD LIBOR + 3.90%), 04/25/2029(e)(k) | 251,000 | 267,772 | ||||||
Series 2019-HQA2, Class M1, STACR®, 2.52% (1 mo. USD LIBOR + 0.70%), 04/25/2049(d)(e)(k) | 169,694 | 169,742 | ||||||
|
| |||||||
Total Agency Credit Risk Transfer Notes | 703,401 | |||||||
|
| |||||||
MunicipalObligations-0.37% |
| |||||||
Illinois (State of), Series 2010 1, GO Bonds,(INS-AGM), 6.63%, 02/01/2035(l) | 200,000 | 251,170 | ||||||
Los Angeles (City of), CA Department of Water & Power System Revenue, Series 2010, RB, 6.57%, 07/01/2045 . | 255,000 | 399,093 | ||||||
|
| |||||||
Total Municipal Obligations | 650,263 | |||||||
|
| |||||||
Non-U.S. Dollar Denominated Bonds &Notes-0.31% |
| |||||||
ElectricUtilities-0.25% | ||||||||
PT Perusahaan Listrik Negara (Indonesia), 1.88%, | EUR 390,000 | 433,426 | ||||||
|
| |||||||
Movies &Entertainment-0.06% | ||||||||
Netflix, Inc., 3.88%, 11/15/2029(d)(m) | EUR 100,000 | 114,474 | ||||||
|
| |||||||
TotalNon-U.S. Dollar Denominated Bonds & Notes |
| 547,900 | ||||||
|
| |||||||
Shares | ||||||||
PreferredStocks-0.23% |
| |||||||
DiversifiedBanks-0.23% | ||||||||
Wells Fargo & Co., Class A, Series L, Conv. Pfd., 7.50% | 266 | 401,527 | ||||||
|
| |||||||
Purchased CallOptions-0.03% (Cost $43,385)(n) |
| 45,300 | ||||||
|
| |||||||
TOTAL INVESTMENTS INSECURITIES-100.55% |
| 177,751,729 | ||||||
OTHER ASSETS LESS LIABILITIES-(0.55)% |
| (968,944 | ) | |||||
|
| |||||||
NETASSETS-100.00%. | $ | 176,782,785 | ||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
45 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Investment Abbreviations: | ||
AGM | -Assured Guaranty Municipal Corp. | |
CLO | -Collateralized Loan Obligation | |
Conv. | -Convertible | |
Ctfs. | -Certificates | |
EUR | -Euro | |
GO | -General Obligation | |
IO | -Interest Only | |
LIBOR | -London Interbank Offered Rate | |
Pfd. | -Preferred | |
RB | -Revenue Bonds | |
REIT | -Real Estate Investment Trust | |
STACR® | -Structured Agency Credit Risk | |
STRIPS | -Separately Traded Registered Interest and Principal Security | |
TBA | -To Be Announced | |
USD | -U.S. Dollar |
Notes to Schedule of Investments
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 2P. |
(c) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2019 was $41,445,419, which represented 23.44% of the Fund’s Net Assets. |
(e) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2019. |
(f) | Perpetual bond with no specified maturity date. |
(g) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2019. |
(h) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(i) | Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. |
(j) | Denotes a zero coupon security issued at a substantial discount from its value at maturity. |
(k) | Principal payments are determined by the delinquency and principal payment experience on the STACR® reference pool. Freddie Mac transfers credit risk from the mortgages in the reference pool to credit investors who invest in the STACR® debt notes. |
(l) | Principal and/or interest payments are secured by the bond insurance company listed. |
(m) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(n) | The table below details options purchased. |
Open Exchange-Traded Index Options Purchased | ||||||||||||||||||||||||
Description | Type of Contract | Expiration Date | Number of Contracts | Exercise Price | Notional Value* | Value | ||||||||||||||||||
Equity Risk | ||||||||||||||||||||||||
S&P 500 Index | Call | 12/18/2020 | 2 | $ 3,000 | $ 600,000 | $ 45,300 |
* Notional Value is calculated by multiplying the Number of Contracts by the Exercise Price by the multiplier.
Open Futures Contracts | ||||||||||||||||||||||||||||
Long Futures Contracts | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||
U.S. Treasury 2 Year Notes | 110 | December-2019 | $ | 23,716,172 | $ | (11,248 | ) | $ | (11,248 | ) | ||||||||||||||||||
U.S. Treasury 10 Year Notes | 41 | December-2019 | 5,342,172 | (13,245) | (13,245 | ) | ||||||||||||||||||||||
U.S. Treasury Ultra Bonds | 24 | December-2019 | 4,554,000 | 71,759 | 71,759 | |||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Subtotal-Long Futures Contracts | 47,266 | 47,266 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Short Futures Contracts | ||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||
U.S. Treasury 5 Year Notes | 2 | December-2019 | (238,406 | ) | 27 | 27 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
46 | ||||
|
| |||
Invesco Total Return Bond ETF (GTO)–(continued)
October 31, 2019
Open Futures Contracts–(continued) | ||||||||||||||||||||||||||||||||
Short Futures Contracts–(continued) | Number of Contracts | Expiration Month | Notional Value | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||||
U.S. Treasury 10 Year Ultra Notes | 238 | December-2019 | $ | (33,822,031 | ) | $ 54,878 | $ 54,878 | |||||||||||||||||||||||||
U.S. Treasury Long Bonds | 1 | December-2019 | (161,375 | ) | 4,904 | 4,904 | ||||||||||||||||||||||||||
Subtotal–Short Futures Contracts | 59,809 | 59,809 | ||||||||||||||||||||||||||||||
Total Futures Contracts | $107,075 | $ 107,075 |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||||||||||
Contract to | Unrealized | |||||||||||||||||||||||||||||||
Settlement Date | Counterparty | Deliver | Receive | Appreciation | ||||||||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||||||||||
11/29/2019 | Goldman Sachs International | EUR 350,000 | USD 391,341 | $133 |
Abbreviations:
EUR -Euro
USD-U.S. Dollar
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
47 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)
October 31, 2019
Schedule of Investments(a)
Principal Amount | Value | ||||||||||||||
U.S. Dollar Denominated Bonds & Notes-53.65% |
| ||||||||||||||
Advertising-0.28% | |||||||||||||||
Interpublic Group of Cos., Inc. (The), 3.50%, 10/01/2020 | $ | 2,000,000 | $ | 2,026,322 | |||||||||||
Omnicom Group, Inc./Omnicom Capital, Inc., 4.45%, 08/15/2020 | 5,253,000 | 5,351,830 | |||||||||||||
|
| ||||||||||||||
7,378,152 | |||||||||||||||
|
| ||||||||||||||
Aerospace &Defense-0.96% |
| ||||||||||||||
General Dynamics Corp., 2.88%, | 10,000,000 | 10,051,109 | |||||||||||||
United Technologies Corp. | |||||||||||||||
1.50%, 11/01/2019 | 3,575,000 | 3,575,000 | |||||||||||||
2.82% (3 mo. USD LIBOR + 0.65%), 08/16/2021(b) | 6,772,000 | 6,773,341 | |||||||||||||
3.35%, 08/16/2021 | 4,631,000 | 4,753,765 | |||||||||||||
|
| ||||||||||||||
25,153,215 | |||||||||||||||
|
| ||||||||||||||
Agricultural & FarmMachinery-0.37% |
| ||||||||||||||
John Deere Capital Corp., 2.50% (3 mo. USD LIBOR + 0.40%), 06/07/2021(b) | 9,639,000 | 9,674,390 | |||||||||||||
|
| ||||||||||||||
Asset Management & CustodyBanks-0.92% |
| ||||||||||||||
Bank of New York Mellon Corp. (The) | |||||||||||||||
2.60%, 08/17/2020 | 9,000,000 | 9,050,600 | |||||||||||||
2.43% (3 mo. USD LIBOR + 0.30%), 12/04/2020(b) | 15,000,000 | 15,006,156 | |||||||||||||
|
| ||||||||||||||
24,056,756 | |||||||||||||||
|
| ||||||||||||||
AutomobileManufacturers-2.58% |
| ||||||||||||||
American Honda Finance Corp. |
| ||||||||||||||
2.50% (3 mo. USD LIBOR + 0.47%), 01/08/2021(b) | 10,666,000 | 10,702,714 | |||||||||||||
2.49% (3 mo. USD LIBOR + 0.35%), 06/11/2021(b) | 5,625,000 | 5,639,740 | |||||||||||||
General Motors Co., 3.01% (3 mo. USD LIBOR + 0.80%), 08/07/2020(b) | 6,552,000 | 6,562,570 | |||||||||||||
Hyundai Capital America, 2.97% (3 mo. USD LIBOR + 0.94%), 07/08/2021(b)(c) | 10,000,000 | 10,020,627 | |||||||||||||
Nissan Motor Acceptance Corp., 2.25%, 01/13/2020(c) | 6,050,000 | 6,051,022 | |||||||||||||
Toyota Motor Credit Corp. | |||||||||||||||
2.60%, 01/11/2022 | 6,000,000 | 6,104,851 | |||||||||||||
2.52% (3 mo. USD LIBOR + 0.40%), 05/17/2022(b) | 12,260,000 | 12,288,946 | |||||||||||||
Volkswagen Group of America Finance, LLC (Germany) | |||||||||||||||
2.95% (3 mo. USD LIBOR + 0.77%), 11/13/2020(b)(c) | 6,775,000 | 6,803,950 | |||||||||||||
2.50%, 09/24/2021(c) | 3,500,000 | 3,525,152 | |||||||||||||
|
| ||||||||||||||
67,699,572 | |||||||||||||||
|
|
Principal Amount | Value | ||||||||||||||
Biotechnology-1.08% |
| ||||||||||||||
AbbVie, Inc., 2.50%, 05/14/2020 | $ | 16,183,000 | $ | 16,229,313 | |||||||||||
Shire Acquisitions Investments Ireland DAC, 2.40%, 09/23/2021 | 12,000,000 | 12,078,104 | |||||||||||||
|
| ||||||||||||||
28,307,417 | |||||||||||||||
|
| ||||||||||||||
Cable &Satellite-0.92% |
| ||||||||||||||
Comcast Corp., 2.54% (3 mo. USD LIBOR + 0.44%), 10/01/2021(b) | 20,000,000 | 20,112,431 | |||||||||||||
Time Warner Cable LLC, 5.00%, 02/01/2020 | 4,000,000 | 4,026,965 | |||||||||||||
|
| ||||||||||||||
24,139,396 | |||||||||||||||
|
| ||||||||||||||
ConsumerFinance-1.63% |
| ||||||||||||||
American Express Co. | |||||||||||||||
2.65% (3 mo. USD LIBOR + 0.53%), 05/17/2021(b) | 5,000,000 | 5,014,658 | |||||||||||||
2.49% (3 mo. USD LIBOR + 0.60%), 11/05/2021(b) | 12,000,000 | 12,066,868 | |||||||||||||
2.75%, 05/20/2022 | 9,134,000 | 9,308,942 | |||||||||||||
Capital One Financial Corp. | |||||||||||||||
2.94% (3 mo. USD LIBOR + 0.76%), 05/12/2020(b) | 2,250,000 | 2,256,262 | |||||||||||||
2.39% (3 mo. USD LIBOR + 0.45%), 10/30/2020(b) | 4,100,000 | 4,107,965 | |||||||||||||
3.05% (3 mo. USD LIBOR + 0.95%), 03/09/2022(b) | 10,000,000 | 10,083,693 | |||||||||||||
|
| ||||||||||||||
42,838,388 | |||||||||||||||
|
| ||||||||||||||
DiversifiedBanks-12.82% |
| ||||||||||||||
ABN AMRO Bank N.V. (Netherlands), 2.70% (3 mo. USD LIBOR + 0.57%), 08/27/2021(b)(c) | 4,834,000 | 4,854,965 | |||||||||||||
ANZ New Zealand (Int’l) Ltd. (New Zealand), 2.85%, 08/06/2020(c) | 10,000,000 | 10,069,668 | |||||||||||||
Australia & New Zealand Banking Group Ltd. (Australia), 2.58% (3 mo. USD LIBOR + 0.46%), 05/17/2021(b)(c) | 4,737,000 | 4,756,310 | |||||||||||||
Bank of America Corp. | |||||||||||||||
2.63% (3 mo. USD LIBOR + 0.66%), 07/21/2021(b) | 2,250,000 | 2,257,058 | |||||||||||||
2.75% (3 mo. USD LIBOR + 0.65%), 10/01/2021(b) | 8,850,000 | 8,882,385 | |||||||||||||
2.76% (3 mo. USD LIBOR + 0.65%), 06/25/2022(b) | 12,000,000 | 12,060,979 | |||||||||||||
BPCE S.A. (France), 3.37% (3 mo. USD LIBOR + 1.22%), | 12,000,000 | 12,156,144 | |||||||||||||
Citibank N.A., 2.63% (3 mo. USD LIBOR + 0.50%), 06/12/2020(b) | 2,000,000 | 2,005,967 | |||||||||||||
Citigroup, Inc., 2.80% (3 mo. USD LIBOR + 0.79%), 01/10/2020(b) | 9,400,000 | 9,408,084 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
48 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | ||||||||||||||
Diversified Banks-(continued) |
| ||||||||||||||
Citizens Bank N.A. | |||||||||||||||
2.68% (3 mo. USD LIBOR + 0.54%), 03/02/2020(b) | $ | 10,000,000 | $ | 10,012,528 | |||||||||||
2.70% (3 mo. USD LIBOR + 0.57%), 05/26/2020(b) | 2,884,000 | 2,891,233 | |||||||||||||
3.25%, 02/14/2022 | 3,061,000 | 3,141,272 | |||||||||||||
Commonwealth Bank of Australia (Australia) | |||||||||||||||
2.85% (3 mo. USD LIBOR + 0.64%), 11/07/2019(b)(c) | 3,402,000 | 3,402,279 | |||||||||||||
2.30%, 03/12/2020 | 5,995,000 | 6,003,718 | |||||||||||||
Cooperatieve Rabobank U.A. (Netherlands), 2.25%, 01/14/2020 | 14,474,000 | 14,483,253 | |||||||||||||
Credit Agricole Corporate & Investment Bank S.A. (France) | |||||||||||||||
2.30% (3 mo. USD LIBOR + 0.40%), 05/03/2021(b)(c) | 10,000,000 | 10,017,630 | |||||||||||||
2.71% (3 mo. USD LIBOR + 0.63%), 10/03/2021(b) | 7,360,000 | 7,382,155 | |||||||||||||
Credit Agricole S.A. (France), 3.10% (3 mo. USD LIBOR + 0.97%), 06/10/2020(b)(c) | 9,750,000 | 9,807,514 | |||||||||||||
HSBC Bank PLC (United Kingdom), 4.13%, 08/12/2020(c) | 4,500,000 | 4,579,209 | |||||||||||||
HSBC Holdings PLC (United Kingdom), 2.78% (3 mo. USD LIBOR + 0.65%), 09/11/2021(b) | 10,714,000 | 10,739,325 | |||||||||||||
Huntington National Bank (The), 2.64% (3 mo. USD LIBOR + 0.51%), 03/10/2020(b) | 10,000,000 | 10,019,774 | |||||||||||||
JPMorgan Chase & Co., 2.82% (3 mo. USD LIBOR + 0.68%), 06/01/2021(b) | 7,257,000 | 7,278,335 | |||||||||||||
JPMorgan Chase Bank, N.A., 2.49% (3 mo. USD LIBOR + 0.37%), 02/19/2021(b) | 10,730,000 | 10,739,293 | |||||||||||||
Lloyds Bank PLC (United Kingdom), 2.70% (3 mo. USD LIBOR + 0.49%), 05/07/2021(b) | 6,521,000 | 6,532,828 | |||||||||||||
Mitsubishi UFJ Financial Group, Inc. (Japan) | |||||||||||||||
4.02% (3 mo. USD LIBOR + 1.88%), 03/01/2021(b) | 3,342,000 | 3,409,763 | |||||||||||||
2.59% (3 mo. USD LIBOR + 0.65%), 07/26/2021(b) | 6,000,000 | 6,023,096 | |||||||||||||
3.19% (3 mo. USD LIBOR + 1.06%), 09/13/2021(b) | 5,000,000 | 5,057,281 | |||||||||||||
Mizuho Financial Group, Inc. (Japan), 3.27% (3 mo. USD LIBOR + 1.14%), 09/13/2021(b) | 6,850,000 | 6,932,302 | |||||||||||||
MUFG Union Bank, N.A., 3.15%, 04/01/2022 | 7,500,000 | 7,711,551 | |||||||||||||
National Australia Bank Ltd. (Australia) | |||||||||||||||
2.61% (3 mo. USD LIBOR + 0.71%), 11/04/2021(b)(c) | 12,000,000 | 12,127,778 | |||||||||||||
2.50%, 05/22/2022 | 12,500,000 | 12,682,122 |
Principal Amount | Value | ||||||||||||||
Diversified Banks-(continued) |
| ||||||||||||||
NatWest Markets PLC (United Kingdom), 3.63%, 09/29/2022(c) | $ | 17,600,000 | $ | 18,247,563 | |||||||||||
Nordea Bank Abp (Finland), 2.59% (3 mo. USD LIBOR + 0.47%), 05/29/2020(b)(c) | 3,000,000 | 3,007,271 | |||||||||||||
Royal Bank of Canada (Canada) | |||||||||||||||
2.18% (3 mo. USD LIBOR + 0.24%), 10/26/2020(b) | 5,000,000 | 5,012,284 | |||||||||||||
2.33% (3 mo. USD LIBOR + 0.39%), 04/30/2021(b) | 10,000,000 | 10,033,084 | |||||||||||||
Sumitomo Mitsui Banking Corp. (Japan) | |||||||||||||||
2.51%, 01/17/2020 | 5,216,000 | 5,221,891 | |||||||||||||
2.37% (3 mo. USD LIBOR + 0.37%), 10/16/2020(b) | 6,667,000 | 6,682,299 | |||||||||||||
Sumitomo Mitsui Financial Group, Inc. (Japan) | |||||||||||||||
3.78% (3 mo. USD LIBOR + 1.68%), 03/09/2021(b) | 1,000,000 | 1,018,560 | |||||||||||||
3.11% (3 mo. USD LIBOR + 1.14%), 10/19/2021(b) | 2,300,000 | 2,329,377 | |||||||||||||
Toronto-Dominion Bank (The) (Canada), 2.75% (3 mo. USD LIBOR + 0.35%), 07/22/2022(b) | 10,000,000 | 9,927,446 | |||||||||||||
UBS AG (Switzerland), 4.88%, 08/04/2020 | 10,250,000 | 10,483,164 | |||||||||||||
United Overseas Bank Ltd. (Singapore), 2.41% (3 mo. USD LIBOR + 0.48%), 04/23/2021(b)(c) | 2,500,000 | 2,505,294 | |||||||||||||
US Bank N.A., 2.55% (3 mo. USD LIBOR + 0.38%), 11/16/2021(b) | 9,091,000 | 9,123,141 | |||||||||||||
Wells Fargo Bank, N.A., 2.53% | 15,000,000 | 15,010,421 | |||||||||||||
|
| ||||||||||||||
336,027,594 | |||||||||||||||
|
| ||||||||||||||
Diversified CapitalMarkets-0.83% |
| ||||||||||||||
Macquarie Bank Ltd. (Australia), 2.85%, 01/15/2021(c)(d) | 13,000,000 | 13,139,148 | |||||||||||||
UBS Group Funding Switzerland AG (Switzerland), 3.77% (3 mo. USD LIBOR + 1.78%), 04/14/2021(b)(c) | 8,550,000 | 8,719,062 | |||||||||||||
|
| ||||||||||||||
21,858,210 | |||||||||||||||
|
| ||||||||||||||
ElectricUtilities-1.45% |
| ||||||||||||||
Exelon Generation Co. LLC, 4.00%, 10/01/2020 | 10,000,000 | 10,133,125 | |||||||||||||
Georgia Power Co., Series C, 2.00%, 09/08/2020 | 15,000,000 | 15,014,491 | |||||||||||||
NextEra Energy Capital Holdings, Inc., Series H, 3.34%, 09/01/2020 | 7,200,000 | 7,277,362 | |||||||||||||
Progress Energy, Inc., 4.88%, 12/01/2019 | 5,680,000 | 5,692,252 | |||||||||||||
|
| ||||||||||||||
38,117,230 | |||||||||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
49 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | |||||||||||
Environmental & FacilitiesServices-0.23% |
| |||||||||||
Waste Management, Inc., 4.75%, 06/30/2020 | $ | 5,893,000 | $ | 6,001,786 | ||||||||
|
| |||||||||||
Health CareDistributors-0.14% | ||||||||||||
McKesson Corp., 3.65%, 11/30/2020 | 3,583,000 | 3,645,347 | ||||||||||
|
| |||||||||||
Health CareEquipment-0.17% | ||||||||||||
Zimmer Biomet Holdings, Inc., 2.91% (3 mo. USD LIBOR + 0.75%), 03/19/2021(b) | 4,450,000 | 4,450,401 | ||||||||||
|
| |||||||||||
Health CareServices-1.43% | ||||||||||||
Cigna Corp., 3.20%, 09/17/2020 | 15,000,000 | 15,158,658 | ||||||||||
CVS Health Corp. | ||||||||||||
2.73% (3 mo. USD LIBOR + 0.63%), 03/09/2020(b) | 3,450,000 | 3,455,560 | ||||||||||
3.13%, 03/09/2020 | 5,000,000 | 5,019,423 | ||||||||||
2.82% (3 mo. USD LIBOR + 0.72%), 03/09/2021(b) | 3,250,000 | 3,268,803 | ||||||||||
Express Scripts Holding Co., 2.87% (3 mo. USD LIBOR + 0.75%), 11/30/2020(b) | 10,700,000 | 10,700,979 | ||||||||||
|
| |||||||||||
37,603,423 | ||||||||||||
|
| |||||||||||
Hotels, Resorts & CruiseLines-0.78% |
| |||||||||||
Marriott International, Inc. | ||||||||||||
2.75% (3 mo. USD LIBOR + 0.65%), 03/08/2021(b) | 1,986,000 | 1,995,205 | ||||||||||
Series N, 3.13%, 10/15/2021 | 11,412,000 | 11,619,879 | ||||||||||
Series Y, 2.74% (3 mo. USD LIBOR + 0.60%), 12/01/2020(b). | 6,667,000 | 6,685,740 | ||||||||||
|
| |||||||||||
20,300,824 | ||||||||||||
|
| |||||||||||
IndustrialConglomerates-0.45% |
| |||||||||||
Siemens Financieringsmaatschappij |
| |||||||||||
2.46% (3 mo. USD LIBOR + 0.34%), 03/16/2020(b)(c) | 5,000,000 | 5,008,666 | ||||||||||
1.70%, 09/15/2021(c) | 6,904,000 | 6,889,977 | ||||||||||
|
| |||||||||||
11,898,643 | ||||||||||||
|
| |||||||||||
InsuranceBrokers-1.20% |
| |||||||||||
Aon Corp., 5.00%, 09/30/2020 | 12,500,000 | 12,839,965 | ||||||||||
Aon PLC, 2.80%, 03/15/2021 | 7,510,000 | 7,571,626 | ||||||||||
Marsh & McLennan Cos., Inc. | ||||||||||||
3.50%, 12/29/2020 | 5,000,000 | 5,089,184 | ||||||||||
3.30% (3 mo. USD LIBOR + 1.20%), 12/29/2021(b) | 6,000,000 | 6,007,547 | ||||||||||
|
| |||||||||||
31,508,322 | ||||||||||||
|
| |||||||||||
Integrated Oil &Gas-1.31% |
| |||||||||||
BP Capital Markets PLC (United Kingdom), 2.52%, 01/15/2020 | 12,000,000 | 12,014,007 | ||||||||||
Chevron Corp., 1.99%, 03/03/2020 | 12,735,000 | 12,741,601 | ||||||||||
Occidental Petroleum Corp., 2.60%, 08/13/2021 | 9,588,000 | 9,651,537 | ||||||||||
|
| |||||||||||
34,407,145 | ||||||||||||
|
|
Principal Amount | Value | |||||||||||
Integrated TelecommunicationServices-2.08% |
| |||||||||||
AT&T, Inc. |
| |||||||||||
3.03% (3 mo. USD LIBOR + 0.93%), 06/30/2020(b) | $ | 9,500,000 | $ | 9,550,013 | ||||||||
2.95% (3 mo. USD LIBOR + 0.95%), 07/15/2021(b) | 11,315,000 | 11,433,632 | ||||||||||
Deutsche Telekom International Finance B.V. (Germany), 2.58% (3 mo. USD LIBOR + 0.58%), 01/17/2020(b)(c) | 9,500,000 | 9,508,786 | ||||||||||
Verizon Communications, Inc., 2.70% (3 mo. USD LIBOR + 0.55%), 05/22/2020(b) | 23,826,000 | 23,894,137 | ||||||||||
|
| |||||||||||
54,386,568 | ||||||||||||
|
| |||||||||||
Investment Banking &Brokerage-1.76% |
| |||||||||||
Goldman Sachs Group, Inc. (The) | ||||||||||||
3.09% (3 mo. USD LIBOR + 1.16%), 04/23/2020(b) | 8,000,000 | 8,032,408 | ||||||||||
3.32% (3 mo. USD LIBOR + 1.20%), 09/15/2020(b) | 250,000 | 251,973 | ||||||||||
2.83% (3 mo. USD LIBOR + 0.73%), 12/27/2020(b) | 8,485,000 | 8,493,179 | ||||||||||
Morgan Stanley | ||||||||||||
3.10% (3 mo. USD LIBOR + 0.98%), 06/16/2020(b) | 10,000,000 | 10,049,806 | ||||||||||
2.73% (3 mo. USD LIBOR + 0.55%), 02/10/2021(b) | 1,250,000 | 1,251,203 | ||||||||||
2.82% (SOFR + 0.83%), 06/10/2022(b) | 18,000,000 | 18,044,855 | ||||||||||
|
| |||||||||||
46,123,424 | ||||||||||||
|
| |||||||||||
IT Consulting & OtherServices-0.38% |
| |||||||||||
International Business Machines Corp., 2.58% (3 mo. USD LIBOR + 0.40%), 05/13/2021(b) | 10,000,000 | 10,048,710 | ||||||||||
|
| |||||||||||
Life & HealthInsurance-2.87% |
| |||||||||||
AIG Global Funding | ||||||||||||
2.57% (3 mo. USD LIBOR + 0.46%), 06/25/2021(b)(c) | 4,000,000 | 4,018,021 | ||||||||||
2.30%, 07/01/2022(c) | 5,000,000 | 5,026,660 | ||||||||||
Jackson National Life Global Funding | ||||||||||||
2.10%, 10/25/2021(c) | 10,350,000 | 10,379,767 | ||||||||||
3.30%, 02/01/2022(c) | 10,000,000 | 10,284,098 | ||||||||||
New York Life Global Funding | ||||||||||||
1.95%, 09/28/2020(c) | 12,000,000 | 12,015,332 | ||||||||||
2.22% (3 mo. USD LIBOR + 0.28%), 01/28/2021(b)(c) | 3,500,000 | 3,505,901 | ||||||||||
2.00%, 04/13/2021(c) | 5,000,000 | 5,011,314 | ||||||||||
2.56% (3 mo. USD LIBOR + 0.32%), 08/06/2021(b)(c) | 6,665,000 | 6,679,890 | ||||||||||
2.44% (3 mo. USD LIBOR + 0.44%), 07/12/2022(b)(c) | 7,407,000 | 7,425,619 | ||||||||||
Principal Life Global Funding II | ||||||||||||
2.41% (3 mo. USD LIBOR + 0.30%), 06/26/2020(b)(c) | 7,500,000 | 7,508,995 | ||||||||||
2.63%, 11/19/2020(c) | 3,470,000 | 3,488,893 | ||||||||||
|
| |||||||||||
75,344,490 | ||||||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
50 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | ||||||||||||||
Managed HealthCare-0.91% | |||||||||||||||
Aetna, Inc., 4.13%, 06/01/2021 | $ | 12,000,000 | $ | 12,311,307 | |||||||||||
UnitedHealth Group, Inc. | |||||||||||||||
2.70%, 07/15/2020 | 9,685,000 | 9,745,308 | |||||||||||||
2.13%, 03/15/2021 | 1,735,000 | 1,742,363 | |||||||||||||
|
| ||||||||||||||
23,798,978 | |||||||||||||||
|
| ||||||||||||||
Metal & GlassContainers-0.11% |
| ||||||||||||||
Reynolds Group Issuer, Inc./LLC, 5.50% (3 mo. USD LIBOR + 3.50%), 07/15/2021(b)(c) | 2,800,000 | 2,814,000 | |||||||||||||
|
| ||||||||||||||
Movies &Entertainment-0.18% |
| ||||||||||||||
Walt Disney Co. (The), 2.36% (3 mo. USD LIBOR + 0.25%), | 4,762,000 | 4,776,522 | |||||||||||||
|
| ||||||||||||||
Multi-lineInsurance-1.74% | |||||||||||||||
Assurant, Inc., 3.36% (3 mo. USD LIBOR + 1.25%), 03/26/2021(b) | 510,000 | 510,040 | |||||||||||||
MassMutual Global Funding II, 2.50%, 04/13/2022(c) | 7,500,000 | 7,602,023 | |||||||||||||
Metropolitan Life Global Funding I | |||||||||||||||
2.13% (SOFR + 0.57%), 09/07/2020(b)(c) | 5,402,000 | 5,415,625 | |||||||||||||
2.50%, 12/03/2020(c) | 15,794,000 | 15,918,007 | |||||||||||||
2.26% (3 mo. USD LIBOR + 0.23%), 01/08/2021(b)(c) | 16,100,000 | 16,122,003 | |||||||||||||
|
| ||||||||||||||
45,567,698 | |||||||||||||||
|
| ||||||||||||||
OfficeREITs-0.15% |
| ||||||||||||||
Reckson Operating Partnership L.P., 7.75%, 03/15/2020 | 3,866,000 | 3,941,294 | |||||||||||||
|
| ||||||||||||||
Oil & Gas Exploration &Production-0.85% |
