UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-23304
Invesco Exchange-Traded Self-Indexed 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: June 30
Date of reporting period: June 30, 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
June 30, 2019
ESGL | Invesco ESG Revenue ETF | |
OMFL | Invesco Russell 1000® Dynamic Multifactor ETF | |
OMFS | Invesco Russell 2000® Dynamic Multifactor 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.
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Domestic Equity
Though the S&P 500 Index posted a modest gain of 4.30% for the second quarter, the US stock market experienced increased volatility. After four consecutive months of rising prices, stocks sold off in May, with the S&P 500 Index falling 6.58%. Bond yields and oil prices also fell as investors weighed the impact of the ongoing US/China trade war and the potential for new tariffs on Mexican imports. Additionally, data showed slowing in the US and global economies. Equity markets recovered in June as the S&P 500 Index returned 7.05%, its best June performance since 1955. The Federal Reserve left interest rates unchanged at its June Federal Open Market Committee meeting, but signaled a less restrictive stance, leading some investors to anticipate a future rate cut. US large andmid-cap stocks outperformedsmall-cap stocks and growth outperformed value for the quarter.
Important Update
On October 18, 2018, Massachusetts Mutual Life Insurance Company, an indirect corporate parent of OppenheimerFunds, Inc. and its subsidiaries OFI Global Asset Management, Inc., OFI SteelPath, Inc. and OFI Advisors, LLC, announced that it had entered into an agreement whereby Invesco Ltd., a global investment management company would acquire OppenheimerFunds and its subsidiaries (together “OppenheimerFunds”). After the close of business on May 24, 2019 Invesco Ltd. completed the acquisition of OppenheimerFunds. These Funds were included in that acquisition and as of that date, became part of the Invesco family of funds.
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ESGL | Manager’s Analysis | |
Invesco ESG Revenue ETF (ESGL) |
As an index fund, the Invesco ESG Revenue ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Invesco Revenue Weighted ESG Index™ (the “Index”). The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Invesco Indexing LLC (“Invesco Indexing” or the “Index Provider”) compiles the Index, which is designed to select companies from within the S&P 500® Index (the “Benchmark Index” or “Parent Index”) that have strong environmental, social and governance (“ESG”) practices. S&P Dow Jones Indices calculates the Index. Each company within the Parent Index is assigned a score using a system established by Sustainalytics, a third-party research provider, which measures the strength of each pillar of ESG practices (the “ESG Score”). The top half of companies based on their ESG Scores, excluding those with a detrimental score for controversies, are selected for inclusion in the Index. Unlike the Parent Index, which employs a market capitalization weighted methodology, the Index’s methodology weights each constituent security according to its revenue earned, subject to a maximum 5% per company weighting. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended June 30, 2019, on a market price basis, the Fund returned 6.05%. On a net asset value (“NAV”) basis, the Fund returned 5.95%. During the same time period, the Index returned 6.38%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as trading costs associated with portfolio rebalances during the period.
During this same time period, the Benchmark Index returned 10.42%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 equity 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. stock market.
The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs an ESG screen and revenue weights the remaining securities, whereas the Benchmark Index weights stocks based primarily on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the information technology sector during the fiscal year ended June 30, 2019. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be
attributed to the Fund being overweight the consumer discretionary sector and healthcare sectors.
For the fiscal year ended June 30, 2019, the communication services and utilities sectors contributed most significantly to the Fund’s return. The consumer discretionary and healthcare sectors detracted most significantly from the Fund’s return.
Positions that contributed most significantly to the Fund’s return for the fiscal year ended June 30, 2019, included Apple, Inc., an information technology company (portfolio average weight of 2.16%) and Microsoft Corp., an information technology company (portfolio average weight of 1.92%). Positions that detracted most significantly from the Fund’s return during this period included Kroger Co. (The), a consumer staples company (portfolio average weight of 2.11%) and CVS Health Corp., a healthcare company (portfolio average weight of 3.07%).
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Invesco ESG Revenue ETF (ESGL)(continued)
Sector Breakdown (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Health Care Equipment & Services | 13.1 | |||
Energy | 9.3 | |||
Capital Goods | 7.6 | |||
Technology Hardware & Equipment | 7.4 | |||
Software & Services | 6.0 | |||
Retailing | 5.6 | |||
Food & Staples Retailing | 4.9 | |||
Telecommunication Services | 4.8 | |||
Banks | 4.3 | |||
Utilities | 4.1 | |||
Pharmaceuticals, Biotechnology & Life Sciences | 4.0 | |||
Food, Beverage & Tobacco | 3.8 | |||
Insurance | 3.6 | |||
Semiconductors & Semiconductor Equipment | 2.9 | |||
Automobiles & Components | 2.8 | |||
Transportation | 2.8 | |||
Media & Entertainment | 2.7 | |||
Materials | 2.3 | |||
Diversified Financials | 2.1 | |||
Household & Personal Products | 1.9 | |||
Consumer Services | 1.3 | |||
Consumer Durables & Apparel | 1.1 | |||
Real Estate | 1.1 | |||
Commercial & Professional Services | 0.4 | |||
Money Market Fund | 0.4 | |||
Liabilities in Excess of Other Assets | (0.3) | |||
Net Assets | 100.0 |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Security | ||||
Exxon Mobil Corp. | 4.14 | |||
Apple, Inc. | 3.92 | |||
UnitedHealth Group, Inc. | 3.41 | |||
CVS Health Corp. | 3.24 | |||
AT&T, Inc. | 2.78 | |||
Ford Motor Co. | 2.47 | |||
Cardinal Health, Inc. | 2.30 | |||
Walgreens Boots Alliance, Inc. | 2.16 | |||
JPMorgan Chase & Co. | 2.12 | |||
Verizon Communications, Inc. | 1.99 |
* | Excluding money market fund holdings. |
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Invesco ESG Revenue ETF (ESGL)(continued)
Growth of a $10,000 Investment
Fund Performance History as of June 30, 2019
Fund Inception | ||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||
Invesco Revenue Weighted ESG Index™ | 6.38 | % | 11.80 | % | 34.76 | % | ||||||||||
S&P 500® Index | 10.42 | 15.20 | 46.01 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 5.95 | 11.48 | 33.73 | |||||||||||||
Market Price Return | 6.05 | 11.52 | 33.86 |
Oppenheimer ESG Revenue ETF (the “Predecessor Fund”) Inception: October 28, 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 0.40% 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 recentmonth-end performance numbers.
Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Predecessor Fund. |
- | Effective after the close of business on May 24, 2019, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund. |
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OMFL | Manager’s Analysis | |
Invesco Russell 1000® Dynamic Multifactor ETF (OMFL) |
As an index fund, the Invesco Russell 1000® Dynamic Multifactor ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Russell 1000® Invesco Dynamic Multifactor Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Frank Russell Company (“Frank Russell” or the “Index Provider”) compiles and maintains the Index. The Index is designed to select equity securities from within the Russell 1000® Index (the “Benchmark Index” or “Parent Index”), which measures the performance of the 1,000 largest capitalization companies in the United States. The Index consists of one of fourpre-determined factor configurations that emphasize a subset of the following five investment style factors, value, momentum, quality, low volatility, and size. The current economic cycle/market condition category, which determines which factor configuration is applied, is derived from a rules-based methodology that relies on certain leading economic indicators and information regarding global risk appetite. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended June 30, 2019, on a market price basis, the Fund returned 13.32%. On a net asset value (“NAV”) basis, the Fund returned 13.37%. During the same time period, the Index returned 13.65%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as trading costs associated with portfolio rebalances during the period.
During this same time period, the Benchmark Index returned 10.02%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 securities. The Benchmark Index was selected for its recognition in the market place, and because its performance comparison is a useful measure for investors as a broad representation of the overall U.S. stock market.
The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer staples and consumer discretionary sectors and most underweight in the financials and communication services sectors during the fiscal year ended June 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight
and its stock selection in the consumer staples and financials sector.
For the fiscal year ended June 30, 2019, the information technology sector contributed most significantly to the Fund’s return, followed by the consumer staples and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the materials and financials sectors, respectively.