| ||||||||||||||
ConocoPhillips Co., 3.06% (3 mo. USD LIBOR + 0.90%), | 11,853,000 | 12,025,505 | |||||||||||||
EOG Resources, Inc., 4.40%, 06/01/2020 | 10,000,000 | 10,147,679 | |||||||||||||
|
| ||||||||||||||
22,173,184 | |||||||||||||||
|
| ||||||||||||||
Oil & Gas Refining &Marketing-0.07% |
| ||||||||||||||
Phillips 66, 2.73% (3 mo. USD LIBOR + 0.60%), 02/26/2021(b) | 1,900,000 | 1,900,274 | |||||||||||||
|
| ||||||||||||||
Oil & Gas Storage &Transportation-1.83% |
| ||||||||||||||
Enbridge, Inc. (Canada), 2.82% (3 mo. USD LIBOR + 0.70%), 06/15/2020(b) | 1,000,000 | 1,001,658 | |||||||||||||
Energy Transfer Operating, L.P., 4.15%, 10/01/2020 | 3,140,000 | 3,186,303 | |||||||||||||
Enterprise Products Operating LLC, 5.25%, 01/31/2020 | 12,500,000 | 12,596,542 | |||||||||||||
Kinder Morgan Energy Partners L.P., 5.30%, 09/15/2020 | 16,742,000 | 17,199,414 | |||||||||||||
Kinder Morgan, Inc., 5.00%, 02/15/2021(c) | 8,794,000 | 9,086,385 | |||||||||||||
MPLX L.P., 3.20% (3 mo. USD LIBOR + 1.10%), 09/09/2022(b) | 2,844,000 | 2,854,710 | |||||||||||||
Williams Cos., Inc. (The), 4.13%, 11/15/2020 | 2,000,000 | 2,031,124 | |||||||||||||
|
| ||||||||||||||
47,956,136 | |||||||||||||||
|
|
Principal Amount | Value | ||||||||||||||
Other Diversified FinancialServices-0.43% |
| ||||||||||||||
Aviation Capital Group LLC | |||||||||||||||
3.08% (3 mo. USD LIBOR + 0.95%), 06/01/2021(b)(c) | $ | 9,574,000 | $ | 9,596,424 | |||||||||||
2.61% (3 mo. USD LIBOR + 0.67%), 07/30/2021(b)(c) | 1,775,000 | 1,770,789 | |||||||||||||
|
| ||||||||||||||
11,367,213 | |||||||||||||||
|
| ||||||||||||||
Packaged Foods &Meats-1.17% |
| ||||||||||||||
General Mills, Inc. | |||||||||||||||
2.54% (3 mo. USD LIBOR + 0.54%), 04/16/2021(b) | 8,100,000 | 8,124,149 | |||||||||||||
3.20%, 04/16/2021 | 6,000,000 | 6,109,181 | |||||||||||||
Kraft Heinz Foods Co., 2.75% (3 mo. USD LIBOR + 0.57%), | 8,350,000 | 8,344,106 | |||||||||||||
Mondelez International Holdings | |||||||||||||||
Netherlands B.V., 2.00%, | 8,052,000 | 8,057,559 | |||||||||||||
|
| ||||||||||||||
30,634,995 | |||||||||||||||
|
| ||||||||||||||
Pharmaceuticals-1.52% |
| ||||||||||||||
Allergan Funding SCS | |||||||||||||||
3.00%, 03/12/2020 | 9,155,000 | 9,178,365 | |||||||||||||
3.39% (3 mo. USD LIBOR + 1.26%), 03/12/2020(b) | 2,600,000 | 2,608,581 | |||||||||||||
Bayer US Finance II LLC (Germany), 2.74% (3 mo. USD LIBOR + 0.63%), 06/25/2021(b)(c) | 13,606,000 | 13,645,707 | |||||||||||||
Bristol-Myers Squibb Co., 2.37% (3 mo. USD LIBOR + 0.20%), 11/16/2020(b)(c) | 7,500,000 | 7,505,222 | |||||||||||||
GlaxoSmithKline Capital PLC (United Kingdom), 2.53% (3 mo. USD LIBOR + 0.35%), 05/14/2021(b) | 6,757,000 | 6,776,052 | |||||||||||||
|
| ||||||||||||||
39,713,927 | |||||||||||||||
|
| ||||||||||||||
RegionalBanks-1.34% |
| ||||||||||||||
KeyBank N.A., 2.57% (3 mo. USD LIBOR + 0.66%), 02/01/2022(b) | 11,538,000 | 11,607,382 | |||||||||||||
SunTrust Bank | |||||||||||||||
2.25%, 01/31/2020 | 4,227,000 | 4,229,069 | |||||||||||||
2.44% (3 mo. USD LIBOR + 0.50%), 10/26/2021(b) | 8,277,000 | 8,291,113 | |||||||||||||
2.71% (3 mo. USD LIBOR + 0.59%), 05/17/2022(b) | 10,833,000 | 10,876,611 | |||||||||||||
|
| ||||||||||||||
35,004,175 | |||||||||||||||
|
| ||||||||||||||
ResidentialREITs-1.17% |
| ||||||||||||||
American Campus Communities Operating Partnership L.P., 3.35%, 10/01/2020 | 25,016,000 | 25,286,678 | |||||||||||||
AvalonBay Communities, Inc., 2.43% (3 mo. USD LIBOR + 0.43%), 01/15/2021(b) | 5,350,000 | 5,348,813 | |||||||||||||
|
| ||||||||||||||
30,635,491 | |||||||||||||||
|
| ||||||||||||||
Restaurants-0.41% |
| ||||||||||||||
McDonald’s Corp., 2.37% (3 mo. USD LIBOR + 0.43%), | 10,652,000 | 10,654,055 | |||||||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
51 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | |||||||||
RetailREITs-0.51% | ||||||||||
Realty Income Corp., 3.25%, 10/15/2022 | $ | 3,798,000 | $ | 3,934,679 | ||||||
WEA Finance LLC/Westfield UK & Europe Finance PLC (France), 3.25%, 10/05/2020(c) | 9,397,000 | 9,496,868 | ||||||||
|
| |||||||||
13,431,547 | ||||||||||
|
| |||||||||
Semiconductors-0.88% | ||||||||||
Analog Devices, Inc., 2.50%, 12/05/2021 | 11,789,000 | 11,892,605 | ||||||||
Intel Corp., 2.26% (3 mo. USD LIBOR + 0.08%), 05/11/2020(b)(d) | 1,155,000 | 1,155,427 | ||||||||
QUALCOMM, Inc., 2.69% (3 mo. USD LIBOR + 0.55%), 05/20/2020(b) | 10,000,000 | 10,015,142 | ||||||||
|
| |||||||||
23,063,174 | ||||||||||
|
| |||||||||
SoftDrinks-0.49% | ||||||||||
Keurig Dr Pepper, Inc., 3.55%, 05/25/2021 | 12,500,000 | 12,790,503 | ||||||||
|
| |||||||||
SpecializedREITs-0.32% |
| |||||||||
American Tower Corp., 2.80%, 06/01/2020 | 8,423,000 | 8,459,306 | ||||||||
|
| |||||||||
SystemsSoftware-0.85% | ||||||||||
Oracle Corp., 2.50%, 05/15/2022 | 10,000,000 | 10,158,499 | ||||||||
VMware, Inc., 2.30%, 08/21/2020 . | 12,000,000 | 12,019,566 | ||||||||
|
| |||||||||
22,178,065 | ||||||||||
|
| |||||||||
Technology Hardware, Storage &Peripherals-0.82% |
| |||||||||
Apple, Inc., 2.00%, 11/13/2020 | 9,875,000 | 9,907,067 | ||||||||
Hewlett Packard Enterprise Co. | ||||||||||
2.81% (3 mo. USD LIBOR + 0.68%), 03/12/2021(b) | 4,580,000 | 4,598,389 | ||||||||
2.76% (3 mo. USD LIBOR + 0.72%), 10/05/2021(b) | 7,059,000 | 7,059,087 | ||||||||
|
| |||||||||
21,564,543 | ||||||||||
|
| |||||||||
Tobacco-0.78% |
| |||||||||
Altria Group, Inc., 2.63%, 01/14/2020 | 8,314,000 | 8,317,739 | ||||||||
BAT International Finance PLC (United Kingdom), 2.75%, 06/15/2020(c) | 12,135,000 | 12,191,563 | ||||||||
|
| |||||||||
20,509,302 | ||||||||||
|
| |||||||||
Trading Companies &Distributors-0.48% |
| |||||||||
Air Lease Corp., 3.50%, 01/15/2022 | 12,260,000 | 12,612,032 | ||||||||
|
| |||||||||
Total U.S. Dollar Denominated Bonds & Notes | 1,406,515,817 | |||||||||
|
| |||||||||
Asset-BackedSecurities-16.69% |
| |||||||||
ABPCI Direct Lending Fund CLO I LLC (Cayman Islands), Series2017-1A, Class A1, 3.75% (3 mo. USD LIBOR + 1.78%), 07/20/2029(b)(c) | 1,800,000 | 1,799,340 |
Principal Amount | Value | |||||||||
Accredited Mortgage Loan Trust, Series2007-1, Class A3, 1.95% (1 mo. USD LIBOR + 0.13%), 02/25/2037(b) | $ | 45,943 | $ | 46,050 | ||||||
ACIS CLO Ltd. (Cayman Islands), Series2015-6A, Classs A1, 3.50% (3 mo. USD LIBOR + 1.59%), 05/01/2027(b)(c) | 1,761,491 | 1,762,804 | ||||||||
AmeriCredit Automobile Receivables Trust, Series2016-2, Class C, 2.87%, 11/08/2021 | 7,902,487 | 7,920,926 | ||||||||
Angel Oak Mortgage Trust I LLC Series2019-1, Class A1, 3.92%, 11/25/2048(c)(e) | 9,291,823 | 9,454,507 | ||||||||
Series2019-2, Class A1, 3.63%, 03/25/2049(c)(e) | 9,897,879 | 10,031,362 | ||||||||
Series2019-4, Class A1, 2.99%, 07/26/2049(c)(e) | 7,167,518 | 7,237,866 | ||||||||
Avery Point V CLO Ltd. (Cayman Islands), Series2014-5A, Class AR, 2.98% (3 mo. USD LIBOR + 0.98%), 07/17/2026(b)(c) | 4,251,329 | 4,251,538 | ||||||||
Avery Point VI CLO Ltd. (Cayman Islands), Series2015-6A, Class AR, 2.94% (3 mo. USD LIBOR + 1.05%), 08/05/2027(b)(c) | 9,000,000 | 8,986,024 | ||||||||
Bear Stearns Asset Backed Securities I Trust, Series 2006- HE9, Class 2A, 1.96% (1 mo. USD LIBOR + 0.14%), 11/25/2036(b) | 2,028,377 | 1,991,172 | ||||||||
Capital One Multi-Asset Execution Trust, Series2019-A1, Class A1, 2.84%, 12/15/2024 | 12,000,000 | 12,273,617 | ||||||||
CarMax Auto Owner Trust, Series2017-2, Class A3, 1.93%, 03/15/2022 | 3,886,712 | 3,886,651 | ||||||||
Chesapeake Funding II LLC (Canada), Series2018-3A, Class A1, 3.39%, | 5,811,171 | 5,923,354 | ||||||||
CIT Mortgage Loan Trust, Series2007-1, Class 1A, 3.17% (1 mo. USD LIBOR + 1.35%), 10/25/2037(b)(c) | 1,874,721 | 1,899,766 | ||||||||
CLNS Trust, Series 2017-IKPR, Class A, 2.73% (1 mo. USD LIBOR + 0.80%), | 3,000,000 | 2,998,848 | ||||||||
COLT Mortgage Loan Trust | ||||||||||
Series2019-1, Class A1, 3.71%, 03/25/2049(c)(e) | 2,857,024 | 2,892,158 | ||||||||
Series2019-4, Class A1, 2.58%, 11/25/2049(c)(e) | 12,284,787 | 12,332,627 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
52 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | |||||||||
Countrywide Asset-Backed Ctfs. | ||||||||||
Series2004-SD2, Class M1, 2.44% (1 mo. USD LIBOR + 0.62%), 06/25/2033(b)(c) | $ | 380,352 | $ | 382,106 | ||||||
Series2006-6, Class 1A1, 1.99% (1 mo. USD LIBOR + 0.17%), 09/25/2036(b) | 1,954,463 | 1,943,840 | ||||||||
Crown Point CLO III Ltd. (Cayman Islands), Series2015-3A, Class A2R, 3.45% (3 mo. USD LIBOR + 1.45%), 12/31/2027(b)(c) | 2,000,000 | 1,985,840 | ||||||||
CSMC, Series2014-2R, Class 27A1, 2.22% (1 mo. USD LIBOR + 0.20%), 02/27/2046(b)(c) | 219,111 | 214,259 | ||||||||
CWABS Inc. Asset-Backed Certificates Trust, Series2004-4, Class M1, 2.54% (1 mo. USD LIBOR + 0.72%), 07/25/2034(b) | 2,108,090 | 2,122,754 | ||||||||
Deephaven Residential Mortgage Trust | ||||||||||
Series2019-1A, Class A1, 3.74%, 01/25/2059(c)(e) | 8,721,280 | 8,821,152 | ||||||||
Series2019-2A, Class A1, 3.56%, 04/25/2059(c)(e) | 6,793,456 | 6,856,119 | ||||||||
Diamond CLO Ltd. (Cayman Islands), Series2019-1A, Class A1, 3.54% (3 mo. USD LIBOR + 1.60%), 04/25/2029(b)(c) | 12,000,000 | 12,000,388 | ||||||||
Discover Card Execution Note Trust, Series2019-A2, Class A, 2.19% (1 mo. USD LIBOR + 0.27%), 12/15/2023(b) | 7,500,000 | 7,513,010 | ||||||||
DT Auto Owner Trust, Series 2019-3A, Class A, 2.55%, 08/15/2022(c) | 4,967,443 | 4,975,806 | ||||||||
Enterprise Fleet Financing LLC, Series2019-1, Class A2, 2.98%, 10/22/2024(c) | 4,500,000 | 4,550,795 | ||||||||
Fortress Credit Opportunities IX CLO Ltd. (Cayman Islands), Series2017-9A, Class A1T, 4.07% (3 mo. USD LIBOR + 1.55%), | 2,000,000 | 1,988,534 | ||||||||
FS KKR MM CLO 1 LLC, Series2019-1A, Class A1, 3.70% (3 mo. USD LIBOR + 1.70%), | 9,000,000 | 9,003,438 | ||||||||
GCAT LLC, Series 2019-NQM1, Class A1, 2.99%, 02/25/2059(c)(e)(f) | 13,773,217 | 13,874,812 | ||||||||
GCAT Trust, Series 2019-NQM2, Class A1, 2.86%, 09/25/2059(c)(e)(f) | 11,742,264 | 11,806,015 | ||||||||
Golden Credit Card Trust (Canada), Series2019-1A, Class A, 2.36% (1 mo. USD LIBOR + 0.45%), 12/15/2022(b)(c) | 14,500,000 | 14,549,955 |
Principal Amount | Value | |||||||||
Golub Capital BDC CLO LLC, Series2014-1A, Class BR, 3.34% (3 mo. USD LIBOR + 1.40%), 04/25/2026(b)(c) | $ | 1,000,000 | $ | 999,459 | ||||||
Golub Capital Partners CLO 16 Ltd. (Cayman Islands), Series 2013-16A, Class A1R, 3.64% (3 mo. USD LIBOR + 1.70%), 07/25/2029(b)(c) | 4,800,000 | 4,796,357 | ||||||||
Golub Capital Partners CLO 36m Ltd. (Cayman Islands), Series2018-36A, Class A, 3.19% (3 mo. USD LIBOR + 1.30%), 02/05/2031(b)(c) | 5,000,000 | 4,912,500 | ||||||||
Golub Capital Partners CLO 39B Ltd. (Cayman Islands), Series 2018-39A, Class A1, 3.12% (3 mo. USD LIBOR + 1.15%), 10/20/2028(b)(c) | 10,000,000 | 9,990,099 | ||||||||
GS Mortgage Securities Corp. Trust, Series 2017-STAY, Class A, 2.76% (1 mo. USD LIBOR + 0.85%), 07/15/2032(b)(c) | 12,200,000 | 12,203,904 | ||||||||
GSAMP Trust, Series2005-HE6, Class M1, 2.26% (1 mo. USD LIBOR + 0.44%), 11/25/2035(b). | 805,829 | 809,847 | ||||||||
Halcyon Loan Advisors Funding Ltd. (Cayman Islands), Series 2012-1A, Class B, 5.16% (3 mo. USD LIBOR + 3.00%), 08/15/2023(b)(c) | 1,000,000 | 1,005,082 | ||||||||
Hertz Vehicle Financing II L.P., Series2015-1A, Class A, 2.73%, 03/25/2021(c) | 19,000,000 | 19,031,103 | ||||||||
Homeward Opportunities Fund I Trust, Series2019-1, Class A1, 3.45%, 01/25/2059(c)(e) | 9,899,057 | 10,025,343 | ||||||||
HSI Asset Securitization Corp. Trust, Series 2006-OPT2, Class M2, 2.21% (1 mo. USD LIBOR + 0.39%), 01/25/2036(b) | 2,500,000 | 2,501,665 | ||||||||
Hunt CRE Ltd. (Cayman Islands), Series2017-FL1, Class A, 2.91% (1 mo. USD LIBOR + 1.00%), 08/15/2034(b)(c) | 5,500,000 | 5,504,585 | ||||||||
KKR CLO 21 Ltd. (Cayman Islands), Series A, 3.00% (3 mo. USD LIBOR + 1.00%), 04/15/2031(b)(c) | 2,000,000 | 1,974,552 | ||||||||
Nationstar Home Equity Loan Trust, Series2007-B, Class 1AV1, 2.04% (1 mo. USD LIBOR + 0.22%), 04/25/2037(b) | 2,558,284 | 2,537,991 | ||||||||
Navient Private Education Refi Loan Trust | ||||||||||
Series2019-A, Class A1, 3.03%, 01/15/2043(c) | 2,994,158 | 3,021,760 | ||||||||
Series2019-FA, Class A1, 2.18%, 08/15/2068(c) | 6,500,000 | 6,511,817 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
53 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | |||||||||
New Residential Mortgage Loan Trust | ||||||||||
Class 2019-NQM3, Class A1, 2.80%, 07/25/2049(c)(e) | $ | 11,407,324 | $ | 11,459,773 | ||||||
Series2017-5A, Class A1, 3.32% (1 mo. USD LIBOR + 1.50%), 06/25/2057(b)(c) | 995,305 | 1,014,563 | ||||||||
Series 2019-NQM4, Class A1, 2.49%, 09/25/2059(c)(e) | 11,906,420 | 11,927,511 | ||||||||
Newstar Commercial Loan Funding LLC, Series2017-1A, Class BN, 4.66% (3 mo. USD LIBOR + 2.50%), 03/20/2027(b)(c) | 2,500,000 | 2,503,781 | ||||||||
NextGear Floorplan Master Owner Trust | ||||||||||
Series2017-1A, Class A1, 2.76% (1 mo. USD LIBOR + 0.85%), 04/18/2022(b)(c) | 10,000,000 | 10,023,730 | ||||||||
Series2019-1A, Class A1, 2.56% (1 mo. USD LIBOR + 0.65%), 02/15/2024(b)(c) | 12,750,000 | 12,773,768 | ||||||||
Series2019-2A, Class A1, 2.64% (1 mo. USD LIBOR + 0.70%), 10/15/2024(b)(c) | 10,000,000 | 10,006,250 | ||||||||
NXT Capital CLO LLC, Series 2017-1A, Class A, 3.67% (3 mo. USD LIBOR + 1.70%), 04/20/2029(b)(c) | 7,500,000 | 7,500,070 | ||||||||
OBX Trust, Series 2018-EXP1, Class 2A1, 2.67% (1 mo. USD LIBOR + 0.85%), 04/25/2048(b)(c) | 2,990,508 | 2,996,336 | ||||||||
OCP CLO Ltd. (Cayman Islands), Series2014-7A, Class A1RR, 3.09% (3 mo. USD LIBOR + 1.12%), 07/20/2029(b)(c) | 6,750,000 | 6,710,535 | ||||||||
Recette CLO Ltd. (Cayman Islands), Series2015-1A, Class BR, 3.27% (3 mo. USD LIBOR + 1.30%), 10/20/2027(b)(c) | 2,000,000 | 1,985,808 | ||||||||
Residential Mortgage Loan Trust | ||||||||||
Series2019-1, Class M1, 3.94%, 10/25/2058(c)(e) | 8,718,267 | 8,859,517 | ||||||||
Series2019-3, Class A1, 2.63%, 09/25/2059(c)(e) | 11,888,901 | 11,902,091 | ||||||||
Social Professional Loan Program LLC, Series2019-B, Class A1FX, 2.78%, 08/17/2048(c) | 5,476,217 | 5,522,943 | ||||||||
Sudbury Mill CLO Ltd. (Cayman Islands), Series2013-1A, Class B1R, 3.65% (3 mo. USD LIBOR + 1.65%), 01/17/2026(b)(c) | 2,500,000 | 2,501,855 | ||||||||
TICP CLOII-2 Ltd. (Cayman Islands), Series2018-IIA, Class A1, 2.81% (3 mo. USD LIBOR + 0.84%), 04/20/2028(b)(c) | 11,000,000 | 10,944,033 |
Principal Amount | Value | |||||||||
Venture XII CLO Ltd. (Cayman Islands), Series2012-12A, Class ARR, 2.94% (3 mo. USD LIBOR + 0.80%), 02/28/2026(b)(c) | $ | 4,753,493 | $ | 4,746,090 | ||||||
Venture XVI CLO Ltd. (Cayman Islands), Series2014-16A, Class ARR, 2.85% (3 mo. USD LIBOR + 0.85%), 01/15/2028(b)(c) | 1,500,000 | 1,500,025 | ||||||||
Verus Securitization Trust | ||||||||||
Series2019-1, Class A1, 3.84%, 02/25/2059(c)(e) | 9,367,205 | 9,494,037 | ||||||||
Series2019-2, Class A1, 3.21%, 04/25/2059(c)(e) | 7,605,504 | 7,676,913 | ||||||||
Series 2019-INV1, Class A1, 3.40%, 12/25/2059(c)(e) | 7,801,760 | 7,910,002 | ||||||||
Woodmont Trust, Series2017-2A, Class A, 3.80% (3 mo. USD LIBOR + 1.80%), 07/18/2028(b)(c) | 3,600,000 | 3,597,356 | ||||||||
|
| |||||||||
Total Asset-Backed Securities |
| 437,660,484 | ||||||||
|
| |||||||||
Non-U.S. Dollar Denominated Bonds &Notes-1.92%(g) |
| |||||||||
SovereignDebt-1.92% | ||||||||||
Japan Treasury Discount Bill (Japan), Series 860, 0.00%, 01/08/2020(h) | JPY | 5,440,000,000 | 50,338,479 | |||||||
|
| |||||||||
Certificates ofDeposit-0.76% |
| |||||||||
DiversifiedBanks-0.76% |
| |||||||||
Standard Chartered Bank (United Kingdom), 2.52% (3 mo. USD LIBOR + 0.28%), 11/06/2020(b) | $ | 20,000,000 | 20,003,168 | |||||||
|
| |||||||||
U.S. Government Sponsored AgencySecurities-0.76% |
| |||||||||
Federal Home Loan Bank, 1.61% (SOFR + 0.05%), 09/28/2020(b) | 20,000,000 | 19,982,725 | ||||||||
|
| |||||||||
U.S. TreasurySecurities-0.76% |
| |||||||||
U.S. TreasuryBills-0.76%(i) |
| |||||||||
2.59%, 11/07/2019 | 200,000 | 199,947 | ||||||||
1.80%, 09/10/2020 | 20,000,000 | 19,740,049 | ||||||||
|
| |||||||||
Total U.S. Treasury Securities |
| 19,939,996 | ||||||||
|
| |||||||||
Variable Rate Senior LoanInterests-0.08%(j)(k) |
| |||||||||
Aerospace &Defense-0.08% | ||||||||||
Fly Funding II S.a.r.l (Ireland), Term Loan, 3.90% (3 mo. USD LIBOR + 2.00%), 02/09/2023 | 1,990,779 | 1,993,686 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
54 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Principal Amount | Value | |||||||||
CommercialPaper-21.38% |
| |||||||||
AT&T, Inc., Series2019-B, Class A2B, 2.75%, | $ | 10,000,000 | $ | 9,975,673 | ||||||
Banco Santander S.A. (New York Branch), 2.06%, 04/03/2020(i) | 20,000,000 | 19,841,556 | ||||||||
Bank of China Ltd., 2.23%, 11/12/2019(i) | 9,850,000 | 9,842,977 | ||||||||
Boeing Co. (The), 2.19%, 02/26/2020(c)(i) | 21,000,000 | 20,872,177 | ||||||||
Boston Scientific Corp., 2.22%, 01/16/2020(c)(i) | 15,500,000 | 15,430,313 | ||||||||
CenterPoint Energy, Inc., 2.09%, 11/15/2019(c)(i) | 10,000,000 | 9,991,812 | ||||||||
China Construction Bank Corp., 2.15%, 01/08/2020(c)(i) | 6,000,000 | 5,974,240 | ||||||||
CNH Industrial Capital LLC | ||||||||||
2.29%, 01/07/2020(c)(i) | 8,200,000 | 8,167,582 | ||||||||
2.29%, 01/13/2020(c)(i) | 15,000,000 | 14,929,290 | ||||||||
Coca-Cola Co. (The), 2.98%–3.00%, 12/11/2019(c)(i) | 14,000,000 | 13,973,963 | ||||||||
Dow Chemical Co. (The), 2.19%, 12/30/2019(i) | 1,331,000 | 1,326,375 | ||||||||
Enel Finance America LLC, 2.21%, 01/23/2020(c)(i) | 3,000,000 | 2,985,237 | ||||||||
Eni Finance USA, Inc., 2.11%, 01/22/2020(c)(i) | 6,650,000 | 6,619,167 | ||||||||
Entergy Corp. | ||||||||||
2.26%, 11/22/2019(c)(i) | 10,000,000 | 9,988,151 | ||||||||
2.14%, 01/23/2020(c)(i) | 15,000,000 | 14,925,485 | ||||||||
ETP Legacy L.P., 2.05%, 11/01/2019(c)(i) | 22,300,000 | 22,298,339 | ||||||||
Ford Motor Credit Co., LLC, 2.51%, 01/21/2020(c)(i) | 20,000,000 | 19,875,679 | ||||||||
Glencore Funding LLC | ||||||||||
2.24%, 11/01/2019(c)(i) | 13,500,000 | 13,499,241 | ||||||||
2.26%, 12/13/2019(c)(i) | 25,000,000 | 24,938,247 | ||||||||
Great Bridge Capital Co., LLC, 2.21%, 11/18/2019(c)(i) | 5,000,000 | 4,995,823 | ||||||||
Healthpeak Properties, Inc., 2.05%, 11/21/2019(c)(i) | 25,000,000 | 24,968,864 | ||||||||
Humana, Inc., 2.11%, | 21,000,000 | 20,918,651 | ||||||||
Hyundai Capital America, 2.24%, 12/06/2019(c)(i) | 9,142,000 | 9,123,487 | ||||||||
Jabil, Inc., 2.60%, 11/21/2019(c)(i). | 15,400,000 | 15,377,281 | ||||||||
Lloyds Bank PLC, 2.30% (1 mo. | ||||||||||
USD LIBOR + 0.45%), | 15,000,000 | 15,010,374 | ||||||||
Motiva Enterprises LLC, 2.15%, 11/01/2019(i) | 25,000,000 | 24,998,729 | ||||||||
Motorola Solutions, Inc. | ||||||||||
2.56%, 11/04/2019(i) | 10,000,000 | 9,997,736 | ||||||||
2.49%, 12/03/2019(i) | 10,000,000 | 9,981,437 | ||||||||
Reckitt Benckiser Treasury Services PLC | ||||||||||
2.49%, 12/03/2019(c)(i) | 10,000,000 | 9,983,912 | ||||||||
2.23%, 02/20/2020(c)(i) | 13,000,000 | 12,919,718 | ||||||||
2.13%, 06/23/2020(c)(i) | 9,000,000 | 8,867,427 |
Principal Amount | Value | |||||||||
Royal Caribbean Cruises Ltd. | ||||||||||
2.28%, 11/01/2019(c)(i) | $ | 10,000,000 | $ | 9,999,436 | ||||||
2.21%, 11/06/2019(c)(i) | 15,000,000 | 14,994,892 | ||||||||
2.25%–2.26%, 11/08/2019(c)(i) | 25,250,000 | 25,238,514 | ||||||||
Smithfield Foods, Inc. | ||||||||||
2.31%, 11/05/2019(c)(i) | 25,000,000 | 24,990,844 | ||||||||
2.30%, 11/06/2019(c)(i) | 10,500,000 | 10,495,404 | ||||||||
Vodafone Group PLC, 2.30%, 12/02/2019(c)(i) | 17,300,000 | 17,268,922 | ||||||||
VW Credit, Inc. | ||||||||||
2.68%, 11/04/2019(c)(i) | 10,000,000 | 9,997,736 | ||||||||
2.31%, 11/21/2019(c)(i) | 15,000,000 | 14,982,281 | ||||||||
White Plains Capital Co., LLC, | ||||||||||
2.38%, 02/20/2020(c)(i) | 20,000,000 | 19,886,942 | ||||||||
|
| |||||||||
Total Commercial Paper | 560,453,914 | |||||||||
|
| |||||||||
Repurchase Amount | ||||||||||
RepurchaseAgreements-4.65%(l) |
| |||||||||
Citigroup Global Markets, Inc., joint open agreement dated 04/11/2019 (collateralized by domestic and foreignnon-agency asset-backed securities, domestic and foreign corporate obligations and domestic mortgage-backed securities valued at $234,396,872; 0% - 7.53%; 12/01/2025 - 04/07/2052), | - | 25,000,000 | ||||||||
Citigroup Global Markets, Inc., joint open agreement dated 09/24/2019 (collateralized by foreign corporate obligations valued at $143,098,799; 0% - 8.25%; 04/22/2021 - 01/20/2050), | - | 10,000,000 | ||||||||
J.P. Morgan Securities LLC, open agreement dated 09/09/2019 (collateralized by domesticnon-agency mortgage-backed securities and foreignnon-agency asset-backed securities valued at $26,250,000; 1.09% - 6.62%; 12/15/2028 - 11/15/2050), | - | 25,000,000 | ||||||||
Nomura Securities International, Inc., joint term agreement dated 10/01/2019, aggregate maturing value of $53,000,000 (collateralized by domesticnon-agency mortgage-backed securities valued at $58,300,000; 6.44%; 03/25/2048), 2.70%, 04/28/2020(b) | 28,000,000 | 28,000,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
55 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Repurchase Amount | Value | |||||||||
Societe Generale, joint open agreement dated 08/06/2019 (collateralized by domesticnon-agency asset-backed securities, domestic and foreign corporate obligations and domestic commercial paper valued at $106,235,822; 0% - 10.50%; 11/19/2019 - 10/15/2093), 1.98%(m) | $ | - | $ | 17,000,000 | ||||||
Wells Fargo Securities, LLC, joint term agreement dated 07/08/2019, aggregate maturing value of $45,613,075 (collateralized by domestic and foreign agency andnon-agency asset-backed securities, domestic and foreign corporate obligations and a foreignnon-agency mortgage-backed security valued at $48,100,000; 0% - 8.42%; 01/17/2020 - 09/27/2066), 2.74%, 01/03/2020 | 17,231,606 | 17,000,000 | ||||||||
|
| |||||||||
Total Repurchase Agreements |
| 122,000,000 | ||||||||
|
| |||||||||
TOTAL INVESTMENTS IN SECURITIES |
| 2,638,888,269 | ||||||||