Positions that contributed most significantly to the Fund’s return for the fiscal year ended June 30, 2019, included Johnson & Johnson, a health care company (portfolio average weight of 4.91%) and Visa Inc., an information technology company (portfolio average weight of 3.74%). Positions that detracted most significantly from the Fund’s return during this period included Centene Corporation, a health care company (no longer held at fiscal year-end) and Hewlett Packard Enterprise Co., an information technology company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Software & Services | 19.5 | |||
Pharmaceuticals, Biotechnology & Life Sciences | 11.4 | |||
Media & Entertainment | 9.6 | |||
Energy | 7.4 | |||
Technology Hardware & Equipment | 7.4 | |||
Capital Goods | 7.2 | |||
Retailing | 6.6 | |||
Household & Personal Products | 4.8 | |||
Food, Beverage & Tobacco | 3.6 | |||
Health Care Equipment & Services | 3.6 | |||
Consumer Services | 3.3 | |||
Semiconductors & Semiconductor Equipment | 2.7 | |||
Diversified Financials | 2.5 | |||
Consumer Durables & Apparel | 1.8 | |||
Real Estate | 1.8 | |||
Transportation | 1.7 | |||
Food & Staples Retailing | 1.5 | |||
Materials | 1.3 | |||
Insurance | 1.1 | |||
Commercial & Professional Services | 1.0 | |||
Automobiles & Components | 0.1 | |||
Money Market Fund | 0.1 | |||
Utilities | 0.1 | |||
Liabilities in Excess of Other Assets | (0.1) | |||
Net Assets | 100.0 |
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Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)(continued)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Security | ||||
Apple, Inc. | 5.02 | |||
Microsoft Corp. | 5.02 | |||
Johnson & Johnson | 4.85 | |||
Exxon Mobil Corp. | 4.64 | |||
Visa, Inc., Class A | 4.52 | |||
Mastercard, Inc., Class A | 3.60 | |||
Home Depot, Inc. (The) | 3.38 | |||
Procter & Gamble Co. (The) | 2.73 | |||
Alphabet, Inc., Class C | 2.52 | |||
Alphabet, Inc., Class A | 2.42 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment
Fund Performance History as of June 30, 2019
Fund Inception | ||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||
Russell 1000® Invesco Dynamic Multifactor Index | 13.65 | % | 12.97 | % | 22.21 | % | ||||||||||
Russell 1000® Index | 10.02 | 10.06 | 17.08 | |||||||||||||
Fund | ||||||||||||||||
NAV Return | 13.37 | 12.61 | 21.57 | |||||||||||||
Market Price Return | 13.32 | 12.61 | 21.57 |
Oppenheimer Russell 1000® Dynamic Multifactor ETF (the “Predecessor Fund”) Inception: November 8, 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
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Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)(continued)
have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio of 0.29% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recentmonth-end performance numbers.
Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Predecessor Fund. |
- | Effective after the close of business on May 24, 2019, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund. |
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OMFS | Manager’s Analysis | |
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS) |
As an index fund, the Invesco Russell 2000® Dynamic Multifactor ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Russell 2000® Invesco Dynamic Multifactor Index (the “Index”). The Fund generally will invest at least 80% of its total assets in the securities that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Frank Russell Company (“Frank Russell” or the “Index Provider”) compiles and maintains the Index. The Index is designed to select equity securities from within the Russell 2000® Index (the “Benchmark Index” or “Parent Index”), which measures the performance of 2,000 small-capitalization companies in the United States The Index consists of one of fourpre-determined factor configurations that emphasize a subset of the following five investment style factors, value, momentum, quality, low volatility, and size. The current economic cycle/market condition category, which determines which factor configuration is applied, is derived from a rules-based methodology that relies on certain leading economic indicators and information regarding global risk appetite. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended June 30, 2019, on a market price basis, the Fund returned 0.59%. On a net asset value (“NAV”) basis, the Fund returned 0.63%. During the same time period, the Index returned 1.02%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred as well as trading costs associated with portfolio rebalances during the period.
During this same time period, the Russell 2000® Index (the “Benchmark Index”) returned (3.31)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,000 securities. The Benchmark Index was selected for its recognition in the market place, and because its performance comparison is a useful measure for investors as a broad representation of the overall U.S.small-cap stock market.
The performance of the Fund differed from the Benchmark Index in part because the Fund seeks to track an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in utilities and consumer discretionary sectors and most underweight in the health care and information during the fiscal year ended June 30, 2019. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight and security selection in the energy sector.
For the fiscal year ended June 30, 2019, the utilities sector contributed most significantly to the Fund’s return, followed by the real estate and information technology sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and energy sectors, respectively.
Positions that contributed most significantly to the Fund’s return for the fiscal year ended June 30, 2019, included Deckers Outdoor Corp., a consumer discretionary (portfolio average weight of 0.84%) and Planet Fitness, Inc. Class A, a consumer discretionary company (portfolio average weight of 0.90%). Positions that detracted most significantly from the Fund’s return during this period included United Natural Foods, Inc., a consumer staples (no longer held at fiscal year-end) and Signet Jewelers Limited, a consumer discretionary company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Banks | 15.0 | |||
Real Estate | 12.3 | |||
Capital Goods | 9.8 | |||
Commercial & Professional Services | 9.1 | |||
Health Care Equipment & Services | 7.2 | |||
Utilities | 5.3 | |||
Materials | 5.2 | |||
Diversified Financials | 5.1 | |||
Consumer Services | 4.9 | |||
Retailing | 3.5 | |||
Consumer Durables & Apparel | 3.2 | |||
Food, Beverage & Tobacco | 3.2 | |||
Software & Services | 3.1 | |||
Money Market Fund | 2.6 | |||
Insurance | 2.5 | |||
Semiconductors & Semiconductor Equipment | 2.1 | |||
Technology Hardware & Equipment | 2.1 | |||
Automobiles & Components | 1.7 | |||
Energy | 1.3 | |||
Household & Personal Products | 1.3 | |||
Transportation | 1.0 | |||
Media & Entertainment | 0.7 | |||
Food & Staples Retailing | 0.3 | |||
Telecommunication Services | 0.2 | |||
Liabilities in Excess of Other Assets | (2.7) | |||
Net Assets | 100.0 |
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Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of June 30, 2019 | ||||
Security | ||||
Invesco Government & Agency Portfolio—Institutional Class | 1.95 | |||
Haemonetics Corp. | 1.13 | |||
EMCOR Group, Inc. | 1.02 | |||
Amedisys, Inc. | 0.97 | |||
Insperity, Inc. | 0.90 | |||
Healthcare Services Group, Inc. | 0.88 | |||
Churchill Downs, Inc. | 0.87 | |||
Simpson Manufacturing Co., Inc. | 0.79 | |||
Texas Roadhouse, Inc. | 0.79 | |||
Cracker Barrel Old Country Store, Inc. | 0.78 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment
Fund Performance History as of June 30, 2019
Fund Inception | ||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||
Russell 2000® Invesco Dynamic Multifactor Index | 1.02 | % | 6.36 | % | 10.67 | % | ||||||||||
Russell 2000® Index | (3.31 | ) | 4.88 | 8.16 | ||||||||||||
Fund | ||||||||||||||||
NAV Return | 0.63 | 5.91 | 9.90 | |||||||||||||
Market Price Return | 0.59 | 5.89 | 9.86 |
Oppenheimer Russell 2000® Dynamic Multifactor ETF (the “Predecessor Fund”) Inception: November 8, 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.
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Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
According to the Fund’s current prospectus, the Fund’s expense ratio of 0.39% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invesco.com/ ETFs to find the most recentmonth-end performance numbers.
Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index 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, Index and Benchmark Index are based on the inception date of the Predecessor Fund. |
- | Effective after the close of business on May 24, 2019, the Predecessor Fund was reorganized into the Fund. Fund returns shown are blended returns of the Predecessor Fund and the Fund. |
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Invesco ESG Revenue ETF (ESGL)
June 30, 2019
Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Automobiles & Components—2.8% | ||||||||
782 | Aptiv PLC | $ | 63,209 | |||||
1,054 | BorgWarner, Inc. | 44,247 | ||||||
68,390 | Ford Motor Co. | 699,630 | ||||||
|
| |||||||
Total Automobiles & Components | 807,086 | |||||||
|
| |||||||
Banks—4.3% | ||||||||
17,077 | Bank of America Corp. | 495,233 | ||||||
5,372 | JPMorgan Chase & Co. | 600,590 | ||||||
1,849 | KeyCorp | 32,820 | ||||||
651 | PNC Financial Services Group, Inc. (The) | 89,369 | ||||||
|
| |||||||
Total Banks | 1,218,012 | |||||||
|
| |||||||
Capital Goods—7.6% | ||||||||
802 | 3M Co. | 139,019 | ||||||
612 | Cummins, Inc. | 104,860 | ||||||
1,026 | Deere & Co. | 170,018 | ||||||
1,122 | Eaton Corp. PLC | 93,440 | ||||||
1,188 | Emerson Electric Co. | 79,263 | ||||||
49,022 | General Electric Co. | 514,731 | ||||||
413 | Illinois Tool Works, Inc. | 62,285 | ||||||
545 | Ingersoll-Rand PLC | 69,035 | ||||||
3,021 | Johnson Controls International PLC | 124,798 | ||||||
674 | Lockheed Martin Corp. | 245,026 | ||||||