|
|
Investment Abbreviations: | ||
BR | -Bearer Shares | |
CLO | -Collateralized Loan Obligation | |
Ctfs. | -Certificates | |
JPY | -Japanese Yen | |
LIBOR | -London Interbank Offered Rate | |
REIT | -Real Estate Investment Trust | |
SOFR | -Secured Overnight Financing Rate | |
USD | -U.S. Dollar |
Shares | Value | |||||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||||
Money MarketFunds-0.05% | ||||||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.71%(n)(o) | 947,040 | $ | 947,040 | |||||||
Invesco Liquid Assets Portfolio, Institutional Class, 1.90%(n)(o) | 315,319 | 315,445 | ||||||||
|
| |||||||||
Total Investments Purchased with Cash Collateral from Securities on Loan |
| 1,262,485 | ||||||||
|
| |||||||||
TOTAL INVESTMENTS INSECURITIES-100.70% |
| 2,640,150,754 | ||||||||
OTHER ASSETS LESS LIABILITIES-(0.70)% |
| (18,366,438 | ) | |||||||
|
| |||||||||
NETASSETS-100.00% | $ | 2,621,784,316 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
56 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY)–(continued)
October 31, 2019
Notes to Schedule of Investments
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2019. |
(c) | 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, 2019 was $1,238,342,745, which represented 47.23% of the Fund’s Net Assets. |
(d) | All or a portion of this security was out on loan at October 31, 2019. |
(e) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2019. |
(f) | Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date. |
(g) | Foreign denominated security. Principal amount is denominated in the currency indicated. |
(h) | Security traded at a premium. |
(i) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(j) | Variable rate senior loan interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the variable rate senior loan interests will have an expected average life of three to five years. |
(k) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the LIBOR, on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(l) | Principal amount equals value at period end. See Note 2K. |
(m) | Either party may terminate the agreement upon demand. Interest rates, principal amount and collateral are redetermined daily. |
(n) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the7-day SEC standardized yield as of October 31, 2019. |
(o) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2M. |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||
Contract to | Appreciation | |||||||||||||||||||||||
Settlement Date | Counterparty | Deliver | Receive | (Depreciation) | ||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
11/5/2019 | Royal Bank of Canada | USD | 25,195,519 | JPY | 2,741,441,240 | $ | 163,542 | |||||||||||||||||
|
| |||||||||||||||||||||||
Subtotal–Appreciation | 163,542 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Currency Risk | ||||||||||||||||||||||||
1/8/2020 | Goldman Sachs International | JPY | 2,700,000,000 | USD | 25,049,705 | (49,816 | ) | |||||||||||||||||
1/8/2020 | Royal Bank of Canada | JPY | 2,740,000,000 | USD | 25,297,897 | (173,470 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
Subtotal–Depreciation | (223,286 | ) | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Total Forward Foreign Currency Contracts | $ | (59,744 | ) | |||||||||||||||||||||
|
|
Abbreviations:
JPY -Japanese Yen
USD-U.S. Dollar
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
57 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)
October 31, 2019
Schedule of Investments(a)
Principal Amount | Value | |||||||
U.S. Dollar Denominated Bonds &Notes-45.03% |
| |||||||
Aerospace &Defense-0.34% | ||||||||
Spirit AeroSystems, Inc., 2.92% (3 mo. USD LIBOR + 0.80%), 06/15/2021(b) | $ | 1,334,000 | $ | 1,330,800 | ||||
|
| |||||||
AutomobileManufacturers-4.34% | ||||||||
Daimler Finance North America LLC (Germany) | ||||||||
2.45% (3 mo. USD LIBOR + 0.55%), 05/04/2021(b)(c) | 2,000,000 | 2,001,080 | ||||||
3.06% (3 mo. USD LIBOR + 0.90%), 02/15/2022(b)(c) | 1,500,000 | 1,510,114 | ||||||
Fiat Chrysler Automobiles N.V. (United Kingdom), 4.50%, 04/15/2020 | 3,000,000 | 3,030,000 | ||||||
Ford Motor Credit Co. LLC | ||||||||
3.07% (3 mo. USD LIBOR + 0.93%), 09/24/2020(b) | 2,000,000 | 1,999,069 | ||||||
3.37% (3 mo. USD LIBOR + 1.27%), 03/28/2022(b) | 1,000,000 | 987,749 | ||||||
2.98% (3 mo. USD LIBOR + 1.08%), 08/03/2022(b) | 1,500,000 | 1,471,223 | ||||||
General Motors Financial Co., Inc. | ||||||||
3.34% (3 mo. USD LIBOR + 1.10%), 11/06/2021(b) | 2,000,000 | 2,005,094 | ||||||
3.41% (3 mo. USD LIBOR + 1.31%), 06/30/2022(b) | 1,000,000 | 1,004,296 | ||||||
3.03% (3 mo. USD LIBOR + 0.99%), 01/05/2023(b) | 1,000,000 | 991,500 | ||||||
Volkswagen Group of America Finance, LLC (Germany), 3.12% (3 mo. USD LIBOR + 0.94%), 11/12/2021(b)(c) | 2,000,000 | 2,012,411 | ||||||
|
| |||||||
17,012,536 | ||||||||
|
| |||||||
ConstructionMaterials-0.45% | ||||||||
Vulcan Materials Co. | ||||||||
2.72% (3 mo. USD LIBOR + 0.60%), 06/15/2020(b) | 750,000 | 750,769 | ||||||
2.78% (3 mo. USD LIBOR + 0.65%), 03/01/2021(b) | 1,000,000 | 1,002,615 | ||||||
|
| |||||||
1,753,384 | ||||||||
|
| |||||||
ConsumerFinance-1.22% | ||||||||
Capital One Financial Corp., 2.66% (3 mo. USD LIBOR + 0.72%), 01/30/2023(b) | 1,000,000 | 999,998 | ||||||
Capital One N.A., 3.09% (3 mo. USD LIBOR + 1.15%), 01/30/2023(b) | 3,750,000 | 3,783,588 | ||||||
|
| |||||||
4,783,586 | ||||||||
|
| |||||||
Distillers &Vintners-0.25% | ||||||||
Constellation Brands, Inc., 2.86% (3 mo. USD LIBOR + 0.70%), 11/15/2021(b) | 966,000 | 966,076 | ||||||
|
| |||||||
DiversifiedBanks-18.07% | ||||||||
ABN AMRO Bank N.V. (Netherlands), 2.70% (3 mo. USD LIBOR + 0.57%), | 964,000 | 968,181 | ||||||
Banco Santander S.A. (Spain), 3.54% (3 mo. USD LIBOR + 1.56%), 04/11/2022(b) | 5,200,000 | 5,290,307 |
Principal Amount | Value | |||||||
Diversified Banks-(continued) | ||||||||
Bank of America Corp. | ||||||||
2.94% (3 mo. USD LIBOR + 1.00%), 04/24/2023(b) | $ | 3,281,000 | $ | 3,316,302 | ||||
2.92% (3 mo. USD LIBOR + 0.79%), 03/05/2024(b) | 1,250,000 | 1,258,714 | ||||||
2.66% (3 mo. USD LIBOR + 0.77%), 02/05/2026(b) | 1,042,000 | 1,038,049 | ||||||
Barclays PLC (United Kingdom) | ||||||||
3.64% (3 mo. USD LIBOR + 1.63%), 01/10/2023(b) | 2,000,000 | 2,019,231 | ||||||
3.59% (3 mo. USD LIBOR + 1.43%), 02/15/2023(b) | 2,000,000 | 2,015,927 | ||||||
BPCE S.A. (France), 3.37% (3 mo. USD LIBOR + 1.22%), 05/22/2022(b)(c) | 4,000,000 | 4,052,048 | ||||||
Citigroup, Inc. | ||||||||
2.43% (SOFR + 0.87%), 11/04/2022(b) | 2,500,000 | 2,511,246 | ||||||
2.89% (3 mo. USD LIBOR + 0.95%), 07/24/2023(b) | 1,500,000 | 1,509,717 | ||||||
3.57% (3 mo. USD LIBOR + 1.43%), 09/01/2023(b) | 4,500,000 | 4,595,272 | ||||||
ING Groep N.V. (Netherlands), | 3,500,000 | 3,531,736 | ||||||
JPMorgan Chase & Co. | ||||||||
3.17% (3 mo. USD LIBOR + 1.23%), 10/24/2023(b) | 3,000,000 | 3,054,312 | ||||||
Series I, 5.41% (3 mo. USD LIBOR + 3.47%)(b)(d) | 978,000 | 986,298 | ||||||
Series V, 5.42% (3 mo. USD LIBOR + 3.32%)(b)(d) | 2,500,000 | 2,521,550 | ||||||
Lloyds Bank PLC (United Kingdom), | 1,957,000 | 1,960,550 | ||||||
Mizuho Financial Group, Inc. (Japan) | ||||||||
3.02% (3 mo. USD LIBOR + 0.88%), 09/11/2022(b) | 4,000,000 | 4,033,380 | ||||||
2.84% (3 mo. USD LIBOR + 0.84%), 07/16/2023(b) | 2,500,000 | 2,508,050 | ||||||
NatWest Markets PLC (United Kingdom), 3.50% (3 mo. USD LIBOR + 1.40%), 09/29/2022(b)(c) | 2,500,000 | 2,537,021 | ||||||
Nordea Bank Abp (Finland), 3.06% (3 mo. USD LIBOR + 0.94%), 08/30/2023(b)(c) | 2,987,000 | 2,982,461 | ||||||
Royal Bank of Scotland Group PLC (The) (United Kingdom) | ||||||||
3.63% (3 mo. USD LIBOR + 1.47%), 05/15/2023(b) | 4,000,000 | 4,034,109 | ||||||
3.66% (3 mo. USD LIBOR + 1.55%), 06/25/2024(b) | 2,000,000 | 2,013,578 | ||||||
Standard Chartered PLC (United Kingdom) | ||||||||
3.33% (3 mo. USD LIBOR + 1.20%), 09/10/2022(b)(c) | 1,667,000 | 1,678,719 | ||||||
3.12% (3 mo. USD LIBOR + 1.15%), 01/20/2023(b)(c) | 3,316,000 | 3,337,635 | ||||||
Sumitomo Mitsui Financial Group, Inc. (Japan), 2.74% (3 mo. USD LIBOR + 0.74%), 10/18/2022(b) | 3,500,000 | 3,514,554 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
58 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Diversified Banks-(continued) | ||||||||
USB Realty Corp., 3.15% (3 mo. USD LIBOR + 1.15%)(b)(c)(d) | $ | 1,100,000 | $ | 939,812 | ||||
Wells Fargo & Co., 3.47% (3 mo. USD LIBOR + 1.34%), 03/04/2021(b) | 2,500,000 | 2,535,211 | ||||||
|
| |||||||
70,743,970 | ||||||||
|
| |||||||
Diversified CapitalMarkets-0.90% | ||||||||
UBS Group Funding Switzerland AG (Switzerland), 3.11% (3 mo. USD LIBOR + 0.95%), 08/15/2023(b)(c) | 3,500,000 | 3,521,361 | ||||||
|
| |||||||
ElectricUtilities-0.64% | ||||||||
Mississippi Power Co., 2.75% (3 mo. USD LIBOR + 0.65%), 03/27/2020(b) | 2,500,000 | 2,500,995 | ||||||
|
| |||||||
Health CareDistributors-1.02% | ||||||||
Cardinal Health, Inc., 2.89% (3 mo. USD LIBOR + 0.77%), 06/15/2022(b) | 4,000,000 | 4,015,285 | ||||||
|
| |||||||
Health CareEquipment-1.09% | ||||||||
Becton, Dickinson and Co., 3.14% (3 mo. USD LIBOR + 1.03%), 06/06/2022(b) | 4,225,000 | 4,259,429 | ||||||
|
| |||||||
Health CareServices-1.12% | ||||||||
Cigna Corp., 2.89% (3 mo. USD LIBOR + 0.89%), 07/15/2023(b) | 3,543,000 | 3,557,855 | ||||||
CVS Health Corp., 2.82% (3 mo. USD LIBOR + 0.72%), 03/09/2021(b) | 839,000 | 843,854 | ||||||
|
| |||||||
4,401,709 | ||||||||
|
| |||||||
HouseholdProducts-0.70% | ||||||||
Reckitt Benckiser Treasury Services PLC (United Kingdom), 2.70% (3 mo. USD LIBOR + 0.56%), 06/24/2022(b)(c) | 2,750,000 | 2,756,917 | ||||||
|
| |||||||
Integrated Oil &Gas-0.26% | ||||||||
Occidental Petroleum Corp., 3.44% (3 mo. USD LIBOR + 1.25%), 08/13/2021(b) | 1,000,000 | 1,006,445 | ||||||
|
| |||||||
Integrated TelecommunicationServices-2.10% |
| |||||||
AT&T, Inc. | ||||||||
3.07% (3 mo. USD LIBOR + 0.89%), 02/15/2023(b) | 2,669,000 | 2,678,469 | ||||||
3.31% (3 mo. USD LIBOR + 1.18%), 06/12/2024(b) | 3,832,000 | 3,901,180 | ||||||
Verizon Communications, Inc., 3.26% (3 mo. USD LIBOR + 1.10%), 05/15/2025(b) | 1,627,000 | 1,656,278 | ||||||
|
| |||||||
8,235,927 | ||||||||
|
| |||||||
Interactive Media &Services-0.29% | ||||||||
Tencent Holdings Ltd. (China), 2.57% (3 mo. USD LIBOR + 0.61%), | 1,143,000 | 1,136,265 | ||||||
|
| |||||||
Investment Banking &Brokerage-3.17% | ||||||||
Goldman Sachs Group, Inc. (The) | ||||||||
2.94% (3 mo. USD LIBOR + 1.00%), 07/24/2023(b) | 4,500,000 | 4,532,525 | ||||||
3.69% (3 mo. USD LIBOR + 1.75%), 10/28/2027(b) | 250,000 | 262,843 |
Principal Amount | Value | |||||||
Investment Banking & Brokerage-(continued) |
| |||||||
Morgan Stanley | ||||||||
3.37% (3 mo. USD LIBOR + 1.40%), 04/21/2021(b) | $ | 2,500,000 | $ | 2,540,840 | ||||
2.88% (3 mo. USD LIBOR + 0.93%), 07/22/2022(b) | 2,500,000 | 2,523,162 | ||||||
3.34% (3 mo. USD LIBOR + 1.40%), 10/24/2023(b) | 2,500,000 | 2,551,723 | ||||||
|
| |||||||
12,411,093 | ||||||||
|
| |||||||
IT Consulting & OtherServices-0.71% | ||||||||
DXC Technology Co., 3.08% (3 mo. USD LIBOR + 0.95%), 03/01/2021(b) | 2,802,000 | 2,802,037 | ||||||
|
| |||||||
Life & HealthInsurance-0.26% | ||||||||
Jackson National Life Global Funding, 2.83% (3 mo. USD LIBOR + 0.73%), | 1,000,000 | 1,010,415 | ||||||
|
| |||||||
Multi-lineInsurance-0.23% | ||||||||
Metropolitan Life Global Funding I, 2.13% (SOFR + 0.57%), 09/07/2020(b)(c) | 899,000 | 901,267 | ||||||
|
| |||||||
Multi-Utilities-0.68% | ||||||||
Sempra Energy, 2.50% (3 mo. USD LIBOR + 0.50%), 01/15/2021(b) | 2,650,000 | 2,648,762 | ||||||
|
| |||||||
Oil & Gas Exploration &Production-0.39% | ||||||||
ConocoPhillips Co., 3.06% (3 mo. USD LIBOR + 0.90%), 05/15/2022(b) | 1,500,000 | 1,521,830 | ||||||
|
| |||||||
Oil & Gas Refining &Marketing-0.09% | ||||||||
Phillips 66, 2.73% (3 mo. USD LIBOR + 0.60%), 02/26/2021(b) | 340,000 | 340,049 | ||||||
|
| |||||||
Oil & Gas Storage &Transportation-0.17% | ||||||||
MPLX L.P., 3.20% (3 mo. USD LIBOR + 1.10%), 09/09/2022(b) | 664,000 | 666,501 | ||||||
|
| |||||||
Other Diversified FinancialServices-1.83% | ||||||||
Athene Global Funding, 3.32% (3 mo. USD LIBOR + 1.23%), 07/01/2022(b)(c) | 5,300,000 | 5,368,672 | ||||||
Aviation Capital Group LLC, 3.08% (3 mo. USD LIBOR + 0.95%), 06/01/2021(b)(c) | 1,777,000 | 1,781,162 | ||||||
|
| |||||||
7,149,834 | ||||||||
|
| |||||||
Packaged Foods &Meats-1.78% | ||||||||
Conagra Brands, Inc., 2.70% (3 mo. USD LIBOR + 0.75%), 10/22/2020(b) | 3,000,000 | 3,000,276 | ||||||
General Mills, Inc., 3.01% (3 mo. USD LIBOR + 1.01%), 10/17/2023(b) | 3,937,000 | 3,970,488 | ||||||
|
| |||||||
6,970,764 | ||||||||
|
| |||||||
Pharmaceuticals-0.87% | ||||||||
Bayer US Finance II LLC (Germany), 2.74% (3 mo. USD LIBOR + 0.63%), | 3,395,000 | 3,404,908 | ||||||
|
| |||||||
RegionalBanks-0.49% | ||||||||
KeyBank N.A., 2.57% (3 mo. USD LIBOR + 0.66%), 02/01/2022(b) | 1,923,000 | 1,934,564 | ||||||
|
| |||||||
SpecialtyChemicals-0.26% | ||||||||
DuPont de Nemours, Inc., 2.87% (3 mo. USD LIBOR + 0.71%), 11/15/2020(b) | 1,000,000 | 1,004,833 | ||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
59 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Technology Hardware, Storage &Peripherals-0.52% |
| |||||||
Dell International LLC/EMC Corp., 5.88%, 06/15/2021(c) | $ | 1,986,000 | $ | 2,019,027 | ||||
|
| |||||||
Trading Companies &Distributors-0.79% |
| |||||||
BOC Aviation Ltd. (Singapore), 3.24% (3 mo. USD LIBOR + 1.13%), | 3,082,000 | 3,103,871 | ||||||
|
| |||||||
Total U.S. Dollar Denominated Bonds & Notes (Cost $175,575,364) | 176,314,440 | |||||||
|
| |||||||
Asset-BackedSecurities-19.12% |
| |||||||
Adjustable Rate Mortgage Trust, Series2004-2, Class 6A1, 4.25%, | 274,499 | 281,286 | ||||||
BAMLL Commercial Mortgage Securities Trust, Series2019-RLJ, Class B, 3.26% (1 mo. USD LIBOR + 1.35%), 04/15/2036(b)(c) | 4,000,000 | 4,001,640 | ||||||
Bear Stearns ARM Trust | ||||||||
Series2003-7, Class 6A, 4.23%, 10/25/2033(e) | 327,950 | 338,358 | ||||||
Series2003-8, Class 4A1, 4.56%, 01/25/2034(e) | 260,424 | 271,204 | ||||||
BFLD Trust, Series 2019-DPLO, Class A, 3.00% (1 mo. USD LIBOR + 1.09%), 10/15/2034(b)(c) | 1,500,000 | 1,499,357 | ||||||
BX Trust, Series2018-GW, Class A, 2.71% (1 mo. USD LIBOR + 0.80%), 05/15/2035(b)(c) | 4,500,000 | 4,498,378 | ||||||
Capital One Multi-Asset Execution Trust, Series2016-A2, Class A2, 2.55% (1 mo. USD LIBOR + 0.63%), | 250,000 | 251,532 | ||||||
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, 2.70% (1 mo. USD LIBOR + 0.79%), | 1,350,000 | 1,350,778 | ||||||
CLNS Trust, Series 2017-IKPR, Class A, 2.73% (1 mo. USD LIBOR + 0.80%), 06/11/2032(b)(c) | 3,000,000 | 2,998,848 | ||||||
Commercial Mortgage Trust | ||||||||
Series2014-FL5, Class B, 3.41% (1 mo. USD LIBOR + 2.15%), | 122,402 | 122,450 | ||||||
Series 2019-521F, Class C, 3.22% (1 mo. USD LIBOR + 1.30%), | 3,000,000 | 3,003,597 | ||||||
Commonbond Student Loan Trust | ||||||||
Series2017-BGS, Class A2, 2.47% (1 mo. USD LIBOR + 0.65%), | 1,215,977 | 1,209,574 | ||||||
Series2018-AGS, Class A2, 2.32% (1 mo. USD LIBOR + 0.50%), | 2,365,676 | 2,314,766 | ||||||
Credit Suisse Mortgage Capital Ctfs., Series 2019-ICE4, Class B, 3.14% (1 mo. USD LIBOR + 1.23%), | 4,000,000 | 4,010,866 | ||||||
CSWF, Series2018-TOP, Class B, 3.21% (1 mo. USD LIBOR + 1.30%), 08/15/2035(b)(c) | 3,000,000 | 3,004,967 | ||||||
DBGS Mortgage Trust, Series2018-5BP, Class B, 2.74% (1 mo. USD LIBOR + 0.83%), 06/15/2033(b)(c) | 3,000,000 | 2,995,227 | ||||||
Deephaven Residential Mortgage Trust, Series2019-2A, Class A1, 3.56%, 04/25/2059(c)(e) | 850,166 | 858,008 |
Principal Amount | Value | |||||||
Domino’s Pizza Master Issuer LLC, Series2017-1A, Class A2I, 3.53% (3 mo. USD LIBOR + 1.25%), 07/25/2047(b)(c) | $ | 3,170,300 | $ | 3,172,679 | ||||
Edsouth Indenture No. 9 LLC, Series2015-1, Class A, 2.62% (1 mo. USD LIBOR + 0.80%), 10/25/2056(b)(c) | 762,823 | 757,246 | ||||||
GPT Mortgage Trust, Series2018-GPP, Class B, 3.19% (1 mo. USD LIBOR + 1.28%), 06/15/2035(b)(c) | 1,500,000 | 1,496,778 | ||||||
Hertz Vehicle Financing II L.P., Series 2017-1A, Class B, 3.56%, 10/25/2021(c) | 320,000 | 322,640 | ||||||
Home Equity Asset Trust, Series2004-5, Class M2, 2.77% (1 mo. USD LIBOR + 0.95%), 11/25/2034(b) | 1,106,896 | 1,114,353 | ||||||
Home Partners of America Trust | ||||||||
Series2017-1, Class A, 2.71% (1 mo. USD LIBOR + 0.82%), 07/17/2034(b)(c) | 1,654,074 | 1,654,226 | ||||||
Series2018-1, Class B, 2.99% (1 mo. USD LIBOR + 1.10%), 07/17/2037(b)(c) | 1,760,000 | 1,750,626 | ||||||
Invitation Homes Trust | ||||||||
Series 2017-SFR2, Class A, 2.74% (1 mo. USD LIBOR + 0.85%), 12/17/2036(b)(c) | 1,877,856 | 1,877,764 | ||||||
Series 2017-SFR2, Class C, 3.34% (1 mo. USD LIBOR + 1.45%), 12/17/2036(b)(c) | 5,620,000 | 5,627,895 | ||||||
Series 2018-SFR1, Class B, 2.84% (1 mo. USD LIBOR + 0.95%), 03/17/2037(b)(c) | 1,000,000 | 990,343 | ||||||
Series 2018-SFR4, Class C, 3.29% (1 mo. USD LIBOR + 1.40%), 01/17/2038(b)(c) | 3,000,000 | 3,002,075 | ||||||
Merrill Lynch Mortgage Investors Trust | ||||||||
Series2003-F, Class A1, 2.46% (1 mo. USD LIBOR + 0.64%), 10/25/2028(b) | 257,182 | 259,055 | ||||||
Series2005-A2, Class A5, 4.43%, 02/25/2035(e) | 99,387 | 101,395 | ||||||
Morgan Stanley Capital I Trust, Series 2017- CLS, Class B, 2.76% (1 mo. USD LIBOR + 0.85%), 11/15/2034(b)(c) | 2,200,000 | 2,201,613 | ||||||
OBX Trust | ||||||||
Series 2018-EXP1, Class 2A1, 2.67% (1 mo. USD LIBOR + 0.85%), 04/25/2048(b)(c) | 3,129,601 | 3,135,701 | ||||||
Series 2018-EXP2, Class 2A2, 2.77% (1 mo. USD LIBOR + 0.95%), 11/25/2048(b)(c) | 2,625,502 | 2,635,081 | ||||||
Series 2019-EXP1, Class 2A2, 2.97% (1 mo. USD LIBOR + 1.15%), 01/25/2059(b)(c) | 1,102,534 | 1,102,126 | ||||||
Series 2019-EXP2, Class 2A2, 3.02% (1 mo. USD LIBOR + 1.20%), 06/25/2059(b)(c) | 2,320,694 | 2,330,988 | ||||||
Pennsylvania Higher Education Assistance Agency, Series2009-2, Class A2, 3.04% (3 mo. USD LIBOR + 1.10%), 01/25/2028(b) | 967,723 | 970,974 | ||||||
Residential Mortgage Loan Trust, Series2019-1, Class M1, 3.94%, 10/25/2058(c)(e) | 1,453,045 | 1,476,586 | ||||||
Rosslyn Portfolio Trust, Series 2017-ROSS, Class B, 3.16% (1 mo. USD LIBOR + 1.25%), 06/15/2033(b)(c) | 1,000,000 | 999,572 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
60 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
SMB Private Education Loan Trust, Series2015-B, Class A3, 3.66% (1 mo. USD LIBOR + 1.75%), 05/17/2032(b)(c) | $ | 2,380,000 | $ | 2,415,152 | ||||
Stonemont Portfolio Trust, Series 2017- MONT, Class A, 2.70% (1 mo. USD LIBOR + 0.85%), 08/20/2030(b)(c) | 874,331 | 874,578 | ||||||
Tharaldson Hotel Portfolio Trust, Series2018-THL, Class A, 2.74% (1 mo. USD LIBOR + 0.75%), 11/11/2034(b)(c) | 1,215,120 | 1,215,222 | ||||||
WaMu Mortgage Pass-Through Certificates Trust, Series2004-AR3, Class A2, 4.50%, 06/25/2034(e) | 126,703 | 131,217 | ||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR12, Class 1A, 5.03%, 05/25/2035(e) | 208,415 | 216,668 | ||||||
|
| |||||||
Total Asset-Backed Securities | 74,843,389 | |||||||
|
| |||||||
Agency Credit Risk TransferNotes-14.73% |
| |||||||
Fannie Mae Connecticut Avenue Securities | ||||||||
Series2014-C03, Class 1M2, 4.82% (1 mo. USD LIBOR + 3.00%), 07/25/2024(b)(f) | 6,204,892 | 6,520,386 | ||||||
Series2014-C03, Class 2M2, 4.72% (1 mo. USD LIBOR + 2.90%), 07/25/2024(b)(f) | 3,656,232 | 3,802,559 | ||||||
Series2015-C02, Class 2M2, 5.82% (1 mo. USD LIBOR + 4.00%), 05/25/2025(b)(f) | 1,014,521 | 1,055,594 | ||||||
Series CAS2014-C02, Class 2M2, 4.42% (1 mo. USD LIBOR + 2.60%), | 3,261,953 | 3,374,947 | ||||||
Series CAS2016-C02, Class 1M2, 7.82% (1 mo. USD LIBOR + 6.00%), | 2,602,421 | 2,840,598 | ||||||
Freddie Mac | ||||||||
Series2014-DN1, Class M2, STACR®, 4.02% (1 mo. USD LIBOR + 2.20%), 02/25/2024(b)(g) | 2,579,617 | 2,609,414 | ||||||
Series2014-DN2, Class M2, STACR®, 3.47% (1 mo. USD LIBOR + 1.65%), 04/25/2024(b)(g) | 423,114 | 424,622 | ||||||
Series2014-HQ2, Class M2, STACR®, 4.02% (1 mo. USD LIBOR + 2.20%), 09/25/2024(b)(g) | 4,040,454 | 4,092,316 | ||||||
Series 2015-DNA3, Class M2, STACR®, 4.67% (1 mo. USD LIBOR + 2.85%), 04/25/2028(b)(g) | 5,616,640 | 5,678,762 | ||||||
Series2015-HQ2, Class M2, STACR®, 3.77% (1 mo. USD LIBOR + 1.95%), 05/25/2025(b)(g) | 5,451,689 | 5,496,275 | ||||||
Series 2016-DNA1, Class M2, STACR®, 4.72% (1 mo. USD LIBOR + 2.90%), 07/25/2028(b)(g) | 3,940,067 | 3,964,597 | ||||||
Series 2016-DNA4, Class M2, STACR®, 3.12% (1 mo. USD LIBOR + 1.30%), 03/25/2029(b)(g) | 1,674,921 | 1,679,542 |
Principal Amount | Value | |||||||
Series 2016-HQA1, Class M2, STACR®, 4.57% (1 mo. USD LIBOR + 2.75%), 09/25/2028(b)(g) | $ | 584,229 | $ | 586,573 | ||||
Series 2016-HQA3, Class M2, STACR®, 3.17% (1 mo. USD LIBOR + 1.35%), 03/25/2029(b)(g) | 6,753,330 | 6,767,139 | ||||||
Series 2016-HQA4, Class M2, STACR®, 3.12% (1 mo. USD LIBOR + 1.30%), 04/25/2029(b)(g) | 2,295,691 | 2,303,758 | ||||||
Series 2017-HQA1, Class M1, STACR®, 3.02% (1 mo. USD LIBOR + 1.20%), 08/25/2029(b)(g) | 436,796 | 437,465 | ||||||
Series 2018-HQA1, Class M2, STACR®, 4.12% (1 mo. USD LIBOR + 2.30%), 09/25/2030(b)(g) | 3,000,000 | 3,025,360 | ||||||
Series 2018-HRP2, Class M2, STACR®, 3.07% (1 mo. USD LIBOR + 1.25%), 02/25/2047(b)(c)(g) | 3,000,000 | 3,006,131 | ||||||
|
| |||||||
Total Agency Credit Risk Transfer Notes | 57,666,038 | |||||||
|
| |||||||
U.S. TreasurySecurities-8.20% | ||||||||
U.S. TreasuryNotes-8.20% | ||||||||
1.67% (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.14%), 04/30/2021(b) | 17,100,000 | 17,080,588 | ||||||
1.75% (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.22%), 07/31/2021(b) | 15,000,000 | 15,000,321 | ||||||
|
| |||||||
Total U.S. Treasury Securities | 32,080,909 | |||||||
|
| |||||||
U.S. Government Sponsored Agency Mortgage-BackedSecurities-7.76% |
| |||||||
Collateralized MortgageObligations-6.55% | ||||||||
Fannie Mae REMICs | ||||||||
Series2011-127, Class FJ, 2.17% (1 mo. USD LIBOR + 0.35%), 09/25/2041(b) | 126,256 | 126,440 | ||||||