944 | Masco Corp. | 37,043 | ||||||
420 | Northrop Grumman Corp. | 135,706 | ||||||
362 | Parker-Hannifin Corp. | 61,544 | ||||||
362 | Pentair PLC | 13,466 | ||||||
650 | Raytheon Co. | 113,022 | ||||||
177 | Rockwell Automation, Inc. | 28,998 | ||||||
420 | Stanley Black & Decker, Inc. | 60,736 | ||||||
277 | United Rentals, Inc.1 | 36,739 | ||||||
176 | W.W. Grainger, Inc. | 47,208 | ||||||
274 | Xylem, Inc. | 22,917 | ||||||
|
| |||||||
Total Capital Goods | 2,159,854 | |||||||
|
| |||||||
Commercial & Professional Services—0.4% | ||||||||
298 | IHS Markit Ltd.1 | 18,989 | ||||||
1,189 | Nielsen Holdings PLC | 26,871 | ||||||
559 | Waste Management, Inc. | 64,492 | ||||||
|
| |||||||
Total Commercial & Professional Services | 110,352 | |||||||
|
| |||||||
Consumer Durables & Apparel—1.1% | ||||||||
1,684 | Hanesbrands, Inc. | 28,999 | ||||||
184 | Hasbro, Inc. | 19,445 | ||||||
1,964 | NIKE, Inc., Class B | 164,878 | ||||||
457 | PVH Corp. | 43,250 | ||||||
668 | VF Corp. | 58,350 | ||||||
|
| |||||||
Total Consumer Durables & Apparel | 314,922 | |||||||
|
| |||||||
Consumer Services—1.3% | ||||||||
1,796 | Carnival Corp. | 83,604 | ||||||
403 | Hilton Worldwide Holdings, Inc. | 39,389 | ||||||
652 | Marriott International, Inc., Class A | 91,469 | ||||||
367 | Royal Caribbean Cruises Ltd. | 44,484 | ||||||
1,302 | Starbucks Corp. | 109,147 | ||||||
|
| |||||||
Total Consumer Services | 368,093 | |||||||
|
| |||||||
Diversified Financials—2.1% | ||||||||
113 | Affiliated Managers Group, Inc. | 10,412 | ||||||
1,931 | Bank of New York Mellon Corp. (The) | 85,254 | ||||||
130 | BlackRock, Inc. | 61,009 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Diversified Financials (continued) | ||||||||
726 | Franklin Resources, Inc. | $ | 25,265 | |||||
1,070 | Invesco Ltd.2 | 21,892 | ||||||
98 | Moody’s Corp. | 19,140 | ||||||
4,976 | Morgan Stanley | 217,999 | ||||||
27 | MSCI, Inc. | 6,447 | ||||||
338 | Northern Trust Corp. | 30,420 | ||||||
118 | S&P Global, Inc. | 26,879 | ||||||
960 | State Street Corp. | 53,818 | ||||||
213 | T. Rowe Price Group, Inc. | 23,368 | ||||||
|
| |||||||
Total Diversified Financials | 581,903 | |||||||
|
| |||||||
Energy—9.3% | ||||||||
1,063 | Apache Corp. | 30,795 | ||||||
3,988 | Baker Hughes a GE Co.3 | 98,224 | ||||||
2,608 | ConocoPhillips | 159,088 | ||||||
1,547 | Devon Energy Corp. | 44,120 | ||||||
819 | EOG Resources, Inc. | 76,298 | ||||||
15,288 | Exxon Mobil Corp. | 1,171,519 | ||||||
4,541 | Halliburton Co. | 103,262 | ||||||
459 | Hess Corp. | 29,179 | ||||||
1,718 | HollyFrontier Corp. | 79,509 | ||||||
1,696 | Marathon Oil Corp. | 24,100 | ||||||
8,642 | Marathon Petroleum Corp. | 482,915 | ||||||
864 | Noble Energy, Inc. | 19,354 | ||||||
1,511 | Occidental Petroleum Corp. | 75,973 | ||||||
773 | ONEOK, Inc. | 53,190 | ||||||
3,667 | Schlumberger Ltd. | 145,727 | ||||||
2,124 | TechnipFMC PLC | 55,097 | ||||||
|
| |||||||
Total Energy | 2,648,350 | |||||||
|
| |||||||
Food & Staples Retailing—4.9% | ||||||||
23,380 | Kroger Co. (The) | 507,580 | ||||||
3,655 | Sysco Corp. | 258,481 | ||||||
11,182 | Walgreens Boots Alliance, Inc. | 611,320 | ||||||
|
| |||||||
Total Food & Staples Retailing | 1,377,381 | |||||||
|
| |||||||
Food, Beverage & Tobacco—3.8% | ||||||||
1,685 | Altria Group, Inc. | 79,785 | ||||||
260 | Brown-Forman Corp., Class B | 14,412 | ||||||
1,037 | Campbell Soup Co. | 41,553 | ||||||
2,685 | Coca-Cola Co. (The) | 136,720 | ||||||
1,323 | Conagra Brands, Inc. | 35,086 | ||||||
1,325 | General Mills, Inc. | 69,589 | ||||||
245 | Hershey Co. (The) | 32,837 | ||||||
279 | JM Smucker Co. (The) | 32,138 | ||||||
1,053 | Kellogg Co. | 56,409 | ||||||
150 | McCormick & Co., Inc. | 23,252 | ||||||
844 | Molson Coors Brewing Co., Class B | 47,264 | ||||||
1,996 | Mondelez International, Inc., Class A | 107,584 | ||||||
2,090 | PepsiCo, Inc. | 274,062 | ||||||
1,644 | Philip Morris International, Inc. | 129,103 | ||||||
|
| |||||||
Total Food, Beverage & Tobacco | 1,079,794 | |||||||
|
| |||||||
Health Care Equipment & Services—13.1% | ||||||||
1,561 | Abbott Laboratories | 131,280 | ||||||
1,390 | Anthem, Inc. | 392,272 | ||||||
585 | Baxter International, Inc. | 47,911 | ||||||
297 | Becton Dickinson and Co. | 74,847 | ||||||
13,851 | Cardinal Health, Inc. | 652,382 | ||||||
16,840 | CVS Health Corp. | 917,612 |
The accompanying notes are an integral part of these financial statements.
| 13 |
|
Invesco ESG Revenue ETF (ESGL)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Health Care Equipment & Services (continued) | ||||||||
86 | Edwards Lifesciences Corp.1 | $ | 15,888 | |||||
763 | Henry Schein, Inc.1 | 53,334 | ||||||
936 | Humana, Inc. | 248,321 | ||||||
1,332 | Medtronic PLC | 129,723 | ||||||
90 | ResMed, Inc. | 10,983 | ||||||
32 | Teleflex, Inc. | 10,597 | ||||||
3,951 | UnitedHealth Group, Inc. | 964,083 | ||||||
96 | Varian Medical Systems, Inc.1 | 13,068 | ||||||
284 | Zimmer Biomet Holdings, Inc. | 33,438 | ||||||
|
| |||||||
Total Health Care Equipment & Services | 3,695,739 | |||||||
|
| |||||||
Household & Personal Products—1.9% | ||||||||
237 | Church & Dwight Co., Inc. | 17,315 | ||||||
176 | Clorox Co. (The) | 26,947 | ||||||
904 | Colgate-Palmolive Co. | 64,790 | ||||||
344 | Estee Lauder Cos., Inc., (The), Class A | 62,990 | ||||||
585 | Kimberly-Clark Corp. | 77,969 | ||||||
2,588 | Procter & Gamble Co. (The) | 283,774 | ||||||
|
| |||||||
Total Household & Personal Products | 533,785 | |||||||
|
| |||||||
Insurance—3.6% | ||||||||
1,699 | Allstate Corp. (The) | 172,771 | ||||||
1,476 | Hartford Financial Services Group, Inc. (The) | 82,243 | ||||||
1,118 | Lincoln National Corp. | 72,055 | ||||||
664 | Marsh & McLennan Cos., Inc. | 66,234 | ||||||
6,007 | MetLife, Inc. | 298,368 | ||||||
1,121 | Principal Financial Group, Inc. | 64,928 | ||||||
2,696 | Prudential Financial, Inc. | 272,296 | ||||||
|
| |||||||
Total Insurance | 1,028,895 | |||||||
|
| |||||||
Materials—2.3% | ||||||||
174 | Air Products & Chemicals, Inc. | 39,388 | ||||||
215 | Albemarle Corp. | 15,138 | ||||||
274 | Avery Dennison Corp. | 31,696 | ||||||
751 | Ball Corp. | 52,563 | ||||||
559 | Eastman Chemical Co. | 43,507 | ||||||
333 | Ecolab, Inc. | 65,748 | ||||||
248 | FMC Corp. | 20,572 | ||||||
127 | International Flavors & Fragrances, Inc. | 18,426 | ||||||
2,316 | International Paper Co. | 100,329 | ||||||
1,894 | LyondellBasell Industries NV, Class A | 163,130 | ||||||
835 | Newmont Goldcorp Corp. | 32,122 | ||||||
570 | PPG Industries, Inc. | 66,525 | ||||||
|
| |||||||
Total Materials | 649,144 | |||||||
|
| |||||||
Media & Entertainment—2.7% | ||||||||
9,743 | Comcast Corp., Class A | 411,934 | ||||||
1,904 | Interpublic Group of Cos., Inc. (The) | 43,011 | ||||||
1,796 | Viacom, Inc., Class B | 53,646 | ||||||
1,829 | Walt Disney Co. (The) | 255,402 | ||||||
|
| |||||||
Total Media & Entertainment | 763,993 | |||||||
|
| |||||||
Pharmaceuticals, Biotechnology & Life Sciences—4.0% | ||||||||
1,822 | AbbVie, Inc. | 132,496 | ||||||
296 | Agilent Technologies, Inc. | 22,102 | ||||||
521 | Allergan PLC | 87,231 | ||||||
553 | Amgen, Inc. | 101,907 | ||||||
227 | Biogen, Inc.1 | 53,089 | ||||||
2,067 | Bristol-Myers Squibb Co. | 93,739 | ||||||