Series2014-92, Class FB, 2.42% (1 mo. USD LIBOR + 0.32%), 01/25/2045(b) | 1,635,369 | 1,627,250 | ||||||
Series2016-25, Class FL, 2.32% (1 mo. USD LIBOR + 0.50%), 05/25/2046(b) | 458,228 | 458,470 | ||||||
Series2017-100, Class FM, 2.42% (1 mo. USD LIBOR + 0.32%), 12/25/2047(b) | 552,968 | 550,411 | ||||||
Series2017-68, Class AF, 2.40% (1 mo. USD LIBOR + 0.30%), 09/25/2047(b) | 1,588,980 | 1,579,692 | ||||||
Freddie Mac Multifamily Structured Pass Through Ctfs. | ||||||||
2.52% (1 mo. USD LIBOR + 0.50%), 07/25/2023(b) | 1,325,459 | 1,325,380 | ||||||
2.50% (1 mo. USD LIBOR + 0.48%), 04/25/2026(b) | 2,000,000 | 2,001,676 | ||||||
2.54% (1 mo. USD LIBOR + 0.52%), 07/25/2029(b) | 3,500,000 | 3,528,885 | ||||||
SeriesK-F17, Class A, 2.57% (1 mo. USD LIBOR + 0.55%), 03/25/2023(b) | 2,485,523 | 2,487,441 | ||||||
Series Q008, Class A, 2.41% (1 mo. USD LIBOR + 0.39%), 10/25/2045(b) | 4,329,814 | 4,337,415 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
61 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)–(continued)
October 31, 2019
Principal Amount | Value | |||||||
Collateralized Mortgage Obligations-(continued) |
| |||||||
Freddie Mac REMICs | ||||||||
Series 331, Class AF, 2.32% (1 mo. USD LIBOR + 0.40%), 06/15/2037(b) | $ | 1,355,841 | $ | 1,350,580 | ||||
Series 4091, Class JF, 2.42% (1 mo. USD LIBOR + 0.50%), 06/15/2041(b) | 354,331 | 355,617 | ||||||
Series 4547, Class FA, 2.55% (1 mo. USD LIBOR + 0.45%), 09/15/2040(b) | 1,330,987 | 1,332,857 | ||||||
Series 4683, Class FA, 2.45% (1 mo. USD LIBOR + 0.35%), 09/15/2038(b) | 1,666,290 | 1,668,518 | ||||||
Series 4770, Class FA, 2.42% (1 mo. USD LIBOR + 0.32%), 08/15/2043(b) | 1,651,312 | 1,651,447 | ||||||
Freddie Mac STRIPS, Series 350, Class F2, 2.45% (1 mo. USD LIBOR + 0.35%), 09/15/2040(b) | 1,251,422 | 1,245,675 | ||||||
|
| |||||||
25,627,754 | ||||||||
|
| |||||||
Federal Home Loan Mortgage Corp.(FHLMC)-0.44% |
| |||||||
ARM, 4.63% (1 yr. USD LIBOR + 1.59%), 06/01/2037(b) | 344,979 | 361,710 | ||||||
ARM, 4.47% (1 yr. USD LIBOR + 1.74%), 11/01/2038(b) | 700,423 | 737,252 | ||||||
ARM, 4.51% (1 yr. USD LIBOR + 1.73%), 03/01/2043(b) | 617,378 | 642,388 | ||||||
|
| |||||||
1,741,350 | ||||||||
|
| |||||||
Federal National Mortgage Association(FNMA)-0.77% |
| |||||||
ARM, 4.77% (1 yr. USD LIBOR + 1.64%), 02/01/2035(b) | 58,970 | 59,046 | ||||||
ARM, 4.15% (6 mo. USD LIBOR + 1.57%), 07/01/2035(b) | 112,163 | 116,309 | ||||||
ARM, 4.72% (1 yr. U.S. Treasury Yield Curve Rate + 2.35%), 07/01/2035(b) | 1,417,451 | 1,506,998 | ||||||
ARM, 4.00% (1 yr. USD LIBOR + 1.79%), 10/01/2036(b) | 529,736 | 556,878 |
Principal Amount | Value | |||||||
Federal National Mortgage Association (FNMA)-(continued) |
| |||||||
ARM, 4.78% (1 yr. USD LIBOR + 1.78%), 03/01/2037(b) | $ | 230,431 | $ | 239,980 | ||||
ARM, 4.55% (1 yr. USD LIBOR + 1.62%), 11/01/2037(b) | 517,195 | 543,425 | ||||||
|
| |||||||
3,022,636 | ||||||||
|
| |||||||
Total U.S. Government Sponsored Agency Mortgage- Backed Securities |
| 30,391,740 | ||||||
|
| |||||||
Shares | ||||||||
Exchange-TradedFunds-1.97% | ||||||||
Invesco Variable Rate Preferred ETF(h) | 300,000 | 7,719,000 | ||||||
|
| |||||||
Principal Amount | ||||||||
CommercialPaper-2.55%(i) | ||||||||
Glencore Funding LLC, 2.28%, 11/04/2019(c) | $ | 10,000,000 | 9,997,750 | |||||
|
| |||||||
Shares | ||||||||
Money MarketFunds-1.06% | ||||||||
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.67%(j) | 4,141,764 | 4,141,764 | ||||||
|
| |||||||
TOTAL INVESTMENTS INSECURITIES-100.42% |
| 393,155,030 | ||||||
OTHER ASSETS LESS LIABILITIES-(0.42)% |
| (1,628,236 | ) | |||||
|
| |||||||
NETASSETS-100.00%. |
| $ | 391,526,794 | |||||
|
|
Investment Abbreviations: | ||
ARM | -Adjustable Rate Mortgage | |
CAS | -Connecticut Avenue Securities | |
Ctfs. | -Certificates | |
ETF | -Exchange-Traded Fund | |
LIBOR | -London Interbank Offered Rate | |
REMICs | -Real Estate Mortgage Investment Conduits | |
SOFR | -Secured Overnight Financing Rate | |
STACR® | -Structured Agency Credit Risk | |
STRIPS | -Separately Traded Registered Interest and Principal Security | |
USD | -U.S. Dollar |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
62 | ||||
|
| |||
Invesco Variable Rate Investment Grade ETF (VRIG)–(continued)
October 31, 2019
Notes to Schedule of Investments
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on October 31, 2019. |
(c) | 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, 2019 was $130,934,575, which represented 33.44% of the Fund’s Net Assets. |
(d) | Perpetual bond with no specified maturity date. |
(e) | Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on October 31, 2019. |
(f) | CAS notes are bonds issued by Fannie Mae. The amount of periodic principal and ultimate principal paid by Fannie Mae is determined by the performance of a large and diverse reference pool. |
(g) | Principal payments are determined by the delinquency and principal payment experience on the STACR® reference pool. Freddie Mac transfers credit risk from the mortgages in the reference pool to credit investors who invest in the STACR® debt notes. |
(h) | The security and the Fund are affiliated by having the same investment adviser. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates (excluding affiliated money market funds) for the fiscal year ended October 31, 2019. |
Value October 31, 2018 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value October 31, 2019 | Dividend Income | ||||||||||||||||||||||
Invesco Variable Rate Preferred ETF | $- | $10,995,360 | $(3,550,335) | $243,000 | $30,975 | $7,719,000 | $197,000 |
(i) | Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund. |
(j) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the7-day SEC standardized yield as of October 31, 2019. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
63 | ||||
|
| |||
Statements of Assets and Liabilities
October 31, 2019
Invesco Active U.S. Real Estate ETF (PSR) | Invesco Balanced Multi-Asset Allocation ETF (PSMB) | Invesco Conservative Multi-Asset Allocation ETF (PSMC) | Invesco Growth Multi-Asset Allocation ETF (PSMG) | Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Unaffiliated investments in securities, at value(a) | $ | 121,520,039 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Affiliated investments in securities, at value(a) | 1,259,344 | 5,469,303 | 4,996,160 | 5,368,422 | 6,566,413 | ||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding | - | - | - | - | - | ||||||||||||||||||||
Unrealized appreciation on futures contracts | - | - | - | - | - | ||||||||||||||||||||
Cash | - | - | - | - | - | ||||||||||||||||||||
Foreign currencies, at value | - | - | - | - | - | ||||||||||||||||||||
Deposits with brokers: | |||||||||||||||||||||||||
Cash collateral-futures contracts | - | - | - | - | - | ||||||||||||||||||||
Receivable for: | |||||||||||||||||||||||||
Dividends and interest | 57,234 | 2 | 3 | 3 | 3 | ||||||||||||||||||||
Securities lending | - | 2,444 | 1,019 | 1,816 | 1,726 | ||||||||||||||||||||
Investments sold | - | - | - | - | |||||||||||||||||||||
Fund shares sold | - | - | - | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total assets | 122,836,617 | 5,471,749 | 4,997,182 | 5,370,241 | 6,568,142 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding | - | - | - | - | - | ||||||||||||||||||||
Unrealized depreciation on futures contracts | - | - | - | - | - | ||||||||||||||||||||
Payable for: | |||||||||||||||||||||||||
Variation margin on futures contracts | - | - | - | - | - | ||||||||||||||||||||
Investments purchased | - | - | - | - | - | ||||||||||||||||||||
Collateral upon return of securities loaned | 1,247,631 | 1,222,868 | 1,089,525 | 967,685 | 1,049,088 | ||||||||||||||||||||
Accrued unitary management fees | 34,694 | 179 | 164 | 184 | 232 | ||||||||||||||||||||
Accrued advisory fees | - | - | - | - | |||||||||||||||||||||
Accrued trustees’ and officer’s fees | - | - | - | - | |||||||||||||||||||||
Accrued expenses | 2,746 | 2,325 | 2,324 | 2,336 | 2,334 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total liabilities | 1,285,071 | 1,225,372 | 1,092,013 | 970,205 | 1,051,654 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net Assets | $ | 121,551,546 | $ | 4,246,377 | $ | 3,905,169 | $ | 4,400,036 | $ | 5,516,488 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net assets consist of: | |||||||||||||||||||||||||
Shares of beneficial interest | $ | 115,492,974 | $ | 4,065,583 | $ | 3,719,446 | $ | 4,104,244 | $ | 5,157,559 | |||||||||||||||
Distributable earnings (loss) | 6,058,572 | 180,794 | 185,723 | 295,792 | 358,929 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net Assets | $ | 121,551,546 | $ | 4,246,377 | $ | 3,905,169 | $ | 4,400,036 | $ | 5,516,488 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,250,000 | 300,001 | 300,001 | 300,001 | 400,001 | ||||||||||||||||||||
Net asset value | $ | 97.24 | $ | 14.15 | $ | 13.02 | $ | 14.67 | $ | 13.79 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Market price | $ | 97.13 | $ | 14.17 | $ | 13.04 | $ | 14.69 | $ | 13.82 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Unaffiliated investments in securities, at cost | $ | 114,951,623 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Affiliated investments in securities, at cost | $ | 1,259,344 | $ | 5,434,649 | $ | 4,912,299 | $ | 5,222,239 | $ | 6,382,300 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Foreign currencies, at cost | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
(a)Includes securities on loan with an aggregate value of: | $ | 1,227,835 | $ | 1,190,403 | $ | 1,058,556 | $ | 944,394 | $ | 1,020,076 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
64 | ||||
|
| |||
Invesco S&P 500® Downside Hedged ETF (PHDG) | Invesco Total Return Bond ETF (GTO) | Invesco Ultra Short Duration ETF (GSY) | Invesco Variable Rate Investment Grade ETF (VRIG) | |||||||||||||||
$ | 15,519,075 | $ | 177,751,729 | $ | 2,638,888,269 | $ | 381,294,266 | |||||||||||
1,852,924 | - | 1,262,485 | 11,860,764 | |||||||||||||||
| - | 133 | 163,542 | - | ||||||||||||||
65,182 | - | - | - | |||||||||||||||
- | 12,881,944 | 70,907 | 3,019,655 | |||||||||||||||
- | 286,531 | - | - | |||||||||||||||
2,636,112 | - | - | - | |||||||||||||||
14,919 | 691,751 | 8,890,717 | 873,494 | |||||||||||||||
3 | - | 212 | - | |||||||||||||||
- | 14,463,958 | 215,213 | 87,175 | |||||||||||||||
- | 5,440,198 | 10,083,787 | - | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
20,088,215 | 211,516,244 | 2,659,575,132 | 397,135,354 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
- | - | | 223,286 | - | ||||||||||||||
29,734 | - | - | - | |||||||||||||||
- | 154,022 | - | - | |||||||||||||||
- | 34,523,938 | 35,303,673 | 5,519,656 | |||||||||||||||
12,162 | - | 1,262,485 | - | |||||||||||||||
6,358 | 52,712 | - | 83,700 | |||||||||||||||
- | - | 438,657 | - | |||||||||||||||
- | - | 15,029 | - | |||||||||||||||
2,568 | 2,787 | 547,686 | 5,204 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
50,822 | 34,733,459 | 37,790,816 | 5,608,560 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 20,037,393 | $ | 176,782,785 | $ | 2,621,784,316 | $ | 391,526,794 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 98,067,278 | $ | 172,393,362 | $ | 2,609,321,934 | $ | 395,340,075 | |||||||||||
(78,029,885 | ) | 4,389,423 | 12,462,382 | (3,813,281 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 20,037,393 | $ | 176,782,785 | $ | 2,621,784,316 | $ | 391,526,794 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
| 750,000 | 3,250,000 | 52,000,000 | 15,700,001 | ||||||||||||||
$ | 26.72 | $ | 54.39 | $ | 50.42 | $ | 24.94 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 26.65 | $ | 54.43 | $ | 50.42 | $ | 24.95 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 14,917,513 | $ | 173,921,077 | $ | 2,628,122,884 | $ | 381,118,944 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 1,859,861 | $ | - | $ | 1,262,485 | $ | 11,617,764 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | - | $ | 282,830 | $ | - | $ | - | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
$ | 11,824 | $ | - | $ | 1,226,784 | $ | - | |||||||||||
|
|
|
|
|
|
|
|
65 | ||||
|
| |||
Statements of Operations
For the year ended October 31, 2019
Invesco Active U.S. Real Estate ETF (PSR) | Invesco Balanced Multi-Asset Allocation ETF (PSMB) | Invesco Conservative Multi-Asset Allocation ETF (PSMC) | Invesco Growth Multi-Asset Allocation ETF (PSMG) | |||||||||||||||||
Investment income: | ||||||||||||||||||||
Unaffiliated interest income | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Unaffiliated dividend income | 1,595,943 | - | - | - | ||||||||||||||||
Affiliated dividend income | 1,158 | 96,925 | 168,883 | 101,900 | ||||||||||||||||
Securities lending income | 103 | 23,156 | 26,481 | 17,555 | ||||||||||||||||
Foreign withholding tax | - | - | - | - | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total investment income | 1,597,204 | 120,081 | 195,364 | 119,455 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Expenses: | ||||||||||||||||||||
Unitary management fees | 202,975 | 2,061 | 2,648 | 2,127 | ||||||||||||||||
Advisory fees | - | - | - | - | ||||||||||||||||
Accounting & administration fees | - | - | - | - | ||||||||||||||||
Custodian & transfer agent fees | - | - | - | - | ||||||||||||||||
Trustees’ and officer’s fees | - | - | - | - | ||||||||||||||||
Proxy fees | 2,746 | 2,325 | 2,324 | 2,336 | ||||||||||||||||
Other expenses | - | - | - | - | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total expenses | 205,721 | 4,386 | 4,972 | 4,463 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Less: Waivers | (103 | ) | (3 | ) | (9 | ) | (3 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net expenses | 205,618 | 4,383 | 4,963 | 4,460 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1,391,586 | 115,698 | 190,401 | 114,995 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Realized and unrealized gain (loss) from: | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Unaffiliated investment securities | (67,026 | ) | - | - | - | |||||||||||||||
Affiliated investment securities | - | 102,232 | 87,583 | 126,562 | ||||||||||||||||
Unaffiliatedin-kind redemptions | 6,208,410 | - | - | - | ||||||||||||||||
Affiliatedin-kind redemptions | - | 499,834 | 586,004 | 150,638 | ||||||||||||||||
Foreign currencies | - | - | - | - | ||||||||||||||||
Forward foreign currency contracts | - | - | - | - | ||||||||||||||||
Futures contracts | - | - | - | - | ||||||||||||||||
Written options | - | - | - | - | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net realized gain (loss) | 6,141,384 | 602,066 | 673,587 | 277,200 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Unaffiliated investment securities | 5,252,874 | - | - | - | ||||||||||||||||
Affiliated investment securities | - | 44,652 | 89,616 | 141,956 | ||||||||||||||||
Foreign currencies | - | - | - | - | ||||||||||||||||
Forward foreign currency contracts | - | - | - | - | ||||||||||||||||
Futures contracts | - | - | - | - | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in net unrealized appreciation | 5,252,874 | 44,652 | 89,616 | 141,956 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net realized and unrealized gain (loss) | 11,394,258 | 646,718 | 763,203 | 419,156 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 12,785,844 | $ | 762,416 | $ | 953,604 | $ | 534,151 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
66 | ||||
|
| |||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | Invesco S&P 500® Downside Hedged ETF (PHDG) | Invesco Total Return Bond ETF (GTO) | Invesco Ultra Short Duration ETF (GSY) | Invesco Variable Rate Investment Grade ETF (VRIG) | |||||||||||||||||||
$ | - | $ | - | $ | 2,152,330 | $ | 67,634,281 | $ | 13,425,389 | ||||||||||||||
- | 483,988 | 20,179 | - | - | |||||||||||||||||||
128,914 | 142,611 | - | - | 238,110 | |||||||||||||||||||
17,319 | 538 | 22 | 564 | 35 | |||||||||||||||||||
- | - | (826 | ) | (31,792 | ) | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
146,233 | 627,137 | 2,171,705 | 67,603,053 | 13,663,534 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
2,037 | 121,168 | 333,854 | - | 1,243,613 | |||||||||||||||||||
- | - | - | 4,516,711 | - | |||||||||||||||||||
- | - | - | 115,246 | - | |||||||||||||||||||
- | - | - | 12,040 | - | |||||||||||||||||||
- | - | - | 22,380 | - | |||||||||||||||||||
2,334 | 2,568 | 2,786 | 18,877 | 5,204 | |||||||||||||||||||
- | - | - | 402,994 | - | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
4,371 | 123,736 | 336,640 | 5,088,248 | 1,248,817 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
(4 | ) | (11,725 | ) | - | - | (19,347 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
4,367 | 112,011 | 336,640 | 5,088,248 | 1,229,470 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
141,866 | 515,126 | 1,835,065 | 62,514,805 | 12,434,064 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
- | (374,643 | ) | 1,813,360 | 2,056,310 | (2,354,093 | ) | |||||||||||||||||
146,406 | - | - | 108 | 30,975 | |||||||||||||||||||
- | 451,222 | - | - | - | |||||||||||||||||||
- | - | - | - | - | |||||||||||||||||||
- | - | (6,544 | ) | (40,906 | ) | - | |||||||||||||||||
- | - | 6,491 | (751,100 | ) | - | ||||||||||||||||||
- | (1,698,362 | ) | (1,298,793 | ) | - | - | |||||||||||||||||
- | - | (1,753 | ) | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
146,406 | (1,621,783 | ) | 512,761 | 1,264,412 | (2,323,118 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
- | 1,014,107 | 5,175,651 | 9,789,881 | 1,061,737 | |||||||||||||||||||
168,743 | (2,250 | ) | - | - | 243,000 | ||||||||||||||||||
- | - | 2,112 | (180,484 | ) | - | ||||||||||||||||||
- | - | 133 | (87,327 | ) | - | ||||||||||||||||||
- | (179,028 | ) | 32,545 | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
168,743 | 832,829 | 5,210,441 | 9,522,070 | 1,304,737 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
315,149 | (788,954 | ) | 5,723,202 | 10,786,482 | (1,018,381 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 457,015 | $ | (273,828 | ) | $ | 7,558,267 | $ | 73,301,287 | $ | 11,415,683 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
67 | ||||
|
| |||
Statements of Changes in Net Assets
For the years ended October 31, 2019 and 2018
Invesco Active U.S. Real Estate ETF (PSR) | Invesco Balanced Multi-Asset Allocation ETF (PSMB) | |||||||||||||||||||
Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2019 | Year Ended October 31, 2018 | |||||||||||||||||
Operations: | ||||||||||||||||||||
Net investment income | $ | 1,391,586 | $ | 646,614 | $ | 115,698 | $ | 46,890 | ||||||||||||
Net realized gain (loss) | 6,141,384 | (291,245 | ) | 602,066 | 6,601 | |||||||||||||||
Change in net unrealized appreciation (depreciation) . | 5,252,874 | (400,767 | ) | 44,652 | (82,789 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 12,785,844 | (45,398 | ) | 762,416 | (29,298 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders from: | ||||||||||||||||||||
Distributable earnings | (1,794,273 | ) | (457,566 | ) | (94,498 | ) | (41,471 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Shareholder Transactions: | ||||||||||||||||||||
Proceeds from shares sold | 110,777,526 | 8,200,189 | 13,727,128 | 1,359,379 | ||||||||||||||||
Value of shares repurchased | (28,024,316 | ) | (3,910,636 | ) | (12,769,071 | ) | - | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase in net assets resulting from share transactions | 82,753,210 | 4,289,553 | 958,057 | 1,359,379 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets | 93,744,781 | 3,786,589 | 1,625,975 | 1,288,610 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net assets: | ||||||||||||||||||||
Beginning of year | 27,806,765 | 24,020,176 | 2,620,402 | 1,331,792 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of year | $ | 121,551,546 | $ | 27,806,765 | $ | 4,246,377 | $ | 2,620,402 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Changes in Shares Outstanding: | ||||||||||||||||||||
Shares sold | 1,200,000 | 100,000 | 1,000,000 | 100,000 | ||||||||||||||||
Shares repurchased | (300,000 | ) | (50,000 | ) | (900,000 | ) | - | |||||||||||||
Shares outstanding, beginning of year | 350,000 | 300,000 | 200,001 | 100,001 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Shares outstanding, end of year | 1,250,000 | 350,000 | 300,001 | 200,001 | ||||||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
68 | ||||
|
| |||
Invesco Conservative Multi-Asset Allocation ETF (PSMC) | Invesco Growth Multi-Asset Allocation ETF (PSMG) | Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | ||||||||||||||||||||||||||
Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2019 | Year Ended October 31, 2018 | |||||||||||||||||||||||
$ | 190,401 | $ | 43,679 | $ | 114,995 | $ | 44,328 | $ | 141,866 | $ | 39,735 | |||||||||||||||||
673,587 | (2,910 | ) | 277,200 | 9,854 | 146,406 | 3,123 | ||||||||||||||||||||||
| 89,616 | (35,411 | ) | 141,956 | (92,178 | ) | 168,743 | (36,887 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
| 953,604 | 5,358 | 534,151 | (37,996 | ) | 457,015 | 5,971 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
(181,438 | ) | (43,324 | ) | (122,002 | ) | (37,124 | ) | (124,458 | ) | (40,004 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
13,463,524 | - | 2,698,237 | 1,410,361 | 3,907,547 | - | |||||||||||||||||||||||
(11,579,555 | ) | - | (1,401,116 | ) | - | - | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
| 1,883,969 | - | 1,297,121 | 1,410,361 | 3,907,547 | - | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