694 | Celgene Corp.1 | 64,153 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Pharmaceuticals, Biotechnology & Life Sciences (continued) | ||||||||
1,397 | Gilead Sciences, Inc. | $ | 94,381 | |||||
41 | Illumina, Inc.1 | 15,094 | ||||||
2,198 | Merck & Co., Inc. | 184,302 | ||||||
16 | Mettler-Toledo International, Inc.1 | 13,440 | ||||||
5,324 | Pfizer, Inc. | 230,636 | ||||||
94 | Regeneron Pharmaceuticals, Inc.1 | 29,422 | ||||||
|
| |||||||
Total Pharmaceuticals, Biotechnology & Life Sciences | 1,121,992 | |||||||
|
| |||||||
Real Estate—1.1% | ||||||||
50 | AvalonBay Communities, Inc. | 10,159 | ||||||
88 | Boston Properties, Inc. | 11,352 | ||||||
1,835 | CBRE Group, Inc., Class A1 | 94,135 | ||||||
45 | Equinix, Inc. | 22,693 | ||||||
259 | HCP, Inc. | 8,283 | ||||||
1,263 | Host Hotels & Resorts, Inc. | 23,012 | ||||||
573 | Iron Mountain, Inc. | 17,935 | ||||||
286 | Kimco Realty Corp. | 5,285 | ||||||
153 | Prologis, Inc. | 12,255 | ||||||
149 | Simon Property Group, Inc. | 23,804 | ||||||
70 | SL Green Realty Corp. | 5,626 | ||||||
229 | Ventas, Inc. | 15,652 | ||||||
169 | Vornado Realty Trust | 10,833 | ||||||
252 | Welltower, Inc. | 20,546 | ||||||
1,199 | Weyerhaeuser Co. | 31,582 | ||||||
|
| |||||||
Total Real Estate | 313,152 | |||||||
|
| |||||||
Retailing—5.6% | ||||||||
2,725 | Best Buy Co., Inc. | 190,014 | ||||||
1,164 | eBay, Inc. | 45,978 | ||||||
3,938 | Gap, Inc. (The) | 70,766 | ||||||
2,253 | Home Depot, Inc. (The) | 468,556 | ||||||
1,845 | Kohl’s Corp. | 87,730 | ||||||
2,353 | L Brands, Inc. | 61,413 | ||||||
3,049 | Lowe’s Cos., Inc. | 307,675 | ||||||
5,048 | Macy’s, Inc. | 108,330 | ||||||
2,060 | Nordstrom, Inc.3 | 65,632 | ||||||
3,182 | TJX Cos., Inc. (The) | 168,264 | ||||||
|
| |||||||
Total Retailing | 1,574,358 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.9% | ||||||||
876 | Advanced Micro Devices, Inc.1 | 26,604 | ||||||
243 | Analog Devices, Inc. | 27,427 | ||||||
1,585 | Applied Materials, Inc. | 71,182 | ||||||
6,415 | Intel Corp. | 307,086 | ||||||
158 | KLA-Tencor Corp. | 18,676 | ||||||
244 | Lam Research Corp. | 45,833 | ||||||
177 | Maxim Integrated Products, Inc. | 10,588 | ||||||
261 | Microchip Technology, Inc.3 | 22,629 | ||||||
3,857 | Micron Technology, Inc.1 | 148,842 | ||||||
298 | NVIDIA Corp. | 48,940 | ||||||
202 | Skyworks Solutions, Inc. | 15,609 | ||||||
595 | Texas Instruments, Inc. | 68,282 | ||||||
116 | Xilinx, Inc. | 13,679 | ||||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 825,377 | |||||||
|
| |||||||
Software & Services—6.0% | ||||||||
988 | Accenture PLC, Class A | 182,553 | ||||||
136 | Adobe, Inc.1 | 40,072 | ||||||
150 | Akamai Technologies, Inc.1 | 12,021 |
The accompanying notes are an integral part of these financial statements.