2,656,135 | (37,966 | ) | 1,709,270 | 1,335,241 | 4,240,104 | (34,033 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,249,034 | 1,287,000 | 2,690,766 | 1,355,525 | 1,276,384 | 1,310,417 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 3,905,169 | $ | 1,249,034 | $ | 4,400,036 | $ | 2,690,766 | $ | 5,516,488 | $ | 1,276,384 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,100,000 | - | 200,000 | 100,000 | 300,000 | - | |||||||||||||||||||||||
(900,000 | ) | - | (100,000 | ) | - | - | - | |||||||||||||||||||||
100,001 | 100,001 | 200,001 | 100,001 | 100,001 | 100,001 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
300,001 | 100,001 | 300,001 | 200,001 | 400,001 | 100,001 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
69 | ||||
|
| |||
Statements of Changes in Net Assets–(continued)
For the years ended October 31, 2019 and 2018
Invesco S&P 500® Downside Hedged ETF (PHDG) | Invesco Total Return Bond ETF (GTO) | ||||||||||||||||||||||||
Year Ended October 31, 2019 | Year Ended October 31, 2018 | Year Ended October 31, 2019 | Two Months Ended October 31, 2018(a) | Year Ended August 31, 2018 | |||||||||||||||||||||
Operations: | |||||||||||||||||||||||||
Net investment income | $ | 515,126 | $ | 362,692 | $ | 1,835,065 | $ | 246,381 | $ | 1,729,357 | |||||||||||||||
Net realized gain (loss) | (1,621,783 | ) | 4,228,306 | 512,761 | 566,597 | 306,266 | |||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 832,829 | (3,434,841 | ) | 5,210,441 | (1,523,442 | ) | (788,412 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (273,828 | ) | 1,156,157 | 7,558,267 | (710,464 | ) | 1,247,211 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Distributions to Shareholders from: | |||||||||||||||||||||||||
Distributable earnings | (483,318 | ) | (438,757 | ) | (2,627,276 | ) | (254,440 | ) | (1,904,261 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Shareholder Transactions: | |||||||||||||||||||||||||
Proceeds from shares sold | 16,147,665 | 5,899,570 | 131,138,988 | - | 18,394,224 | ||||||||||||||||||||
Value of shares repurchased | (21,875,872 | ) | (4,100,215 | ) | - | - | (57,597,609 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (5,728,207 | ) | 1,799,355 | 131,138,988 | - | (39,203,385 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net increase (decrease) in net assets | (6,485,353 | ) | 2,516,755 | 136,069,979 | (964,904 | ) | (39,860,435 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Net assets: | |||||||||||||||||||||||||
Beginning of period | 26,522,746 | 24,005,991 | 40,712,806 | 41,677,710 | 81,538,145 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
End of period | $ | 20,037,393 | $ | 26,522,746 | $ | 176,782,785 | $ | 40,712,806 | $ | 41,677,710 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Changes in Shares Outstanding: | |||||||||||||||||||||||||
Shares sold | 600,000 | 200,000 | 2,450,000 | - | 350,000 | ||||||||||||||||||||
Shares repurchased | (800,000 | ) | (150,000 | ) | - | - | (1,100,000 | ) | |||||||||||||||||
Shares outstanding, beginning of period | 950,000 | 900,000 | 800,000 | 800,000 | 1,550,000 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Shares outstanding, end of period | 750,000 | 950,000 | 3,250,000 | 800,000 | 800,000 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period September 1, 2018 through October 31, 2018. |
(b) | For the period June 1, 2018 through October 31, 2018. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
70 | ||||
|
| |||
Invesco Ultra Short Duration ETF (GSY) | Invesco Variable Rate Investment Grade ETF (VRIG) | ||||||||||||||||||||||
Year Ended October 31, 2019 | Five Months Ended October 31, 2018(b) | Year Ended May 31, 2018 | Year Ended October 31, 2019 | Year Ended October 31, 2018 | |||||||||||||||||||
$ | 62,514,805 | $ | 14,998,841 | $ | 19,427,424 | $ | 12,434,064 | $ | 7,874,125 | ||||||||||||||
1,264,412 | 90,013 | 2,820,225 | (2,323,118 | ) | (260,131 | ) | |||||||||||||||||
| 9,522,070 | (1,745,300 | ) | 100,925 | 1,304,737 | (1,489,063 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| 73,301,287 | 13,343,554 | 22,348,574 | 11,415,683 | 6,124,931 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
(63,730,963 | ) | (15,247,637 | ) | (22,054,804 | ) | (13,248,198 | ) | (8,510,280 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3,061,250,919 | 798,720,129 | 391,813,223 | 24,927,861 | 316,705,784 | |||||||||||||||||||
(2,060,592,233 | ) | (351,725,452 | ) | (301,733,842 | ) | (79,436,569 | ) | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| 1,000,658,686 | 446,994,677 | 90,079,381 | (54,508,708 | ) | 316,705,784 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
1,010,229,010 | 445,090,594 | 90,373,151 | (56,341,223 | ) | 314,320,435 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
1,611,555,306 | 1,166,464,712 | 1,076,091,561 | 447,868,017 | 133,547,582 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 2,621,784,316 | $ | 1,611,555,306 | $ | 1,166,464,712 | $ | 391,526,794 | $ | 447,868,017 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
60,900,000 | 15,900,000 | 7,800,000 | 1,000,000 | 12,600,000 | |||||||||||||||||||
(41,000,000 | ) | (7,000,000 | ) | (6,000,000 | ) | (3,200,000 | ) | - | |||||||||||||||
32,100,000 | 23,200,000 | 21,400,000 | 17,900,001 | 5,300,001 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
52,000,000 | 32,100,000 | 23,200,000 | 15,700,001 | 17,900,001 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
71 | ||||
|
| |||
Financial Highlights
Invesco Active U.S. Real Estate ETF (PSR)
Years Ended October 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 79.45 | $ | 80.07 | $ | 75.57 | $ | 73.43 | $ | 70.66 | ||||||||||
Net investment income(a) | 2.16 | 2.05 | 0.75 | 1.73 | 1.51 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 18.01 | (1.24 | ) | 5.44 | 3.04 | 2.51 | ||||||||||||||
Total from investment operations | 20.17 | 0.81 | 6.19 | 4.77 | 4.02 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (2.38 | ) | (1.43 | ) | (1.69 | ) | (1.80 | ) | (1.25 | ) | ||||||||||
Net realized gains | - | - | - | (0.83 | ) | - | ||||||||||||||
Total distributions | (2.38 | ) | (1.43 | ) | (1.69 | ) | (2.63 | ) | (1.25 | ) | ||||||||||
Net asset value at end of year | $ | 97.24 | $ | 79.45 | $ | 80.07 | $ | 75.57 | $ | 73.43 | ||||||||||
Market price at end of year(b) | $ | 97.13 | $ | 79.30 | $ | 80.04 | $ | 75.55 | $ | 73.49 | ||||||||||
Net Asset Value Total Return(c) | 25.82 | % | 1.02 | % | 8.37 | % | 6.65 | % | 5.72 | % | ||||||||||
Market Price Total Return(c) | 25.90 | % | 0.87 | % | 8.36 | % | 6.53 | % | 5.85 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 121,552 | $ | 27,807 | $ | 24,020 | $ | 26,450 | $ | 55,069 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.35 | % | 0.53 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||
Net investment income | 2.40 | % | 2.58 | % | 0.97 | % | 2.34 | % | 2.09 | % | ||||||||||
Portfolio turnover rate(d) | 30 | % | 92 | % | 134 | % | 192 | % | 199 | % |
(a) | Based on average shares outstanding. |
(b) | The mean between the last bid and ask prices. |
(c) | 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. |
(d) | 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.
72 | ||||
|
| |||
Financial Highlights–(continued)
Invesco Balanced Multi-Asset Allocation ETF (PSMB)
Years Ended October 31, | For the Period October 31, | ||||||||||||||
2019 | 2018 | 2017 | |||||||||||||
Per Share Operating Performance: | |||||||||||||||
Net asset value at beginning of period | $ | 13.10 | $ | 13.32 | $ | 12.50 | |||||||||
Net investment income(b)(c) | 0.38 | 0.36 | 0.18 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.09 | (0.23 | ) | 0.76 | |||||||||||
Total from investment operations | 1.47 | 0.13 | 0.94 | ||||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | (0.38 | ) | (0.32 | ) | (0.12 | ) | |||||||||
Net realized gains | (0.04 | ) | (0.03 | ) | - | ||||||||||
Total distributions | (0.42 | ) | (0.35 | ) | (0.12 | ) | |||||||||
Net asset value at end of period | $ | 14.15 | $ | 13.10 | $ | 13.32 | |||||||||
Market price at end of period(d) | $ | 14.17 | $ | 13.14 | $ | 13.33 | |||||||||
Net Asset Value Total Return(e) | 11.57 | % | 0.89 | % | 7.57 | %(f) | |||||||||
Market Price Total Return(e) | 11.37 | % | 1.12 | % | 7.65 | %(f) | |||||||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets at end of period (000’s omitted) | $ | 4,246 | $ | 2,620 | $ | 1,332 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses(g) | 0.11 | %(h) | 0.05 | % | 0.05 | %(i) | |||||||||
Net investment income(c) | 2.81 | %(h) | 2.68 | % | 2.08 | %(i) | |||||||||
Portfolio turnover rate(j) | 56 | % | 26 | % | 6 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | Net investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests. Ratio of net investment income (loss) does not include net investment income of the underlying funds in which the Fund invests. |
(d) | The mean between the last bid and ask prices. |
(e) | 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. |
(f) | The net asset value total return from Fund Inception (February 23, 2017, the first day of trading on the Exchange) to October 31, 2017 was 7.74%. The market price total return from Fund Inception to October 31, 2017 was 7.65%. |
(g) | 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. |
(h) | Ratios includenon-recurring costs associated with a proxy statement of 0.06%. |
(i) | Annualized. |
(j) | 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.
73 | ||||
|
| |||
Financial Highlights–(continued)
Invesco Conservative Multi-Asset Allocation ETF (PSMC)
Years Ended October 31, | For the Period February 21, 2017(a) Through October 31, | ||||||||||||||
2019 | 2018 | 2017 | |||||||||||||
Per Share Operating Performance: | |||||||||||||||
Net asset value at beginning of period | $ | 12.49 | $ | 12.87 | $ | 12.50 | |||||||||
Net investment income(b)(c) | 0.46 | 0.44 | 0.21 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.73 | (0.38 | ) | 0.31 | |||||||||||
Total from investment operations | 1.19 | 0.06 | 0.52 | ||||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | (0.66 | ) | (0.42 | ) | (0.15 | ) | |||||||||
Net realized gains | - | (0.02 | ) | - | |||||||||||
Total distributions | (0.66 | ) | (0.44 | ) | (0.15 | ) | |||||||||
Net asset value at end of period | $ | 13.02 | $ | 12.49 | $ | 12.87 | |||||||||
Market price at end of period(d) | $ | 13.04 | $ | 12.49 | $ | 12.88 | |||||||||
Net Asset Value Total Return(e) | 9.80 | % | 0.39 | % | 4.18 | %(f) | |||||||||
Market Price Total Return(e) | 9.96 | % | 0.31 | % | 4.26 | %(f) | |||||||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets at end of period (000’s omitted) | $ | 3,905 | $ | 1,249 | $ | 1,287 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses(g) | 0.09 | %(h) | 0.05 | % | 0.05 | %(i) | |||||||||
Net investment income(c) | 3.60 | %(h) | 3.42 | % | 2.36 | %(i) | |||||||||
Portfolio turnover rate(j) | 32 | % | 38 | % | 4 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | Net investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests. Ratio of net investment income (loss) does not include net investment income of the underlying funds in which the Fund invests. |
(d) | The mean between the last bid and ask prices. |
(e) | 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. |
(f) | The net asset value total return from Fund Inception (February 23, 2017, the first day of trading on the Exchange) to October 31, 2017 was 4.26%. The market price total return from Fund Inception to October 31, 2017 was 4.17%. |
(g) | 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. |
(h) | Ratios includenon-recurring costs associated with a proxy statement of 0.04%. |
(i) | Annualized. |
(j) | 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.
74 | ||||
|
| |||
Financial Highlights–(continued)
Invesco Growth Multi-Asset Allocation ETF (PSMG)
Years Ended October 31, | For the Period February 21, 2017(a) Through October 31, | ||||||||||||||
2019 | 2018 | 2017 | |||||||||||||
Per Share Operating Performance: | |||||||||||||||
Net asset value at beginning of period | $ | 13.45 | $ | 13.56 | $ | 12.50 | |||||||||
Net investment income(b)(c) | 0.38 | 0.35 | 0.17 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.23 | (0.15 | ) | 1.00 | |||||||||||
Total from investment operations | 1.61 | 0.20 | 1.17 | ||||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | (0.35 | ) | (0.28 | ) | (0.11 | ) | |||||||||
Net realized gains | (0.04 | ) | (0.03 | ) | - | ||||||||||
Total distributions | (0.39 | ) | (0.31 | ) | (0.11 | ) | |||||||||
Net asset value at end of period | $ | 14.67 | $ | 13.45 | $ | 13.56 | |||||||||
Market price at end of period(d) | $ | 14.69 | $ | 13.50 | $ | 13.59 | |||||||||
Net Asset Value Total Return(e) | 12.24 | % | 1.43 | % | 9.36 | %(f) | |||||||||
Market Price Total Return(e) | 11.97 | % | 1.58 | % | 9.60 | %(f) | |||||||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets at end of period (000’s omitted) | $ | 4,400 | $ | 2,691 | $ | 1,356 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses(g) | 0.10 | %(h) | 0.05 | % | 0.05 | %(i) | |||||||||
Net investment income(c) | 2.70 | %(h) | 2.51 | % | 1.90 | %(i) | |||||||||
Portfolio turnover rate(j) | 81 | % | 21 | % | 6 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | Net investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests. Ratio of net investment income (loss) does not include net investment income of the underlying funds in which the Fund invests. |
(d) | The mean between the last bid and ask prices. |
(e) | 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. |
(f) | The net asset value total return from Fund Inception (February 23, 2017, the first day of trading on the Exchange) to October 31, 2017 was 9.54%. The market price total return from Fund Inception to October 31, 2017 was 9.69%. |
(g) | 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. |
(h) | Ratios includenon-recurring costs associated with a proxy statement of 0.05%. |
(i) | Annualized. |
(j) | 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.
75 | ||||
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Financial Highlights–(continued)
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)
Years Ended October 31, | For the Period February 21, 2017(a) Through October 31, | ||||||||||||||
2019 | 2018 | 2017 | |||||||||||||
Per Share Operating Performance: | |||||||||||||||
Net asset value at beginning of period | $ | 12.76 | $ | 13.10 | $ | 12.50 | |||||||||
Net investment income(b)(c) | 0.46 | 0.40 | 0.20 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.94 | (0.34 | ) | 0.54 | |||||||||||
Total from investment operations | 1.40 | 0.06 | 0.74 | ||||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | (0.36 | ) | (0.37 | ) | (0.14 | ) | |||||||||
Net realized gains | (0.01 | ) | (0.03 | ) | - | ||||||||||
Total distributions | (0.37 | ) | (0.40 | ) | (0.14 | ) | |||||||||
Net asset value at end of period | $ | 13.79 | $ | 12.76 | $ | 13.10 | |||||||||
Market price at end of period(d) | $ | 13.82 | $ | 12.78 | $ | 13.12 | |||||||||
Net Asset Value Total Return(e) | 11.22 | % | 0.40 | % | 5.94 | %(f) | |||||||||
Market Price Total Return(e) | 11.28 | % | 0.41 | % | 6.10 | %(f) | |||||||||
Ratios/Supplemental Data: | |||||||||||||||
Net assets at end of period (000’s omitted) | $ | 5,516 | $ | 1,276 | $ | 1,310 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses(g) | 0.11 | %(h) | 0.05 | % | 0.05 | %(i) | |||||||||
Net investment income(c) | 3.48 | %(h) | 3.03 | % | 2.23 | %(i) | |||||||||
Portfolio turnover rate(j) | 65 | % | 32 | % | 5 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | Net investment income (loss) is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests. Ratio of net investment income (loss) does not include net investment income of the underlying funds in which the Fund invests. |
(d) | The mean between the last bid and ask prices. |
(e) | 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. |
(f) | The net asset value total return from Fund Inception (February 23, 2017, the first day of trading on the Exchange) to October 31, 2017 was 6.03%. The market price total return from Fund Inception to October 31, 2017 was 6.02%. |
(g) | 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. |
(h) | Ratios includenon-recurring costs associated with a proxy statement of 0.06%. |
(i) | Annualized. |
(j) | 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.
76 | ||||
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| |||
Financial Highlights–(continued)
Invesco S&P 500® Downside Hedged ETF (PHDG)
Years Ended October 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 27.92 | $ | 26.67 | $ | 23.42 | $ | 24.89 | $ | 29.50 | ||||||||||
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|
|
|
| |||||||||||
Net investment income(a) | 0.46 | 0.41 | 0.40 | 0.37 | 0.33 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.21 | ) | 1.36 | 3.37 | (1.37 | ) | (3.39 | ) | ||||||||||||
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|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | (0.75 | ) | 1.77 | 3.77 | (1.00 | ) | (3.06 | ) | ||||||||||||
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|
| |||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.45 | ) | (0.52 | ) | (0.52 | ) | (0.47 | ) | (0.32 | ) | ||||||||||
Net realized gains | - | - | - | - | (1.23 | ) | ||||||||||||||
Total distributions | (0.45 | ) | (0.52 | ) | (0.52 | ) | (0.47 | ) | (1.55 | ) | ||||||||||
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| |||||||||||
Net asset value at end of year | $ | 26.72 | $ | 27.92 | $ | 26.67 | $ | 23.42 | $ | 24.89 | ||||||||||
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| |||||||||||
Market price at end of year(b) | $ | 26.65 | $ | 27.86 | $ | 26.68 | $ | 23.45 | $ | 24.92 | ||||||||||
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| |||||||||||
Net Asset Value Total Return(c) | (2.71 | )% | 6.61 | % | 16.27 | % | (4.10 | )% | (10.83 | )% | ||||||||||
Market Price Total Return(c) | (2.75 | )% | 6.33 | % | 16.16 | % | (4.09 | )% | (10.69 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 20,037 | $ | 26,523 | $ | 24,006 | $ | 106,574 | $ | 416,981 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers(d) | 0.36 | %(e) | 0.38 | % | 0.39 | % | 0.37 | % | 0.35 | % | ||||||||||
Expenses, prior to Waivers(d) | 0.40 | %(e) | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Net investment income | 1.66 | %(e) | 1.45 | % | 1.59 | % | 1.52 | % | 1.23 | % | ||||||||||
Portfolio turnover rate(f) | 608 | % | 542 | % | 54 | % | 373 | % | 478 | % |
(a) | Based on average shares outstanding. |
(b) | The mean between the last bid and ask prices. |
(c) | 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. |
(d) | 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. |
(e) | Ratios includenon-recurring costs associated with a proxy statement of 0.01%. |
(f) | 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.
77 | ||||
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| |||
Financial Highlights–(continued)
Invesco Total Return Bond ETF (GTO)
Year Ended October 31, | Two Months Ended October 31, | Years Ended August 31, | For the Period August 31, | ||||||||||||||||||||||
2019 | 2018 | 2018 | 2017 | 2016 | |||||||||||||||||||||
Per Share Operating Performance: | |||||||||||||||||||||||||
Net asset value at beginning of period | $ | 50.89 | $ | 52.10 | $ | 52.61 | $ | 52.54 | $ | 49.97 | |||||||||||||||
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|
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| ||||||||||||||||
Net investment income(b) | 1.44 | 0.31 | 1.47 | 1.47 | 0.72 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.57 | (1.20 | ) | (0.37 | ) | 0.29 | 2.42 | ||||||||||||||||||
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|
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|
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| ||||||||||||||||
Total from investment operations | 6.01 | (0.89 | ) | 1.10 | 1.76 | 3.14 | |||||||||||||||||||
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| ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||||
Net investment income | (1.55 | ) | (0.32 | ) | (1.49 | ) | (1.38 | ) | (0.57 | ) | |||||||||||||||
Net realized gains | (0.96 | ) | - | (0.12 | ) | (0.31 | ) | - | |||||||||||||||||
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| ||||||||||||||||
Total distributions | (2.51 | ) | (0.32 | ) | (1.61 | ) | (1.69 | ) | (0.57 | ) | |||||||||||||||
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| ||||||||||||||||
Net asset value at end of period | $ | 54.39 | $ | 50.89 | $ | 52.10 | $ | 52.61 | $ | 52.54 | |||||||||||||||
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| ||||||||||||||||
Market price at end of period | $ | 54.43 | (c) | $ | 50.93 | (c) | $ | 52.10 | (c) | $ | 52.67 | $ | 52.60 | ||||||||||||
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| ||||||||||||||||
Net Asset Value Total Return(d) | 12.22 | % | (1.72 | )% | 2.14 | % | 3.47 | % | 6.29 | % | |||||||||||||||
Market Price Total Return(d) | 12.20 | % | (1.64 | )% | 2.02 | % | |||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||
Net assets at end of period (000’s omitted) | $ | 176,783 | $ | 40,713 | $ | 41,678 | $ | 81,538 | $ | 21,014 | |||||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||||
Expenses, after Waivers | 0.50 | %(e) | 0.50 | %(f) | 0.50 | % | 0.49 | % | 0.49 | %(f) | |||||||||||||||
Expenses, prior to Waivers | 0.50 | %(e) | 0.50 | %(f) | 0.51 | % | 0.51 | % | 0.50 | %(f) | |||||||||||||||
Net investment income | 2.75 | % | 3.58 | %(f) | 2.80 | % | 2.87 | % | 2.56 | %(f) | |||||||||||||||
Portfolio turnover rate(g) | 511 | % | 53 | % | 219 | % | 171 | % | 131 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | The mean between the last bid and ask prices. |
(d) | 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. |
(e) | 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. |
(f) | Annualized. |
(g) | 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.
78 | ||||
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| |||
Financial Highlights–(continued)
Invesco Ultra Short Duration ETF (GSY)
Year Ended October 31, 2019 | Five Months Ended October 31, 2018 | Years Ended May 31, | ||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||||||||||
Net asset value at beginning of period | $ | 50.20 | $ | 50.28 | $ | 50.28 | $ | 50.01 | $ | 50.10 | $ | 50.30 | ||||||||||||||||||
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| |||||||||||||||||||
Net investment income(a) | 1.38 | 0.55 | 0.87 | 0.70 | 0.60 | 0.63 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.24 | (0.06 | ) | 0.14 | 0.24 | (0.11 | ) | (0.12 | ) | |||||||||||||||||||||
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| |||||||||||||||||||
Total from investment operations | 1.62 | 0.49 | 1.01 | 0.94 | 0.49 | 0.51 | ||||||||||||||||||||||||
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| |||||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||||||||
Net investment income | (1.39 | ) | (0.57 | ) | (1.01 | ) | (0.67 | ) | (0.58 | ) | (0.71 | ) | ||||||||||||||||||
Net realized gains | (0.01 | ) | - | - | - | - | - | |||||||||||||||||||||||
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| |||||||||||||||||||
Total distributions | (1.40 | ) | (0.57 | ) | (1.01 | ) | (0.67 | ) | (0.58 | ) | (0.71 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Net asset value at end of period | $ | 50.42 | $ | 50.20 | $ | 50.28 | $ | 50.28 | $ | 50.01 | $ | 50.10 | ||||||||||||||||||
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| |||||||||||||||||||
Market price at end of period | $ | 50.42 | (b) | $ | 50.22 | (b) | $ | 50.29 | (b) | $ | 50.29 | $ | 50.03 | $ | 50.11 | |||||||||||||||
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| |||||||||||||||||||
Net Asset Value Total Return(c) | 3.25 | % | 0.98 | % | 2.02 | % | 1.90 | % | 0.98 | % | 1.01 | % | ||||||||||||||||||
Market Price Total Return(c) | 3.20 | % | 1.00 | % | 2.02 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||
Net assets at end of period (000’s omitted) | $ | 2,621,784 | $ | 1,611,555 | $ | 1,166,465 | $ | 1,076,092 | $ | 715,109 | $ | 440,913 | ||||||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||||||||||||
Expenses, after Waivers | 0.23 | % | 0.25 | %(d) | 0.27 | % | 0.27 | % | 0.28 | % | 0.25 | % | ||||||||||||||||||
Expenses, prior to Waivers | 0.23 | % | 0.25 | %(d) | 0.28 | % | 0.28 | % | 0.28 | % | 0.25 | % | ||||||||||||||||||
Net investment income | 2.77 | % | 2.64 | %(d) | 1.74 | % | 1.40 | % | 1.21 | % | 1.25 | % | ||||||||||||||||||
Portfolio turnover rate(e) | 30 | % | 6 | % | 56 | % | 52 | % | 25 | % | 44 | % |
(a) | Based on average shares outstanding. |
(b) | The mean between the last bid and ask prices. |
(c) | 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. |
(d) | Annualized. |
(e) | 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.
79 | ||||
|
| |||
Financial Highlights–(continued)
Invesco Variable Rate Investment Grade ETF (VRIG)
Years Ended October 31, | For the Period October 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of period | $ | 25.02 | $ | 25.20 | $ | 24.98 | $ | 25.00 | ||||||||||||
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|
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|
|
| |||||||||||||
Net investment income(b) | 0.75 | 0.65 | 0.50 | 0.06 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.03 | ) | (0.15 | ) | 0.29 | (0.03 | ) | |||||||||||||
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|
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|
| |||||||||||||
Total from investment operations | 0.72 | 0.50 | 0.79 | 0.03 | ||||||||||||||||
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|
|
|
| |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.80 | ) | (0.68 | ) | (0.56 | ) | (0.05 | ) | ||||||||||||
Return of capital | - | - | (0.01 | ) | (0.00 | )(c) | ||||||||||||||
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| |||||||||||||
Total distributions | (0.80 | ) | (0.68 | ) | (0.57 | ) | (0.05 | ) | ||||||||||||
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|
| |||||||||||||
Net asset value at end of period | $ | 24.94 | $ | 25.02 | $ | 25.20 | $ | 24.98 | ||||||||||||
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| |||||||||||||
Market price at end of period(d) | $ | 24.95 | $ | 25.02 | $ | 25.22 | $ | 25.04 | ||||||||||||
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|
| |||||||||||||
Net Asset Value Total Return(e) | 2.92 | % | 2.01 | % | 3.21 | % | 0.14 | %(f) | ||||||||||||
Market Price Total Return(e) | 2.96 | % | 1.92 | % | 3.04 | % | 0.38 | %(f) | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of period (000’s omitted) | $ | 391,527 | $ | 447,868 | $ | 133,548 | $ | 49,956 | ||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | %(g) | ||||||||||||
Net investment income | 3.00 | % | 2.59 | % | 1.98 | % | 2.03 | %(g) | ||||||||||||
Portfolio turnover rate(h) | 62 | % | 26 | % | 23 | % | 2 | % |
(a) | Commencement of investment operations. |
(b) | Based on average shares outstanding. |
(c) | Amount represents less than $(0.005). |
(d) | The mean between the last bid and ask prices. |
(e) | 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. |
(f) | The net asset value total return from Fund Inception (September 22, 2016, the first day of trading on the Exchange) to October 31, 2016 was 0.18%. The market price total return from Fund Inception to October 31, 2016 was 0.22%. |
(g) | Annualized. |
(h) | 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.
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Notes to Financial Statements
Invesco Actively Managed Exchange-Traded Fund Trust
October 31, 2019
NOTE 1–Organization
Invesco Actively Managed Exchange-Traded Fund Trust (the “Trust”) was organized as a Delaware statutory trust on November 6, 2007 and is authorized to have multiple series of portfolios. The Trust is anopen-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). This report includes the following portfolios:
Full Name | Short Name | |||
Invesco Active U.S. Real Estate ETF (PSR) | “Active U.S. Real Estate ETF” | |||
Invesco Balanced Multi-Asset Allocation ETF (PSMB) | “Balanced Multi-Asset Allocation ETF” | |||
Invesco Conservative Multi-Asset Allocation ETF (PSMC) | “Conservative Multi-Asset Allocation ETF” | |||
Invesco Growth Multi-Asset Allocation ETF (PSMG) | “Growth Multi-Asset Allocation ETF” | |||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | “Moderately Conservative Multi-Asset Allocation ETF” | |||
Invesco S&P 500®Downside Hedged ETF (PHDG) | “S&P 500®Downside Hedged ETF” | |||
Invesco Total Return Bond ETF (GTO) | “Total Return Bond ETF” | |||
Invesco Ultra Short Duration ETF (GSY) | “Ultra Short Duration ETF” | |||
Invesco Variable Rate Investment Grade ETF (VRIG) | “Variable Rate Investment Grade 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:
Fund | Exchange | |||
Active U.S. Real Estate ETF | NYSE Arca, Inc. | |||
Balanced Multi-Asset Allocation ETF | Cboe BZX Exchange, Inc. | |||
Conservative Multi-Asset Allocation ETF | Cboe BZX Exchange, Inc. | |||
Growth Multi-Asset Allocation ETF | Cboe BZX Exchange, Inc. | |||
Moderately Conservative Multi-Asset Allocation ETF | Cboe BZX Exchange, Inc. | |||
S&P 500®Downside Hedged ETF | NYSE Arca, Inc. | |||
Total Return Bond ETF | NYSE Arca, Inc. | |||
Ultra Short Duration ETF | NYSE Arca, Inc. | |||
Variable Rate Investment Grade ETF | The NASDAQ Stock Market |
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.” Creation Units for Active U.S. Real Estate ETF, Balanced Multi-Asset Allocation ETF, Conservative Multi-Asset Allocation ETF, Growth Multi-Asset Allocation ETF and Moderately Conservative Multi-Asset Allocation ETF are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Creation Units for Total Return Bond ETF, Ultra Short Duration ETF and Variable Rate Investment Grade ETF are issued and redeemed principally in exchange for the deposit or delivery of cash. Creation Units for S&P 500® Downside Hedged ETF are issued and redeemed partially in exchange for the deposit or delivery of cash and partially in exchange for Deposit Securities. Except when aggregated in Creation Units by authorized participants, the Shares are not individually redeemable securities of the Funds.
Balanced Multi-Asset Allocation ETF, Conservative Multi-Asset Allocation ETF, Growth Multi-Asset Allocation ETF and Moderately Conservative Multi-Asset Allocation ETF are each a “fund of funds,” in that each invests in other exchange-traded funds (“Underlying Funds”) advised by Invesco Capital Management LLC (the “Adviser”) or its affiliates, or other unaffiliated advisers. Each Underlying Fund’s accounting policies are outlined in that Underlying Fund’s financial statements and are publicly available.
The investment objective for Active U.S. Real Estate ETF is to seek to achieve high total return through growth of capital and current income. The investment objective for Balanced Multi-Asset Allocation ETF is to seek to provide current income and capital appreciation. The investment objective for Conservative Multi-Asset Allocation ETF is to seek total return consistent with a lower level of risk relative to the broad stock market. The investment objective for Growth Multi-Asset Allocation ETF is to seek to provide long-term capital appreciation. The investment objective for Moderately Conservative Multi-Asset Allocation ETF is to seek to provide current income and some capital appreciation. The investment objective for S&P 500® Downside Hedged ETF is to seek to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income
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market returns. The investment objective for Total Return Bond ETF is to seek maximum total return, comprised of income and capital appreciation. The investment objective of Ultra Short Duration ETF is to seek maximum current income, consistent with preservation of capital and daily liquidity. The investment objective for Variable Rate Investment Grade ETF is to seek to generate current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective.
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 Valuations- Securities, including restricted securities, are valued according to the following policies: |
Securities, including restricted securities in an Underlying Fund, if any, that are held as investments of a Fund, are valued in accordance with the Underlying Fund’s valuation policy. The policies of Underlying Funds affiliated with the Funds as a result of having the same investment adviser are the same as those set forth below.
A security listed or traded on an exchange (except convertible securities) is generally valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded or, lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in theover-the-counter (“OTC”) market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded, or at the final settlement price set by such exchange. Swaps and options not listed on an exchange are valued by an independent source. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investment companies are valued using such company’s NAV per share, unless the shares are exchange-traded, in which case they are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such asinstitution-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. 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. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, a Fund 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 using procedures approved by the Board of Trustees. 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 approved 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.
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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 last bid price may be used to value exchange-traded equity securities. The mean between the last bid and asked prices may be used to value debt obligations, including corporate loans, and unlisted equity securities.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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 economic conditions, interest rates, investor perceptions 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.
B. | Other Risks |
Active Trading Risk. Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability.
Agency Debt Risk. Certain Funds may invest in debt issued by government agencies, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Instruments issued by government agencies generally are backed only by the general creditworthiness and reputation of the government agency issuing the instrument and are not backed by the full faith and credit of the U.S. government. As a result, there is uncertainty as to the current status of many obligations of Fannie Mae, Freddie Mac and other agencies that are placed under conservatorship of the federal government.
Authorized Participant Concentration Risk. Only Authorized Participants (“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 those APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities underlying 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, which may be more likely to trade at a premium or discount to each Fund’s NAV and possibly face trading halts and/or delisting. This risk may be heightened for a Fund if it invests innon-U.S. securities, which may have lower trading volumes.
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.
Cash Transaction Risk. Most exchange-traded funds (“ETFs”) generally makein-kind redemptions to avoid being taxed on gains on the distributed portfolio securities at the fund level. However, certain Funds currently intends to effect creations and redemptions principally for cash, rather than principallyin-kind, due to the nature of the Fund’s investments. As such, each Fund may be required to sell portfolio securities to obtain the cash needed to distribute redemption proceeds. Therefore, a Fund may recognize a capital gain on these sales that might not have been incurred if the Fund had made a redemptionin-kind. This may decrease the tax efficiency of each Fund compared to ETFs that utilize anin-kind redemption process and there may be a substantial difference in theafter-tax rate of the return between each Fund and conventional ETFs.
Collateralized Loan Obligations (“CLOs”) and Collateralized Debt Obligations (“CDOs”) Risk. Certain Funds may invest in CLOs and CDOs. CLOs bear many of the same risks as other forms of asset-backed securities (“ABS”), including interest rate risk, credit risk and default risk. As they are backed by pools of loans, CLOs also bear similar risks to investing in loans directly. CLOs issue classes or “tranches’’ that vary in risk and yield. CLOs may experience substantial losses attributable to loan defaults. Losses caused by defaults on underlying assets are borne first by the holders of subordinate tranches. Each Fund’s investment in CLOs may decrease in market value when the CLO experiences loan defaults or credit impairment, the disappearance of a subordinate tranche, or market anticipation of defaults and investor aversion to CLO securities as a class.
Commercial Paper Risk. Certain Funds may invest in commercial paper. The value of the Fund’s investment in commercial paper, which is an unsecured promissory note that generally has a maturity date between one and 270 days and is issued by a U.S. or foreign entity, is susceptible to changes in the issuer’s financial condition or credit quality. Investments in commercial paper are usually discounted from their value at maturity. Commercial paper can be fixed-rate or variable rate and can be adversely affected by changes in interest rates.
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Commodity Pool Risk. Certain Funds may invest in futures contracts, which cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and rules of the Commodity Futures Trading Commission (“CFTC”). The Adviser is registered as a Commodity Pool Operator (“CPO”) and as a commodity trading advisor (“CTA”), and the Fund will be operated in accordance with CFTC rules. Registration as a CPO or CTA subjects the Adviser to additional laws, regulations and enforcement policies, all of which could increase compliance costs and may affect the operations and financial performance of the Fund. Registration as a commodity pool may have negative effects on the ability of the Fund to engage in its planned investment program.
Credit Risk. The issuer of instruments in which certain Funds invest may be unable to meet interest and/or principal payments. An issuer’s securities may decrease in value if its financial strength weakens, which may reduce its credit rating and possibly its ability to meet its contractual obligations. Even in the case of collateralized debt obligations, there is no assurance that the sale of collateral would raise enough cash to satisfy an issuer’s payment obligations or that the collateral can or will be liquidated.
Currency Risk. Because each Fund’s NAV is determined in U.S. dollars, a Fund’s NAV could decline if the currency of anon-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 the Fund. As a result, investors have the potential for losses regardless of the length of time they intend to hold Shares.
Derivatives Risk. Derivatives involve risks different from, or possibly greater than, risks associated with other types of investments. Derivatives may be harder to value and may also be less tax efficient. To the extent that a Fund uses derivatives for hedging or to gain or limit exposure to a particular market or market segment, there may be imperfect correlation between the value of the derivative instrument and the value of the instrument being hedged or the relevant market or market segment, in which case the Fund may not realize the intended benefits. There is also the risk that during adverse market conditions, an instrument which would usually operate as a hedge provides no hedging benefits at all. A Fund’s use of derivatives may be limited by the requirements for taxation of the Fund as a regulated investment company as well as regulatory changes.
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 particular industries will become negative. 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.
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. Fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in emerging market securities, and emerging market securities may have relatively low market liquidity, decreased publicly available information about issuers, and inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Emerging market securities also are subject to the risks of expropriation, nationalization or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in emerging market securities also may be subject to dividend withholding or confiscatory taxes, currency blockage and/or transfer restrictions. Emerging markets usually are subject to greater market volatility, lower trading volume, political 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. 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.
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
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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 adversely affect the value of the security.
Foreign Investment Risk. For certain Funds, investments in the securities ofnon-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. Foreign securities also are subject to the risks of expropriation, nationalization, political instability, local taxation, potential currency transfer restrictions or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. These risks may be exacerbated in emerging market countries. If 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. Such risks may be exacerbated in emerging markets, where securities laws are relatively new and unsettled.
High Yield Securities (Junk Bond) Risk. Compared to higher quality debt securities, high yield debt securities (commonly referred to as “junk bonds”) involve a greater risk of default or price changes due to changes in the credit quality of the issuer because they are generally unsecured and may be subordinated to other creditors’ claims. They are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. High yield debt securities often are issued by smaller, less creditworthy companies or by highly leveraged (indebted) firms, which generally are less able than more financially stable firms to make scheduled payment of interest and principal. The values of junk bond often fluctuate more in response to company, political, regulatory or economic developments than higher quality bonds, and their values can decline significantly over short periods of time or during periods of economic difficulty when the bonds could be difficult to value or sell at a fair price.
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, legislative or regulatory changes, adverse market conditions and/or increased competition within the industry or industry group. In addition, at times, such industry or industry group may be out of favor and underperform other industries, industry groups or the market as a whole.
Interest Rate Risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration. “Duration risk” is related to interest rate risk; it refers to the risks associated with the sensitivity of a bond’s price to a one percent change in interest rates. Bonds with longer durations (i.e., a greater length of time until they reach maturity) face greater duration risk, meaning that they tend to exhibit greater volatility and are more sensitive to changes in interest rates than bonds with shorter durations. The Fund seeks to limit its exposure to interest rate risk and duration risk by constructing a portfolio of variable rate instruments that have an average duration of one year or less.
Investing in ETFs and Other Investment Companies Risk. A Fund’s investment performance may depend on the investment performance of the funds in which it invests. An investment in an investment company is subject to the risks associated with that investment company. Each Fund will pay indirectly a proportional share of the fees and expenses of the investment companies in which it invests (including costs and fees of the investment companies), while continuing to pay its own management fee to the Adviser. As a result, shareholders will absorb duplicate levels of fees with respect to a Fund’s investments in other investment companies.
Issuer-Specific Changes Risk. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole.
Liquidity Risk. For certain Funds, liquidity risk exists when a particular investment is difficult to purchase or sell. If the 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.
Management Risk. The Funds are subject to management risk because they are actively managed portfolios. In managing a Fund’s portfolio securities, the Adviser or asub-adviser (as applicable and as set forth below), applies investment techniques and risk analyses in making investment decisions, but there can be no guarantee that these will produce the desired results.
Mortgage-Backed and Asset-Backed Securities Risk. For certain Funds, investments in mortgage- and asset-backed securities are subject to prepayment or call risk, which is the risk that payments from the borrower may be received earlier than expected due to changes in the rate at which the underlying loans are prepaid. Securities may be prepaid at a price less than the original purchase value. In addition, TBA transactions involve the risk that the securities received may be less favorable than what was anticipated by the Fund when entering into the TBA transaction and counterparty risk. Default or bankruptcy of a counterparty to a TBA transaction would expose the Fund to potential loss and could affect the Fund’s returns.
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Non-Diversified Fund Risk. Because each Fund (except Active U.S. Real Estate ETF and S&P 500® Downside Hedged ETF) isnon-diversified and can invest a greater portion of its assets in securities of individual issuers than 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 each Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on each Fund’s performance.
Portfolio Size Risk. Under normal market conditions, certain Funds typically will hold a small number of positions (approximately10-20 Underlying Funds). To the extent that a significant portion of a Fund’s total assets is invested in a limited number of holdings, the appreciation or depreciation of any one Underlying Fund may have a greater impact on such Fund’s NAV than it would if the Fund held a greater number of constituents.
Portfolio Turnover Risk. Certain Funds may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of its 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 thein-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.
REIT Risk. For certain Funds, although the Funds will not invest in real estate directly, the REITs in which the Funds invest are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, 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. REITs may be affected by changes in the values of the underlying properties that they own or operate and could fail to qualify for favorable tax or regulatory treatment. REITs also are dependent upon specialized management skills, and their investments may be concentrated in relatively few properties, or in a small geographic area or a single property type. REITs rely heavily on cash flows and a variety of economic and other factors may adversely affect a lessee’s ability to meet its obligations to a REIT. Should a lessee default on their loan, the REIT may experience delays in enforcing its rights as a lessor and may incur substantial costs associated in protecting its investments.
Risk of Investing in Loans. Investments in loans, including loan syndicates and other direct lending opportunities, involve special types of risks, including credit risk, interest rate risk, counterparty risk and prepayment risk. Loans may offer a fixed or floating interest rate. Loans are often generally below investment grade and may be unrated. The Fund’s investments in loans can be difficult to value accurately and may be more susceptible to liquidity risk than fixed-income instruments of similar credit quality and/or maturity. The Fund is also subject to the risk that the value of the collateral for the loan may be insufficient to cover the borrower’s obligations should the borrower fail to make payments or become insolvent. Participations in loans may subject the Fund to the credit risk of both the borrower and the issuer of the participation and may make enforcement of loan covenants more difficult for the Fund as legal action may have to go through the issuer of the participations. Transactions in loans are often subject to long settlement periods, thus potentially limiting the ability of the Fund to invest sale proceeds in other investments and to use proceeds to meet its current redemption obligations. Thus, to the extent the Fund effects redemptions in cash, the Fund is subject to the risk of selling other investments or taking other actions necessary to raise cash to meet its redemption obligations.
Small- andMid-Capitalization Company Risk. Certain Funds invest in securities of small- andmid- capitalization companies, which 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- andmid-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.
Tax Risk. There is no guarantee that the income from certain Funds will be exempt from federal or state income taxes. Events occurring after the date of issuance of a municipal bond or after a Fund’s acquisition of a municipal bond may result in a determination that interest on that bond is includible in gross income for federal income tax purposes retroactively to its date of issuance. Such a determination may cause a portion of prior distributions by a Fund to its shareholders to be taxable to those shareholders in the year of receipt. Federal or state changes in income or alternative minimum tax rates or in the tax treatment of municipal bonds may make municipal bonds less attractive as investments and cause them to lose value.
To-Be-Announced (TBA) Transactions Risk. TBA purchase commitments involve a risk of loss if the value of the securities to be purchased declines prior to settlement date or if the counterparty may not deliver the securities as promised. Selling a TBA involves a risk of loss if the value of the securities to be sold goes up prior to settlement date. TBA transactions involve counterparty risk. Default or bankruptcy of a counterparty to a TBA transaction would expose a Fund to potential loss and could affect the Fund’s returns.
VIX Index Risk. For S&P 500® Downside Hedged ETF, the Chicago Board Options Exchange (“CBOE”) can make methodological changes to the calculation of the Chicago Board Options Exchange Volatility Index (“VIX Index”) that could affect the value of the futures contracts on the VIX Index. There can be no assurance that the CBOE will not change the VIX Index calculation methodology in a way that may affect the value of each Fund’s Shares. Additionally, the CBOE may alter,
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discontinue or suspend calculation or dissemination of the VIX Index and/or the exercise settlement value. Any of these actions could adversely affect the value of each Fund’s Shares.
C. | 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 the accrual basis from settlement date.Pay-in-kind interest income andnon-cash dividend income received in the form of securitiesin-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on theex-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 each 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 each Fund’s NAV and, accordingly, they reduce each 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.
D. | 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 and the country that has the primary market for the issuer’s securities, 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. |
E. | Dividends and Distributions to Shareholders - Each Fund (except Total Return Bond ETF, Ultra Short Duration ETF and Variable Rate Investment Grade ETF) declares and pays dividends from net investment income, if any, to their shareholders quarterly and record such dividends onex-dividend date. Total Return Bond ETF, Ultra Short Duration ETF and Variable Rate Investment Grade ETF each declares and pays dividends from net investment income, if any, to its shareholders monthly and records such dividends onex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them onex-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 fiscalyear-end. |
F. | 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 forin-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.
G. | Expenses - Each Fund (except Ultra Short Duration ETF) has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Funds, including payments to the AffiliatedSub-Advisers (as defined below) for each Fund (except S&P 500®Downside Hedged ETF), and for |
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each Fund, the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.
Ultra Short Duration ETF is responsible for all of its expenses, including the investment advisory fees, cost of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, acquired fund fees and expense, if any, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (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.
Expenses of the Trust that are excluded from a Fund’s unitary management fee (if applicable) and are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are excluded from each Fund’s unitary management fee (if applicable) and that 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 theperiod-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. However, based on experience, the Trust believes the risk of loss to be remote. |
J. | Commercial Mortgage-Backed Securities - Total Return Bond ETF, Ultra Short Duration ETF and Variable Rate Investment Grade ETF may invest in both single and multi-issuer Commercial Mortgage-Backed Securities (“CMBS”). This includes both investment grade andnon-investment grade CMBS as well as othernon-rated CMBS. A CMBS is a type of mortgage-backed security that is secured by one or more mortgage loans on interests in commercial real estate property. CMBS differ from conventional debt securities because principal is paid back over the life of the security rather than at maturity. Investments in CMBS are subject to the various risks which relate to the pool of underlying assets in which the CMBS represents an interest. Securities backed by commercial real estate assets are subject to securities market risks as well as risks similar to those of direct ownership of commercial real estate loans. Risks include the ability of a borrower to meet its obligations on the loan which could lead to default or foreclosure of the property. Such actions may impact the amount of proceeds ultimately derived from the loan, and the timing of receipt of such proceeds. |
Management estimates future expected cash flows at the time of purchase based on the anticipated repayment dates on the CMBS. Subsequent changes in expected cash flow projection may result in a prospective change in the timing or character of income recognized on these securities, or the amortized cost of these securities. Each Fund amortizes premiums and/or accretes discounts based on the projected cash flows. Realized and unrealized gains and losses on CMBS are included in the Statements of Operations asNet realized gain (loss) from investment securitiesandChange in net unrealized appreciation (depreciation) of investment securities, respectively.
K. | Repurchase Agreements - The Funds may enter into repurchase agreements. Collateral on repurchase agreements, including each Fund’spro-rata interest in joint repurchase agreements, is taken into possession by such Funds upon entering into the repurchase agreement. Collateral consisting of U.S. Government Securities and U.S. Government Sponsored Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. Collateral consisting ofnon-government securities is marked to market daily to ensure its market value is at least 105% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to procedures approved by the Board of Trustees, are through participation with other mutual funds, private accounts and certainnon-registered investment companies managed by the investment advisor or its affiliates (“Joint repurchase agreements”). The principal amount of the repurchase agreement is equal to the value atperiod-end. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Funds might incur expenses in enforcing their rights, and could experience losses, including a decline in the value of the collateral and loss of income. |
L. | Structured Securities - Certain Funds may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, |
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commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument. |
Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Statements of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) on the Statements of Operations.
M. | Securities Lending - Each Fund may participate in securities lending. Each Fund may loan portfolio securities having a market value up toone-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 generally invested in an affiliated money market fund 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. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included inSecurities lending incomeon the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities. |
N. | 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 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. A 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 each 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 fiscalperiod-end, resulting from changes in exchange rates. |
Certain Funds 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.
O. | Forward Foreign Currency Contracts - Certain Funds may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time or through forward foreign currency contracts to manage or minimize currency or exchange rate risk. |
Each Fund also enters into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund also enters into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount(non-deliverable forwards). The Fund sets aside liquid assets in an amount equal to the dailymark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in
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advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statements of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statements of Assets and Liabilities.
P. | Futures Contracts - Certain Funds may enter into futures contracts to simulate full investment in securities or manage exposure to equity and market price movements and/or currency risks and provide exposure to markets and indexes. |
A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security or index for a specified price at a future date. Certain Funds will only enter into futures contracts that are traded on a U.S. exchange and that are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant broker. During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as a receivable or payable on the Statements of Assets and Liabilities. When the contracts are closed or expire, each Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statements of Operations.
The primary risks associated with futures contracts are market risk, leverage risk and the absence of a liquid secondary market. If a Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and may be required to continue to maintain the margin deposits on the futures contracts until the position expired or matured. As futures contracts approach expiration, they may be replaced by similar contracts that have a later expiration. This process is referred to as “rolling.” If the market for these contracts is in “contango,” meaning that the prices of futures contracts in the nearer months are lower than the price of contracts in the distant months, the sale of the near-term month contract would be at a lower price than the longer-term contract, resulting in a cost to “roll” the futures contract. The actual realization of a potential roll cost will depend on the difference in price of the near and distant contracts. The contracts included in the VIX Index historically have traded in “contango” markets, resulting in a roll cost, which could adversely affect the value of Shares of the S&P 500® Downside Hedged ETF. Futures have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures contracts, guarantees the futures against default. Risks may exceed amounts recognized in the Statements of Assets and Liabilities.
Q. | Call Options Purchased and Written - Certain Funds may write call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. An uncovered call option exists without the ownership of the underlying security. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. |
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statements of Assets and Liabilities. The amount of the liability is subsequently“marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statements of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statements of Assets and Liabilities. The amount of the investment is subsequently“marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statements of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
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R. | Put Options Purchased and Written - Certain Funds may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. |
Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying portfolio securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statements of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statements of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively.
A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
S. | Swap Agreements - Certain Funds may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. These agreements may contain, among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain apre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. Interest rate, total return, index and currency exchange rate swap agreements aretwo- party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. |
In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statements of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statements of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statements of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statements of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statements of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statements of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statements of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
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T. | Distributions from Distributable Earnings— In accordance with the Securities and Exchange Commission’s issuance of Disclosure Update and Simplification, the Funds have presented the total, rather than the components of distributions to shareholders, except for tax return of capital distributions, if any, in the Statements of Changes in Net Assets. |
For the year ended August 31, 2018, distributions from distributable earnings for Total Return Bond ETF consisted of distributions from net investment income of $1,754,386 and distributions from net realized gains of $149,875. For the year ended May 31, 2018, distributions from distributable earnings for Ultra Short Duration ETF consisted of distributions from net investment income.
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, providing certain clerical, bookkeeping and other administrative services, and for each Fund (except S&P 500® Downside Hedged ETF), oversight of Invesco Advisers, Inc., Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “AffiliatedSub-Advisers”).
Pursuant to an Investment Management Agreement, each Fund (except Ultra Short Duration ETF) accrues daily and pays monthly to the Adviser an annual unitary management fee equal to a percentage of its average daily net assets as follows:
Unitary Management Fees (as a % of Net Assets) | ||||
Active U.S. Real Estate ETF | 0.35% | |||
Balanced Multi-Asset Allocation ETF | 0.05% | |||
Conservative Multi-Asset Allocation ETF | 0.05% | |||
Growth Multi-Asset Allocation ETF | 0.05% | |||
Moderately Conservative Multi-Asset Allocation ETF | 0.05% | |||
S&P 500®Downside Hedged ETF | 0.39% | |||
Total Return Bond ETF | 0.50% | |||
Variable Rate Investment Grade ETF | 0.30% |
Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Funds, including payments to the AffiliatedSub-Advisers for each Fund (except S&P 500® Downside Hedged ETF), and for each Fund the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.
Pursuant to another Investment Advisory Agreement, Ultra Short Duration ETF accrues daily and pays monthly to the Adviser an annual management fee equal to 0.20% of the Fund’s average daily net assets. Ultra Short Duration ETF is responsible for all of its own expenses, including its management fee, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, Acquired Fund Fees and Expenses, if any, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members and officers who are not “interested persons” of the Trust or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for those members of the Board who are not “interested persons” of the Trust and extraordinary expenses.
The Adviser has entered into an InvestmentSub-Advisory Agreement with the AffiliatedSub-Advisers for each Fund (except S&P 500® Downside Hedged ETF). Thesub-advisory fee for these Funds is paid by the Adviser to the AffiliatedSub-Advisers at 40% of the Adviser’s compensation of thesub-advised assets of each Fund.
The Adviser has agreed to waive fees and/or pay Fund expenses for Ultra Short Duration ETF to the extent necessary to prevent the operating expenses of the Fund (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, taxes and extraordinary expenses) from exceeding 0.27% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2021.
Additionally, through at least August 31, 2021, the Adviser has contractually agreed to waive a portion of the Total Return Bond ETF and the Ultra Short Duration ETF’s management fee and/or reimburse Fund expenses for each Fund in an amount equal to 100% of the net advisory fees that an affiliated person of the Adviser (an “Affiliated Person”) or the Adviser receives that are attributable to each Fund’s investments in any other fund managed by such Affiliated Person or the Adviser. This waiver will have the effect of reducing the Acquired Fund Fees and Expenses that are indirectly borne by each Fund. The Adviser cannot discontinue this waiver prior to its expiration.
Further, through at least August 31, 2021, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). There is no guarantee that the Adviser will extend the waiver of these fees past that date.
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The Adviser has agreed to waive a portion of its unitary management fee to the extent necessary to prevent Total Return Bond ETF operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, Acquired Fund Fees and Expenses, if any, taxes and litigation expenses, and extraordinary expenses) from exceeding the management fee through at least April 6, 2020.
Additionally, Variable Rate Investment Grade ETF may invest in other ETFs managed by the Adviser, and the indirect portion of the management fee that such Fund incurs through such investments is in addition to the Adviser’s unitary management fee. Therefore, the Adviser also has agreed to waive, through August 31, 2021, the management fees that it receives under the unitary management fee from Variable Rate Investment Grade ETF in an amount equal to the indirect management fees that the Fund incurs through its investments in affiliated ETFs managed by the Adviser. There is no guarantee that the Adviser will extend this waiver past that date.
For the year ended October 31, 2019, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Active U.S. Real Estate ETF | $ | 103 | ||||
Balanced Multi-Asset Allocation ETF | 3 | |||||
Conservative Multi-Asset Allocation ETF | 9 | |||||
Growth Multi-Asset Allocation ETF | 3 | |||||
Moderately Conservative Multi-Asset Allocation ETF | 4 | |||||
S&P 500®Downside Hedged ETF | 11,725 | |||||
Total Return Bond ETF | - | |||||
Ultra Short Duration ETF | - | |||||
Variable Rate Investment Grade ETF | 19,347 |
The fees waived and/or expenses borne by the Adviser for Ultra Short Duration ETF pursuant to the Expense Cap are subject to recapture by the Adviser 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 Fund if it would result in the Fund 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.
There are no amounts available for potential recapture by the Adviser as of October 31, 2019.
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 Trust has entered into service agreements whereby The Bank of New York Mellon, 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 or are unreliable. 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 a Fund’s own 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. |
Except for the Funds listed below, as of October 31, 2019, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). 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.
93 | ||||
|
| |||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
S&P 500®Downside Hedged ETF | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
Common Stocks & Other Equity Interests | $ | 15,526,812 | $ | - | $ | - | $ | 15,526,812 | ||||||||||||||
Money Market Funds | 1,845,187 | - | - | 1,845,187 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments in Securities | 17,371,999 | - | - | 17,371,999 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Assets(a) | ||||||||||||||||||||||
Futures Contracts | 65,182 | - | - | 65,182 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Liabilities(a) | ||||||||||||||||||||||
Futures Contracts | (29,734 | ) | - | - | (29,734 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Other Investments | 35,448 | - | - | 35,448 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments | $ | 17,407,447 | $ | - | $ | - | $ | 17,407,447 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Return Bond ETF | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
U.S. Treasury Securities | $ | - | $ | 61,976,605 | $ | - | $ | 61,976,605 | ||||||||||||||
U.S. Dollar Denominated Bonds & Notes | - | 61,084,399 | - | 61,084,399 | ||||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | - | 36,143,961 | - | 36,143,961 | ||||||||||||||||||
Asset-Backed Securities | - | 13,211,157 | - | 13,211,157 | ||||||||||||||||||
U.S. Government Sponsored Agency Securities | - | 2,987,216 | - | 2,987,216 | ||||||||||||||||||
Agency Credit Risk Transfer Notes | - | 703,401 | - | 703,401 | ||||||||||||||||||
Municipal Obligations | - | 650,263 | - | 650,263 | ||||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | - | 547,900 | - | 547,900 | ||||||||||||||||||
Preferred Stocks | 401,527 | - | - | 401,527 | ||||||||||||||||||
Open Exchanged-Traded Index Options Purchased | 45,300 | - | - | 45,300 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments in Securities | 446,827 | 177,304,902 | - | 177,751,729 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Assets(a) | ||||||||||||||||||||||
Forward Foreign Currency Contracts | - | 133 | - | 133 | ||||||||||||||||||
Futures Contracts | 131,568 | - | - | 131,568 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
131,568 | 133 | - | 131,701 | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Liabilities(a) | ||||||||||||||||||||||
Futures Contracts | (24,493 | ) | - | - | (24,493 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Other Investments | 107,075 | 133 | - | 107,208 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments | $ | 553,902 | $ | 177,305,035 | $ | - | $ | 177,858,937 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Ultra Short Duration ETF | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | $ | - | $ | 1,406,515,817 | $ | - | $ | 1,406,515,817 | ||||||||||||||
Asset-Backed Securities | - | 437,660,484 | - | 437,660,484 | ||||||||||||||||||
Non-U.S. Dollar Denominated Bonds & Notes | - | 50,338,479 | - | 50,338,479 | ||||||||||||||||||
Certificates of Deposit | - | 20,003,168 | - | 20,003,168 | ||||||||||||||||||
U.S. Government Sponsored Agency Securities | - | 19,982,725 | - | 19,982,725 | ||||||||||||||||||
U.S. Treasury Securities | - | 19,939,996 | - | 19,939,996 | ||||||||||||||||||
Variable Rate Senior Loan Interests | - | 1,993,686 | - | 1,993,686 | ||||||||||||||||||
Commercial Paper | - | 560,453,914 | - | 560,453,914 | ||||||||||||||||||
Repurchase Agreements | - | 122,000,000 | - | 122,000,000 | ||||||||||||||||||
Money Market Funds | 1,262,485 | - | - | 1,262,485 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments in Securities | 1,262,485 | 2,638,888,269 | - | 2,640,150,754 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Assets(a) | ||||||||||||||||||||||
Forward Foreign Currency Contracts | - | 163,542 | - | 163,542 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Other Investments - Liabilities(a) | ||||||||||||||||||||||
Forward Foreign Currency Contracts | - | (223,286 | ) | - | (223,286 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Other Investments | - | (59,744 | ) | - | (59,744 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments | $ | 1,262,485 | $ | 2,638,828,525 | $ | - | $ | 2,640,091,010 | ||||||||||||||
|
|
|
|
|
|
|
|
94 | ||||
|
| |||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Variable Rate Investment Grade ETF | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
U.S. Dollar Denominated Bonds & Notes | $ | - | $ | 176,314,440 | $ | - | $ | 176,314,440 | ||||||||||||||
Asset-Backed Securities | - | 74,843,389 | - | 74,843,389 | ||||||||||||||||||
Agency Credit Risk Transfer Notes | - | 57,666,038 | - | 57,666,038 | ||||||||||||||||||
U.S. Treasury Securities | - | 32,080,909 | - | 32,080,909 | ||||||||||||||||||
U.S. Government Sponsored Agency Mortgage-Backed Securities | - | 30,391,740 | - | 30,391,740 | ||||||||||||||||||
Exchange-Traded Funds | 7,719,000 | - | - | 7,719,000 | ||||||||||||||||||
Commercial Paper | - | 9,997,750 | - | 9,997,750 | ||||||||||||||||||
Money Market Funds | 4,141,764 | - | - | 4,141,764 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Investments | $ | 11,860,764 | $ | 381,294,266 | $ | - | $ | 393,155,030 | ||||||||||||||
|
|
|
|
|
|
|
|
(a) | Futures contracts and forward foreign currency contracts are valued at unrealized appreciation (depreciation). |
NOTE 5–Derivative Investments
The Funds may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions andclose-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Funds do not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statements of Assets and Liabilities.
Value of Derivative Investments atPeriod-End
The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2019:
Value | ||||||||||||||||||||||||||||||||
S&P 500® Downside Hedged ETF | Total Return Bond ETF | Ultra Short Duration ETF | ||||||||||||||||||||||||||||||
Derivative Assets | Equity Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | Currency Risk | ||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts outstanding(a) | $ | - | $ | 133 | $ | - | $ | - | $ | 133 | $ | 163,542 | ||||||||||||||||||||
Unrealized appreciation on futures contracts - Exchange-Traded(b) | 65,182 | - | - | 131,568 | 131,568 | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Purchased options, at value - Exchange-Traded | - | - | 45,300 | - | 45,300 | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Derivative Assets | 65,182 | 133 | 45,300 | 131,568 | 177,001 | 163,542 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Derivatives not subject to master netting agreements | (65,182 | ) | - | (45,300 | ) | (131,568 | ) | (176,868 | ) | - | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Derivative Assets subject to master netting agreements | $ | - | $ | 133 | $ | - | $ | - | $ | 133 | $ | 163,542 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
95 | ||||
|
| |||
Value | ||||||||||||||||||||||||||||||
S&P 500® Downside Hedged ETF | Total Return Bond ETF | Ultra Short Duration ETF | ||||||||||||||||||||||||||||
Derivative Liabilities | Equity Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | Currency Risk | ||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts outstanding(a) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (223,286 | ) | |||||||||||||||||
Unrealized depreciation on futures contracts–Exchange-Traded(b) | (29,734 | ) | - | - | (24,493 | ) | (24,493 | ) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total Derivative Liabilities | (29,734 | ) | - | - | (24,493 | ) | (24,493 | ) | (223,286 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Derivatives not subject to master netting agreements | 29,734 | - | - | 24,493 | 24,493 | - | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total Derivative Liabilities subject to master netting agreements | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (223,286 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Values are disclosed on the Statements of Assets and Liabilities under the caption Unrealized appreciation on forward foreign currency contracts outstanding and Unrealized depreciation on forward foreign currency contracts outstanding. |
(b) | Except for Total Return Bond ETF, values are disclosed on the Statements of Assets and Liabilities under the caption Unrealized appreciation on futures contracts and Unrealized depreciation on futures contracts. For Total Return Bond ETF, values include cumulative appreciation (depreciation) on futures contracts. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Funds’ exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2019:
Total Return Bond ETF | ||||||||||||||||||||||||||||||
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||
Counterparty | Forward foreign currency contracts | Forward foreign currency contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||
Goldman Sachs International | $ | 133 | $ | - | $ | 133 | $ | - | $ | - | $ | 133 |
Ultra Short Duration ETF | ||||||||||||||||||||||||||||||
Financial Derivative Assets | Financial Derivative Liabilities | Collateral (Received)/Pledged | ||||||||||||||||||||||||||||
Counterparty | Forward foreign currency contracts | Forward foreign currency contracts | Net Value of Derivatives | Non-Cash | Cash | Net Amount | ||||||||||||||||||||||||
Goldman Sachs International | $ | - | $ | (49,816 | ) | $ | (49,816 | ) | $ | - | $ | - | $ | (49,816 | ) | |||||||||||||||
Royal Bank of Canada | 163,542 | (173,470 | ) | (9,928 | ) | - | - | (9,928 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total | $ | 163,542 | $ | (223,286 | ) | $ | (59,744 | ) | $ | - | $ | - | $ | (59,744 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Derivative Investments for the Fiscal Year Ended October 31, 2019
The table below summarizes each Fund’s gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statements of Operations | ||||||||||||||||||||||||||||||
S&P 500® Downside Hedged ETF | Total Return Bond ETF | Ultra Short Duration ETF | ||||||||||||||||||||||||||||
Equity Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | Currency Risk | |||||||||||||||||||||||||
Realized Gain (Loss): | ||||||||||||||||||||||||||||||
Forward foreign currency contracts | $ | - | $ | 6,491 | $ | - | $ | - | $ | 6,491 | $ | (751,100 | ) | |||||||||||||||||
Futures contracts | (1,698,362 | ) | - | - | (1,298,793 | ) | (1,298,793 | ) | - | |||||||||||||||||||||
Options purchased(a) | - | - | (12,142 | ) | - | (12,142 | ) | - | ||||||||||||||||||||||
Options written | - | - | (1,753 | ) | - | (1,753 | ) | - |
96 | ||||
|
| |||
Location of Gain (Loss) on Statements of Operations | ||||||||||||||||||||||||||||||
S&P 500® Downside Hedged ETF | Total Return Bond ETF | Ultra Short Duration ETF | ||||||||||||||||||||||||||||
Equity Risk | Currency Risk | Equity Risk | Interest Rate Risk | Total | Currency Risk | |||||||||||||||||||||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||||||||||||||||||||||||
Forward foreign currency contracts | $ | - | $ | 133 | $ | - | $ | - | $ | 133 | $ | (87,327 | ) | |||||||||||||||||
Futures contracts | (179,028 | ) | - | - | 32,545 | 32,545 | - | |||||||||||||||||||||||
Options purchased(a) | - | - | 19,294 | - | 19,294 | - | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total | $ | (1,877,390 | ) | $ | 6,624 | $ | 5,399 | $ | (1,266,248 | ) | $ | (1,254,225 | ) | $ | (838,427 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) on investment securities. |
The table below summarizes the average notional value of derivatives held during the period.
Average Notional Value | |||||||||||||||
S&P 500® Downside Hedged ETF | Total Return Bond ETF(a) | Ultra Short Duration ETF(b) | |||||||||||||
Forward foreign currency contracts | $ | - | $ | 154,369 | $ | 21,845,848 | |||||||||
Futures contracts | 8,086,249 | 29,631,689 | - | ||||||||||||
Options purchased | - | 546,838 | - | ||||||||||||
Options written | - | 42,308 | - |
(a) | For Total Return Bond ETF, the amounts listed for forward foreign currency contracts and options written represent a seven month and a one month average notional value, respectively. |
(b) | For Ultra Short Duration ETF, the amount listed for forward foreign currency contracts represents a five month average notional value. |
NOTE 6–Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2019 and 2018:
2019 | 2018 | |||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | |||||||||||||||||
Active U.S. Real Estate ETF | $ | 1,794,273 | $ | - | $ | 457,566 | $ | - | ||||||||||||
Balanced Multi-Asset Allocation ETF | 92,586 | 1,912 | 41,471 | - | ||||||||||||||||
Conservative Multi-Asset Allocation ETF | 181,438 | - | 43,324 | - | ||||||||||||||||
Growth Multi-Asset Allocation ETF | 118,384 | 3,618 | 37,124 | - | ||||||||||||||||
Moderately Conservative Multi-Asset Allocation ETF | 124,458 | - | 40,004 | - | ||||||||||||||||
S&P 500®Downside Hedged ETF | 483,318 | - | 438,757 | - | ||||||||||||||||
Variable Rate Investment Grade ETF | 13,248,198 | - | 8,510,280 | - |
Tax Character of Distributions to Shareholders Paid During the Fiscal Year Ended October 31, 2019, the Period September 1, 2018 through October 31, 2018 and the Fiscal Year Ended August 31, 2018.
October 31, 2019 | October 31, 2018 | August 31, 2018 | ||||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||||
Total Return Bond ETF | $ | 2,364,655 | $ | 262,621 | $ | 254,440 | $ | - | $ | 1,805,880 | $ | 98,381 |
Tax Character of Distributions to Shareholders Paid During the Fiscal Year Ended October 31, 2019, the Period June 1, 2018 to October 31, 2018 and the Fiscal Year Ended May 31, 2018:
October 31, 2019 | October 31, 2018 | May 31, 2018 | ||||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||||
Ultra Short Duration ETF | $ | 63,523,056 | $ | 207,907 | $ | 15,247,637 | $ | - | $ | 22,054,804 | $ | - |
97 | ||||
|
| |||
Tax Components of Net Assets at FiscalYear-End:
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Temporary Book/Tax Differences | Net Unrealized Appreciation- Investments | Net Unrealized Appreciation (Depreciation)- Other Investments | Capital Loss Carryforwards | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||||||||||
Active U.S. Real Estate ETF | $ | - | $ | - | $ | - | $ | 6,163,955 | $ | - | $ | (105,383 | ) | $ | 115,492,974 | $ | 121,551,546 | |||||||||||||||||||||||
Balanced Multi-Asset Allocation ETF | 62,718 | 84,007 | - | 34,069 | - | - | 4,065,583 | 4,246,377 | ||||||||||||||||||||||||||||||||
Conservative Multi-Asset Allocation ETF | 99,403 | 3,503 | - | 82,817 | - | - | 3,719,446 | 3,905,169 | ||||||||||||||||||||||||||||||||
Growth Multi-Asset Allocation ETF | 135,959 | 17,757 | - | 142,076 | - | - | 4,104,244 | 4,400,036 | ||||||||||||||||||||||||||||||||
Moderately Conservative Multi-Asset Allocation ETF | 120,093 | 57,851 | - | 180,985 | - | - | 5,157,559 | 5,516,488 | ||||||||||||||||||||||||||||||||
S&P 500®Downside Hedged ETF | 86,735 | - | - | - | - | (78,116,620 | ) | 98,067,278 | 20,037,393 | |||||||||||||||||||||||||||||||
Total Return Bond ETF | 964,914 | - | - | 3,422,396 | 2,113 | - | 172,393,362 | 176,782,785 | ||||||||||||||||||||||||||||||||
Ultra Short Duration ETF | 1,497,317 | 401,970 | (11,858 | ) | 10,755,457 | (180,504 | ) | - | 2,609,321,934 | 2,621,784,316 | ||||||||||||||||||||||||||||||
Variable Rate Investment Grade ETF | 149,861 | - | - | 357,629 | - | (4,320,771 | ) | 395,340,075 | 391,526,794 |
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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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 following table presents available capital loss carryforwards for each Fund as of October 31, 2019:
No expiration | ||||||||||||
Short-Term | Long-Term | Total* | ||||||||||
Active U.S. Real Estate ETF | $ | 105,383 | $ | - | $ | 105,383 | ||||||
Balanced Multi-Asset Allocation ETF | - | - | - | |||||||||
Conservative Multi-Asset Allocation ETF | - | - | - | |||||||||
Growth Multi-Asset Allocation ETF | - | - | - | |||||||||
Moderately Conservative Multi-Asset Allocation ETF | - | - | - | |||||||||
S&P 500®Downside Hedged ETF | 25,057,096 | 53,059,524 | 78,116,620 | |||||||||
Total Return Bond ETF | - | - | - | |||||||||
Ultra Short Duration ETF | - | - | - | |||||||||
Variable Rate Investment Grade ETF | 2,105,385 | 2,215,386 | 4,320,771 |
* | Capital loss carryforwards as of the date listed above 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 7–Investment Transactions
For the fiscal year ended October 31, 2019, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds andin-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
Active U.S. Real Estate ETF | $ | 17,816,926 | $ | 17,685,902 | ||||
Balanced Multi-Asset Allocation ETF | 2,263,101 | 2,245,942 | ||||||
Conservative Multi-Asset Allocation ETF | 1,639,954 | 1,624,401 | ||||||
Growth Multi-Asset Allocation ETF | 3,340,956 | 3,345,715 | ||||||
Moderately Conservative Multi-Asset Allocation ETF | 2,620,231 | 2,601,993 | ||||||
S&P 500®Downside Hedged ETF | 139,528,193 | 150,376,406 |
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Purchases | Sales | |||||||
Total Return Bond ETF | $ | 245,730,987 | $ | 181,795,850 | ||||
Ultra Short Duration ETF | 1,196,614,881 | 369,473,887 | ||||||
Variable Rate Investment Grade ETF | 159,505,882 | 209,625,844 |
For the fiscal year ended October 31, 2019, the cost of securities purchased and proceeds from sales of U.S. Treasury obligations (other than short-term securities, money market funds andin-kind transactions), were as follows:
Purchases | Sales | |||||||
Total Return Bond ETF | $ | 262,805,276 | $ | 202,700,401 | ||||
Ultra Short Duration ETF | - | 72,933,555 | ||||||
Variable Rate Investment Grade ETF | 91,792,801 | 107,903,277 |
For the fiscal year ended October 31, 2019,in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Active U.S. Real Estate ETF | $ | 110,646,615 | $ | 27,931,377 | ||||
Balanced Multi-Asset Allocation ETF | 13,724,058 | 12,763,352 | ||||||
Conservative Multi-Asset Allocation ETF | 13,452,666 | 11,575,500 | ||||||
Growth Multi-Asset Allocation ETF | 2,695,845 | 1,400,943 | ||||||
Moderately Conservative Multi-Asset Allocation ETF | 3,906,850 | - | ||||||
S&P 500®Downside Hedged ETF | 12,284,613 | 6,825,644 | ||||||
Total Return Bond ETF | - | - | ||||||
Ultra Short Duration ETF | - | - | ||||||
Variable Rate Investment Grade ETF | - | - |
Gains (losses) onin-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At October 31, 2019, the aggregate cost of investments, including any derivatives, on a tax basis includes adjustments for financial reporting purposes as of the most recently completed federal income tax reportingperiod-end:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation | Cost | |||||||||||||||||
Active U.S. Real Estate ETF | $ | 7,765,320 | $ | (1,601,365 | ) | $ | 6,163,955 | $ | 116,615,428 | |||||||||||
Balanced Multi-Asset Allocation ETF | 50,884 | (16,815 | ) | 34,069 | 5,435,234 | |||||||||||||||
Conservative Multi-Asset Allocation ETF | 87,832 | (5,015 | ) | 82,817 | 4,913,343 | |||||||||||||||
Growth Multi-Asset Allocation ETF | 163,221 | (21,145 | ) | 142,076 | 5,226,346 | |||||||||||||||
Moderately Conservative Multi-Asset Allocation ETF | 190,021 | (9,036 | ) | 180,985 | 6,385,428 | |||||||||||||||
S&P 500®Downside Hedged ETF | 765,041 | (765,041 | ) | - | 17,407,447 | |||||||||||||||
Total Return Bond ETF | 4,075,442 | (653,046 | ) | 3,422,396 | 174,436,541 | |||||||||||||||
Ultra Short Duration ETF | 11,410,919 | (655,462 | ) | 10,755,457 | 2,629,335,553 | |||||||||||||||
Variable Rate Investment Grade ETF | 1,293,126 | (935,497 | ) | 357,629 | 392,797,401 |
NOTE 8–Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment ofin-kind transactions, distributions, partnerships, paydowns 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, 2019, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Active U.S. Real Estate ETF | $ | 274,164 | $ | (5,804,103 | ) | $ | 5,529,939 | ||||||||
Balanced Multi-Asset Allocation ETF | 4 | (498,139 | ) | 498,135 | |||||||||||
Conservative Multi-Asset Allocation ETF | - | (585,483 | ) | 585,483 | |||||||||||
Growth Multi-Asset Allocation ETF | 334 | (147,083 | ) | 146,749 | |||||||||||
Moderately Conservative Multi-Asset Allocation ETF | - | - | - | ||||||||||||
S&P 500®Downside Hedged ETF | - | - | - |
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Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Total Return Bond ETF | $ | 14,307 | $ | (14,307 | ) | $ | - | ||||||||
Ultra Short Duration ETF | 434,410 | (434,410 | ) | - | |||||||||||
Variable Rate Investment Grade ETF | 963,995 | (988,641 | ) | 24,646 |
NOTE 9–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 each Fund’s unitary management fee, pays for such compensation for each Fund (except for Ultra Short Duration ETF). The Trustee who is an “interested person” of the Trust does 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 Funds. The Deferral Fees payable to a Participating Trustee are valued as of the date such Deferral Fees would have been paid to the 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.
NOTE 10–Capital
Shares are issued and redeemed by each Fund only in Creation Units of (i) 100,000 Shares for each of Balanced Multi-Asset Allocation ETF, Conservative Multi-Asset Allocation ETF, Growth Multi-Asset Allocation ETF, Moderately Conservative Multi-Asset Allocation ETF and Ultra Short Duration ETF; and (ii) 50,000 Shares for each of Active U.S. Real Estate ETF, S&P 500® Downside Hedged ETF, Total Return Bond ETF and Variable Rate Investment Grade ETF. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. For Active U.S. Real Estate ETF, Balanced Multi-Asset Allocation ETF, Conservative Multi-Asset Allocation ETF, Growth Multi-Asset Allocation ETF and Moderately Conservative Multi-Asset Allocation ETF, such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of the Fund of the Trust on the transaction date. For Total Return Bond ETF, Ultra Short Duration ETF and Variable Rate Investment Grade ETF, Creation Units are issued and redeemed principally in exchange for the deposit or delivery of cash. For S&P 500® Downside Hedged ETF, Creation Units are issued and redeemed partially in exchange for the deposit or delivery of cash and partially in exchange for Deposit Securities. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
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 Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’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.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Actively Managed Exchange-Traded Fund Trust and Shareholders of each of the nine 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 (nine of the funds constituting Invesco Actively Managed Exchange-Traded Fund Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2019, the related statements of operations for the year ended October 31, 2019, the statements 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 in the table below (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, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated in the table below, and each of the financial highlights for each of the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.
Fund Name | Predecessor Fund | |||
Invesco Active U.S. Real Estate ETF(1) | - | |||
Invesco Balanced Multi-Asset Allocation ETF(2) | - | |||
Invesco Conservative Multi-Asset Allocation ETF(2) | - | |||
Invesco Growth Multi-Asset Allocation ETF(2) | - | |||
Invesco Moderately Conservative Multi-Asset Allocation ETF(2) | - | |||
Invesco S&P 500 Downside Hedged ETF(1) | - | |||
Invesco Total Return Bond ETF(3) | Guggenheim Total Return Bond ETF | |||
Invesco Ultra Short Duration ETF(4) | Guggenheim Ultra Short Duration ETF | |||
Invesco Variable Rate Investment Grade ETF(5) | - |
(1) Statements of changes in net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the five years in the period ended October 31, 2019
(2) Statements of changes in net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the two years in the period ended October 31, 2019 and for the period February 21, 2017 (commencement of investment operations) through October 31, 2017
(3) Statements of changes in net assets and the financial highlights for the year ended October 31, 2019, for the period September 1, 2018 through October 31, 2018 and for the year ended August 31, 2018
(4) Statements of changes in net assets and the financial highlights for the year ended October 31, 2019, for the period June 1, 2018 through October 31, 2018 and for the year ended May 31, 2018
(5) Statements of changes in net assets for each of the two years in the period ended October 31, 2019 and the financial highlights for each of the three years in the period ended October 31, 2019 and for the period September 20, 2016 (commencement of investment operations) through October 31, 2016
The financial statements of the Invesco Total Return Bond ETF (Predecessor Fund: Guggenheim Total Return Bond ETF) as of and for the year ended August 31, 2017 and the financial highlights for each of the periods ended on or prior to August 31, 2017 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated October 30, 2017 expressed an unqualified opinion on those financial statements and financial highlights.
The financial statements of the Invesco Ultra Short Duration ETF (Predecessor Fund: Guggenheim Ultra Short Duration ETF) as of and for the year ended May 31, 2017 and the financial highlights for each of the periods ended on or prior to May 31, 2017 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated July 31, 2017 expressed an unqualified opinion on those financial statements and financial highlights.
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Report of Independent Registered Public Accounting Firm–(continued)
Basis for Opinions
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, 2019 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, 2019
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.
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Calculating your ongoing Fund expenses
Example
As a shareholder of a Fund of the Invesco Actively Managed Exchange-Traded Fund Trust (excluding Invesco Ultra Short Duration ETF), you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. As a shareholder of the Invesco Ultra Short Duration ETF, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2019 through October 31, 2019.
In addition to the fees and expenses which the Invesco Balanced Multi-Asset Allocation ETF, Invesco Conservative Multi-Asset Allocation ETF, Invesco Growth Multi-Asset Allocation ETF, Invesco Moderately Conservative Multi-Asset Allocation ETF, Invesco S&P 500® Downside Hedged ETF and the Invesco Total Return Bond ETF (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invest in. The effect of the estimated investment companies’ expenses that the Portfolios bear indirectly is included in each Portfolio’s total return.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During theSix-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value May 1, 2019 | Ending Account Value October 31, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||||||
Invesco Active U.S. Real Estate ETF (PSR) | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,111.90 | 0.35 | % | $ | 1.86 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.44 | 0.35 | 1.79 | ||||||||||||||||
Invesco Balanced Multi-Asset Allocation ETF (PSMB) | ||||||||||||||||||||
Actual | 1,000.00 | 1,035.80 | 0.09 | 0.46 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.75 | 0.09 | 0.46 |
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Calculating your ongoing Fund expenses–(continued)
Beginning Account Value May 1, 2019 | Ending Account Value October 31, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||||||
Invesco Conservative Multi-Asset Allocation ETF (PSMC) | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,038.90 | 0.13 | % | $ | 0.67 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.55 | 0.13 | 0.66 | ||||||||||||||||
Invesco Growth Multi-Asset Allocation ETF (PSMG) | ||||||||||||||||||||
Actual | 1,000.00 | 1,034.60 | 0.10 | 0.51 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.70 | 0.10 | 0.51 | ||||||||||||||||
Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM) | ||||||||||||||||||||
Actual | 1,000.00 | 1,040.60 | 0.10 | 0.51 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.70 | 0.10 | 0.51 | ||||||||||||||||
Invesco S&P 500®Downside Hedged ETF (PHDG) | ||||||||||||||||||||
Actual | 1,000.00 | 943.10 | 0.36 | 1.76 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.39 | 0.36 | 1.84 | ||||||||||||||||
Invesco Total Return Bond ETF (GTO) | ||||||||||||||||||||
Actual | 1,000.00 | 1,063.00 | 0.50 | 2.60 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.68 | 0.50 | 2.55 | ||||||||||||||||
Invesco Ultra Short Duration ETF (GSY) | ||||||||||||||||||||
Actual | 1,000.00 | 1,016.10 | 0.23 | 1.17 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.05 | 0.23 | 1.17 | ||||||||||||||||
Invesco Variable Rate Investment Grade ETF (VRIG) | ||||||||||||||||||||
Actual | 1,000.00 | 1,015.60 | 0.29 | 1.47 | ||||||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.74 | 0.29 | 1.48 |
(1) | Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for thesix-month period ended October 31, 2019. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365. Expense ratios for the most recentsix-month period may differ from expense ratios based on the annualized data in the Financial Highlights. |
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Tax Information
Form1099-DIV, Form1042-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, 2019:
Qualified Business Income* | Qualified Dividend Income* | Corporate Dividends- Received Deduction* | U.S. Treasury Obligations* | Qualified Interest Income* | Long Term Capital Gains | Qualified Short Term Gains | |||||||||||||||||||||||||||||
Invesco Active U.S. Real Estate ETF | 82 | % | 0 | % | 0 | % | 0 | % | 82 | % | $ | - | $ | - | |||||||||||||||||||||
Invesco Balanced Multi- Asset Allocation ETF | 0 | % | 14 | % | 7 | % | 0 | % | 0 | % | $ | 1,912 | $ | - | |||||||||||||||||||||
Invesco Conservative Multi- Asset Allocation ETF | 0 | % | 1 | % | 1 | % | 0 | % | 0 | % | $ | - | $ | - | |||||||||||||||||||||
Invesco Growth Multi- Asset Allocation ETF | 0 | % | 16 | % | 8 | % | 0 | % | 0 | % | $ | 3,618 | $ | - | |||||||||||||||||||||
Invesco Moderately Conservative Multi- Asset Allocation ETF | 0 | % | 6 | % | 4 | % | 0 | % | 0 | % | $ | - | $ | - | |||||||||||||||||||||
Invesco S&P 500®Downside Hedged ETF | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | $ | - | $ | - | |||||||||||||||||||||
Invesco Total Return Bond ETF | 0 | % | 1 | % | 1 | % | 13 | % | 50 | % | $ | 262,621 | $ | 502,224 |
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Tax Information–(continued)
Qualified Business Income* | Qualified Dividend Income* | Corporate Dividends- Received Deduction* | U.S. Treasury Obligations* | Qualified Interest Income* | Long Term Capital Gains | Qualified Short Term Gains | |||||||||||||||||||||||||||||
Invesco Ultra Short Duration ETF | 0 | % | 0 | % | 0 | % | 2 | % | 77 | % | $ | 207,907 | $ | - | |||||||||||||||||||||
Invesco Variable Rate Investment Grade ETF | 0 | % | 0 | % | 0 | % | 7 | % | 82 | % | $ | - | $ | - |
* | The above percentages are based on ordinary income dividends paid to shareholders during the fiscal year. |
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Proxy Results
INVESCO ACTIVELY MANAGED EXCHANGE-TRADED FUND TRUST
A Special Meeting (“Meeting”) of Shareholders of Invesco Actively Managed Exchange-Traded Fund Trust was held on August 19, 2019. The Meeting was held for the following purpose:
(1). | To elect ten (10) trustees to the Board of Trustees of the Trust. |
The results of the voting on the above matter was as follows:
Matter | Votes For | Votes Withheld | ||||||||
(1). | Ronn R. Bagge | 62,463,637.92 | 1,319,686.88 | |||||||
Todd J. Barre | 62,507,500.00 | 1,275,824.80 | ||||||||
Kevin M. Carome | 62,017,022.47 | 1,766,302.33 | ||||||||
Edmund P. Giambastiani, Jr. | 62,044,302.33 | 1,739,022.47 | ||||||||
Victoria J. Herget | 62,656,861.19 | 1,126,463.61 | ||||||||
Marc M. Kole | 62,490,501.16 | 1,292,823.64 | ||||||||
Yung Bong Lim | 62,626,873.38 | 1,156,451.42 | ||||||||
Joanne Pace | 62,204,074.73 | 1,579,250.07 | ||||||||
Gary R. Wicker | 62,047,813.46 | 1,735,511.34 | ||||||||
Donald H. Wilson | 62,016,987.42 | 1,766,337.38 |
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Trustees and Officers
The Independent Trustees of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by each Independent Trustee are shown below.
As of October 31, 2019
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships | |||||
Ronn R. Bagge—1958 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice Chairman of the Board; Chairman of the Nominating and Governance Committee and Trustee | Vice Chairman since 2018; Chairman of the Nominating and Governance Committee and Trustee since 2008 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly, Owner/CEO, Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider). | 246 | Trustee and Investment Oversight Committee member, Mission Aviation Fellowship (2017-Present). | |||||
Todd J. Barre—1957 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); formerly, Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank. | 246 | None | |||||
Edmund P. Giambastiani, Jr.—1948 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2019 | President, Giambastiani Group LLC (national security and energy consulting) (2007-Present); Director, The Boeing Company (2009-Present); Trustee, MITRE Corporation (federally-funded research development) (2008-Present); Director, THL Credit, Inc. (alternative credit investment manager) (2016-Present); Trustee, U.S. Naval Academy Foundation Athletic & Scholarship Program (2010-Present); Advisory Board Member, Massachusetts Institute of Technology Lincoln Laboratory (federally-funded research development) (2010-Present); Defense Advisory Board Member, Lawrence Livermore National Laboratory (2013-Present); formerly, Chairman (2015-2016), Lead | 246 | Formerly, Trustee, certain funds of the Oppenheimer Funds complex (2013-2019); Director, Mercury Defense Systems Inc. (information technology) (2011-2013); Independent Director, QinetiQ Group Plc (defense technology and security) (2008-2011); Chairman, Alenia North America, Inc. |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships | |||||
Director (2011-2015) and Director (2008-2011), Monster Worldwide, Inc. (career services); Advisory Board Member, Maxwell School of Citizenship and Public Affairs of Syracuse University (2012-2016); United States Navy, career nuclear submarine officer (1970-2007); Seventh Vice Chairman of the Joint Chiefs of Staff (2005-2007); first NATO Supreme Allied Commander Transformation (2003-2005); Commander, U.S. Joint Forces Command (2002-2005). | (military and defense products) (2008-2009); Director, SRA International, Inc. (information technology and services) (2008- 2011). | |||||||||
Victoria J. Herget—1951 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2019 | Formerly, Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978), Zurich Scudder Investments (investment adviser) (and its predecessor firms). | 246 | Trustee (2000-Present) and Chair (2010-2017), Newberry Library; Trustee, Mather LifeWays (2001-Present); Trustee, Chikaming Open Lands (2014-Present); formerly, Trustee, certain funds in the Oppenheimer Funds complex (2012-2019); Board Chair (2008-2015) and Director (2004-2018), United Educators Insurance Company; Independent Director, First American Funds (2003-2011); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships | |||||
member (2007- 2010), Wellesley College; Trustee, BoardSource (2006-2009); Trustee, Chicago City Day School (1994-2005). | ||||||||||
Marc M. Kole—1960 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee and Trustee since 2008 | Senior Director of Finance, By The Hand Club for Kids(not-for-profit) (2015-Present); formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Regional Chief Financial Officer, United Healthcare (2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 246 | Treasurer (2018-Present), Finance Committee Member (2015-Present) and Audit Committee Member (2015), Thornapple Evangelical Covenant Church; formerly, Board and Finance Committee Member (2009-2017) and Treasurer (2010-2015, 2017), NorthPointe Christian Schools. | |||||
Yung Bong Lim—1964 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, RDG Funds LLC (real estate) (2008-Present); formerly, Managing Director, Citadel LLC (1999-2007). | 246 | Advisory Board Member, Performance Trust Capital Partners, LLC (2008-Present); Board Director, Beacon Power Services, Corp. (2019-Present). |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships | |||||
Joanne Pace—1958 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2019 | Formerly, Senior Advisor, SECOR Asset Management, LP (2010-2011); Managing Director and Chief Operating Officer, Morgan Stanley Investment Management (2006-2010); Partner and Chief Operating Officer, FrontPoint Partners, LLC (alternative investments) (2005-2006); Managing Director (2003-2005), Global Head of Human Resources and member of Executive Board and Operating Committee (2004-2005), Global Head of Operations and Product Control (2003-2004), Credit Suisse (investment banking); Managing Director (1997-2003), Controller and Principal Accounting Officer (1999-2003), Chief Financial Officer (temporary assignment) for the Oversight Committee, Long Term Capital Management (1998-1999), Morgan Stanley. | 246 | Board Director, Horizon Blue Cross Blue Shield of New Jersey (2012-Present); Advisory Board Director, The Alberleen Group LLC (2012-Present); Governing Council Member (2016-Present) and Chair of Education Committee (2017-Present), Independent Directors Council (IDC); Board Member, 100 Women in Finance (2015-Present); Advisory Council Member, Morgan Stanley Children’s Hospital (2012- Present); formerly, Trustee, certain funds in the Oppenheimer Funds complex (2012-2019); Lead Independent Director and Chair of the Audit and Nominating Committee of The Global Chartist Fund, LLC, Oppenheimer Asset Management (2011-2012); Board Director, Managed Funds Association (2008-2010); Board Director (2007-2010) and Investment Committee Chair (2008-2010), Morgan Stanley Foundation. |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships | |||||
Gary R. Wicker—1961 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer, RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005- 2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider); Senior Audit Manager (1994-1997), PricewaterhouseCoopers LLP. | 246 | Board Member and Treasurer, Our Daily Bread Ministries Canada (2015-Present); Board and Finance Committee Member, West Michigan Youth For Christ (2010-Present). | |||||
Donald H. Wilson—1959 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2008 | Chairman, President and Chief Executive Officer, McHenry Bancorp Inc. and McHenry Savings Bank (subsidiary) (2018-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, President and Chief Executive Officer, Stone Pillar Investments, Ltd. (advisory services to the financial sector) (2016- 2018); Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006). | 246 | Director, Penfield Children’s Center (2004-Present); Board Chairman, Gracebridge Alliance, Inc. (2015-Present). |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
The Interested Trustee and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex over seen by the Interested Trustee and the other directorships, if any, held by the Interested Trustee, are shown below:
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustee | Other Directorships Held by Interested Trustee During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director (2006-Present) and Executive Vice President (2008-Present), Invesco North American Holdings, Inc.; Executive Vice President (2008-Present), Invesco Investments (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary (2012-Present), Invesco Services (Bahamas) Private Limited; and Executive Vice President (2014-Present), INVESCO Asset Management (Bermuda) Ltd.; formerly, Director, Invesco Finance PLC (2011-2019); Director, INVESCO Asset Management (Bermuda) Ltd. (2014-2019); Director and Executive Vice President, Invesco Finance, Inc. (2011-2018); Director (2006-2018) and Executive Vice President (2008-2018), Invesco Group Services, Inc., Invesco Holding Company (US), Inc.; Director, Invesco Holding Company Limited (2007-2019); Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP. | 246 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | Chief Executive Officer, Manager and Principal Executive Officer, Invesco Specialized Products, LLC (2018-Present); President and Principal Executive Officer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Chief Executive Officer and Principal Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2013-2015) and Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Kelli Gallegos—1970 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2018 | Principal Financial and Accounting Officer-Pooled Investments, Invesco Specialized Products, LLC (2018-Present); Vice President and Treasurer, 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 (2018-Present); Principal Financial and Accounting Officer-Pooled Investments, Invesco Capital Management LLC (2018-Present); Vice President, Principal Financial Officer (2016-Present) and Assistant Treasurer (2008-Present), The Invesco Funds; formerly, Assistant Treasurer, Invesco Specialized Products, LLC (2018); Assistant Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust (2012-2018), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-2018) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-2018); Assistant Treasurer, Invesco Capital Management LLC (2013-2018); and Assistant Vice President, The Invesco Funds (2008-2016). | |||
Peter Hubbard—1981 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, Invesco Specialized Products, LLC (2018-Present); Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2009-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Vice President and Director of Portfolio Management, Invesco Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco Capital Management LLC (2008-2010); Portfolio Manager, Invesco Capital Management LLC (2007-2008); Research Analyst, Invesco Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005). |
* | This is the date each Officer began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2012 | Head of Global Fund Services, Invesco Ltd. (2019-Present); Vice President, OppenheimerFunds, Inc. (2019-Present); President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2012-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); formerly, Vice President and Principal Financial Officer, The Invesco Funds (2008-2016); Treasurer, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust and Invesco Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | |||
Anna Paglia—1974 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Head of Legal and Secretary, Invesco Specialized Products, LLC (2018-Present); Secretary, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2011-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2015-Present); Head of Legal (2010-Present) and Secretary (2015-Present), Invesco Capital Management LLC; Manager and Assistant Secretary, Invesco Indexing LLC (2017-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006). | |||
Rudolf E. Reitmann—1971 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Head of Global Exchange Traded Funds Services, Invesco Specialized Products, LLC (2018-Present); Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, Invesco Actively Managed Exchange-Traded Fund Trust (2013-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Head of Global Exchange Traded Funds Services, Invesco Capital Management LLC (2013-Present); Vice President, Invesco Capital Markets, Inc. (2018-Present). |
* | This is the date each Officer began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected. |
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Trustees and Officers(continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, Invesco Exchange-Traded Fund Trust, Invesco Exchange-Traded Fund Trust II, Invesco India Exchange-Traded Fund Trust, and Invesco Actively Managed Exchange-Traded Fund Trust (2009-Present), Invesco Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present) and Invesco Exchange-Traded Self-Indexed Fund Trust (2016-Present); Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2011-Present); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Director, Invesco Canada Holdings Inc. (2002-2019); Manager, Invesco Specialized Products, LLC (2018-2019); Managing Director—Chief Administrative Officer, Americas, Invesco Capital Management LLC (2013-2019); Senior Vice President, Invesco Management Group, Inc. (2007-2018); Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). | |||
Melanie Zimdars—1976 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer, Invesco Specialized Products, LLC (2018-Present); Chief Compliance Officer, Invesco Capital Management LLC (2017-Present); Chief Compliance Officer, 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 (2017-Present); formerly, Vice President and Deputy Chief Compliance Officer, ALPS Holding, Inc. (2009-2017); Mutual Fund Treasurer/ Chief Financial Officer, Wasatch Advisors, Inc. (2005-2008); Compliance Officer, U.S. Bancorp Fund Services, LLC (2001-2005). |
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800)983-0903.
* | This is the date each Officer began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected. |
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Proxy Voting Policies and Procedures
A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling(800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website atwww.sec.gov.
Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling(800) 983-0903; or (ii) accessing the Trust’sForm N-PX on the Commission’s website atwww.sec.gov.
Quarterly Portfolios
The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Trust’s Forms N-PORT are available on the Commission’s website atwww.sec.gov.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website atwww.invesco.com/ETFs.
©2019 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | P-PS-AR-10 | invesco.com/ETFs |
Item 2. Code of Ethics.
The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer. This Code is filed as an exhibit to this report on FormN-CSR under Item 13(a)(1). No substantive amendments to this Code were made during the reporting period. There were no waivers for the fiscal year ended October 31, 2019.
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 Investment Company Act of 1940, as amended) 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.
(a) | to (d) |
Fees Billed by PwC to the Registrant
PricewaterhouseCoopers LLP (“PwC”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees forpre-approved services rendered to the Registrant for the last two fiscal years as shown in the following table. The Audit Committeepre-approved all audit andnon-audit services provided to the Registrant.
Fees Billed by PwC for Services Rendered | Fees Billed by PwC for Services Rendered | |||
Audit Fees | $ 206,800 | $ 209,250 | ||
Audit-Related Fees | $ 0 | $ 0 | ||
Tax Fees(1) | $ 118,341 | $ 58,160 | ||
All Other Fees | $ 0 | $ 0 | ||
Total Fees | $ 325,141 | $267,410 |
(1) Tax Fees for the fiscal year ended October 31, 2019 include fees billed for preparation of U.S. Tax Returns and Taxable Income calculations, including excise andyear-to-date estimates for variousbook-to-tax differences. Tax Fees for the fiscal year ended October 31, 2018 include fees billed for reviewing tax returns, 2018 excise tax returns and excise tax distributions calculations.
Fees Billed by PwC Related to Invesco and Invesco 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 forpre-approvednon-audit services rendered to Invesco and Affiliates for the last two fiscal years as shown in the following table. The Audit Committeepre-approved allnon-audit services provided to Invesco and Affiliates that were required to bepre-approved.
Fees Billed for Non- to bePre-Approved by the Registrant’s Audit Committee | Fees Billed for Non- to bePre-Approved by the Registrant’s Audit Committee | |||
Audit-Related Fees(1) | $690,000 | $ 662,000 | ||
Tax Fees | $ 0 | $ 0 | ||
All Other Fees | $ 0 | $ 0 | ||
Total Fees | $690,000 | $ 662,000 |
(1) Audit-Related Fees for the fiscal years ended 2019 and 2018 include fees billed related to reviewing controls at a service organization.
(e)(1)Audit Committee Pre Approval Policies and Procedures
Pre-Approval of Audit andNon-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 andNon-Audit Services
| |
Relevant Law and Other Sources | Sarbanes-Oxley Act of 2002; RegulationS-X.
| |
Last Reviewed by Compliance for Accuracy
| June 15, 2018 |
Approved/Adopted Date
| June 2009
|
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 Committeepre-approves the audit andnon-audit services provided to the Funds by each Auditor, as well as allnon-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 forpre-approval and provide a mechanism by which management of the Funds may request and securepre-approval of audit andnon-audit services in an orderly manner with minimal disruption to normal business operations.
Proposed services either may bepre-approved without consideration of specificcase-by-case services by the Audit Committee (“generalpre-approval”) or require the specificpre-approval of the Audit Committee (“specificpre-approval”). As set forth in these policies and procedures, unless a type of service has received generalpre-approval, it will require specificpre-approval by the Audit Committee. Additionally, any fees exceeding 110% of estimatedpre-approved fee levels provided at the time the service waspre-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 previouslypre-approved services.
The Audit Committee will annually review and generallypre-approve the services that may be provided by each Auditor without obtaining specificpre-approval from the Audit Committee. The term of any generalpre-approval runs from the date of suchpre-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 generalpre-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 specificpre-approval fornon-prohibited services. All such delegatedpre-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 specificpre-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 specificpre-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 specificpre-approval of anynon-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 Committeepre-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 maypre-approvenon-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 specificpre-approval policies will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum estimatedpre-approved fees or established amounts forpre-approved audit andnon-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 andnon-audit services in determining whether topre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximumpre-approved fees or established amounts for previouslypre-approved services.
Procedures
On an annual basis, the Auditor will submit to the Audit Committee for generalpre-approval, a list ofnon-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe thenon-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 generalpre-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 generalpre-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 thepre-approval policies and procedures and the SEC Rules.
Each request to provide Tax services under either the general or specificpre-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 section2-01(f)(14) of RegulationS-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.
Adopted: June 26, 2009
Amended: June 15, 2018
Exhibit 1 toPre-Approval of Audit andNon-Audit Services Policies and Procedures
Conditionally ProhibitedNon-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, orcontribution-in-kind reports | |
• | Actuarial services | |
• | Internal audit outsourcing services |
Categorically ProhibitedNon-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 werepre-approved by the Audit Committee pursuant to the de minimus exception under Rule2-01 of RegulationS-X. | ||
(f) | Not applicable. | |||
(g) | In addition to the amounts shown in the tables above, PwC billed Invesco and Affiliates aggregate fees of $3,294,000 for the fiscal year ended October 31, 2019 and $ 2,977,000 for the fiscal year ended October 31, 2018 fornon-audit services not required to bepre-approved by the Registrant’s Audit Committee. In total, PwC billed the Registrant, Invesco and Affiliates aggregatenon-audit fees of $4,102,341 for the fiscal year ended October 31, 2019 and $3,697,000 for the fiscal year ended October 31, 2018. | |||
(h) | With respect to thenon-audit services above billed to Invesco and Affiliates that were not required to bepre-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 Rule2-01(f)(14) of RegulationS-X, of approximately $34 million andnon-audit services of approximately $21 million for the fiscal year ended 2019. The Audit Committee considered this information in evaluating PwC’s independence. |
During the reporting period, PwC advised the Registrant’s Audit Committee of the following matters for consideration under the SEC auditor independence rules. PwC advised the Audit Committee that four PwC Managers and two PwC Partners each held financial interests either directly or, in the case of the two PwC Partners, indirectly through their respective spouse’s equivalent brokerage account or spouse’s employee benefit plan, respectively, in investment companies within the complex that includes the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the “Invesco Fund Complex”) that were inconsistent with the requirements of Rule2-01(c)(1) of RegulationS-X. With respect to the one PwC Partner, the financial interest was disposed of July 8, 2019. PwC noted, among other things, that during the time of its audit, or with respect to the one PwC Partner and three PwC Managers, until after it was disposed of or after they ceased providing services, the engagement team was not aware of the investments, the individuals were not in the chain of command of the audit or the audit partners of Invesco or the affiliates of the Registrant, the services provided by the PwC Manager were not relied upon by the audit engagement team with respect to the audit of the Registrant or its affiliates, or in the case of the two PwC Partners and three PwC Managers, the individuals either did not provide any audit services or did not provide services of any kind to the Registrant or its affiliates and the investments were not material to the net worth of each individual or their respective immediate family members which PwC considered in reaching its conclusion. PwC advised the Audit Committee that it believes its objectivity and impartiality has not been adversely affected by these matters as they relate to the audit of the Registrant.
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. |
Item 6. Schedule of Investments.
(a) | The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this FormN-CSR. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. 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 11. Controls and Procedures.
(a) | Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) 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 Rule30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities forClosed-End Management Investment Companies. |
Not applicable.
Item 13. Exhibits.
(a)(1) | Code of Ethics is attached as Exhibit 99.CODEETH. | |
(a)(2) | Certifications of the Registrant’s President and Treasurer pursuant to Rule30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT. | |
(a)(3) | Not applicable. | |
(a)(4) | Not applicable. | |
(b) | Certifications of the Registrant’s President and Treasurer pursuant to Rule30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT. |
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 Actively Managed Exchange-Traded Fund Trust
By:/s/ Daniel E. Draper
Name: Daniel E. Draper
Title: President
Date: January 3, 2020
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/ Daniel E. Draper
Name: Daniel E. Draper
Title: President
Date: January 3, 2020
By:/s/ Kelli Gallegos
Name: Kelli Gallegos
Title: Treasurer
Date: January 3, 2020