| 14 |
|
Invesco ESG Revenue ETF (ESGL)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Software & Services (continued) | ||||||||
74 | Autodesk, Inc.1 | $ | 12,055 | |||||
1,093 | Cognizant Technology Solutions Corp., Class A | 69,285 | ||||||
1,653 | DXC Technology Co. | 91,163 | ||||||
2,442 | International Business Machines Corp. | 336,752 | ||||||
109 | Intuit, Inc. | 28,485 | ||||||
3,827 | Microsoft Corp. | 512,665 | ||||||
3,028 | Oracle Corp. | 172,505 | ||||||
586 | PayPal Holdings, Inc.1 | 67,074 | ||||||
384 | salesforce.com, Inc.1 | 58,264 | ||||||
991 | Symantec Corp. | 21,564 | ||||||
536 | Visa, Inc., Class A | 93,023 | ||||||
|
| |||||||
Total Software & Services | 1,697,481 | |||||||
|
| |||||||
Technology Hardware & Equipment—7.4% | ||||||||
5,600 | Apple, Inc. | 1,108,352 | ||||||
3,818 | Cisco Systems, Inc. | 208,959 | ||||||
1,511 | Corning, Inc. | 50,210 | ||||||
8,705 | Hewlett Packard Enterprise Co. | 130,140 | ||||||
12,164 | HP, Inc. | 252,890 | ||||||
765 | Juniper Networks, Inc. | 20,372 | ||||||
208 | Keysight Technologies, Inc.1 | 18,680 | ||||||
194 | Motorola Solutions, Inc. | 32,346 | ||||||
425 | NetApp, Inc. | 26,222 | ||||||
1,008 | Seagate Technology PLC | 47,497 | ||||||
633 | TE Connectivity Ltd. | 60,629 | ||||||
1,967 | Western Digital Corp. | 93,531 | ||||||
1,168 | Xerox Corp. | 41,359 | ||||||
|
| |||||||
Total Technology Hardware & Equipment | 2,091,187 | |||||||
|
| |||||||
Telecommunication Services—4.8% | ||||||||
23,539 | AT&T, Inc. | 788,792 | ||||||
9,846 | Verizon Communications, Inc. | 562,502 | ||||||
|
| |||||||
Total Telecommunication Services | 1,351,294 | |||||||
|
| |||||||
Transportation—2.8% | ||||||||
3,422 | Delta Air Lines, Inc. | 194,199 | ||||||
1,783 | FedEx Corp. | 292,751 | ||||||
3,009 | United Parcel Service, Inc., Class B | 310,739 | ||||||
|
| |||||||
Total Transportation | 797,689 | |||||||
|
| |||||||
Utilities—4.1% | ||||||||
2,754 | AES Corp. | 46,157 | ||||||
328 | Alliant Energy Corp. | 16,098 | ||||||
353 | Ameren Corp. | 26,514 | ||||||
769 | American Electric Power Co., Inc. | 67,680 | ||||||
128 | American Water Works Co., Inc. | 14,848 | ||||||
1,591 | CenterPoint Energy, Inc. | 45,550 | ||||||
515 | CMS Energy Corp. | 29,823 | ||||||
609 | Consolidated Edison, Inc. | 53,397 | ||||||
769 | Dominion Energy, Inc. | 59,459 | ||||||
466 | DTE Energy Co. | 59,592 | ||||||
1,199 | Duke Energy Corp. | 105,800 | ||||||
868 | Edison International | 58,512 | ||||||
456 | Entergy Corp. | 46,936 | ||||||
481 | Eversource Energy | 36,440 | ||||||
3,171 | Exelon Corp. | 152,018 | ||||||
1,117 | FirstEnergy Corp. | 47,819 | ||||||
345 | NextEra Energy, Inc. | 70,677 | ||||||
806 | NiSource, Inc. | 23,213 | ||||||
1,200 | NRG Energy, Inc. | 42,144 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Utilities (continued) | ||||||||
164 | Pinnacle West Capital Corp. | $ | 15,431 | |||||
1,050 | PPL Corp. | 32,560 | ||||||
707 | Public Service Enterprise Group, Inc. | 41,586 | ||||||
394 | WEC Energy Group, Inc. | 32,848 | ||||||
829 | Xcel Energy, Inc. | 49,317 | ||||||
|
| |||||||
Total Utilities | 1,174,419 | |||||||
|
| |||||||
Total Common Stocks (Cost $25,688,884) | 28,284,252 | |||||||
|
| |||||||
Investment of Cash Collateral for Securities Loaned—0.4% | ||||||||
95,472 | Invesco Government & Agency Portfolio—Institutional Class, 2.27%4,5 | 95,472 | ||||||
31,811 | Invesco Liquid Assets Portfolio—Institutional Class, 2.41%4,5 | 31,824 | ||||||
|
| |||||||
Total Investment of Cash Collateral for Securities Loaned (Cost $127,296) | 127,296 | |||||||
|
| |||||||
Total Investments—100.3% (Cost $25,816,180) | 28,411,548 | |||||||
Liabilities in Excess of Other Assets—(0.3)% | (112,784 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 28,298,764 | ||||||
|
|
1. | Non-income producing security. |
2. | Affiliated security (Note 4). |
3. | All or a portion of the security was on loan. The aggregate value of the securities on loan was $124,914; total value of the collateral held by the Fund was $127,296. |
4. | 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 June 30, 2019. |
5. | 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 6. |
The accompanying notes are an integral part of these financial statements.
| 15 |
|
Schedule of Investments
Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)
June 30, 2019
Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Automobiles & Components—0.1% | ||||||||
24,603 | Gentex Corp. | $ | 605,480 | |||||
3,221 | Lear Corp. | 448,588 | ||||||
|
| |||||||
Total Automobiles & Components | 1,054,068 | |||||||
|
| |||||||
Capital Goods—7.2% | ||||||||
55,960 | 3M Co. | 9,700,106 | ||||||
12,097 | A.O. Smith Corp. | 570,494 | ||||||
5,674 | Allison Transmission Holdings, Inc. | 262,990 | ||||||
99 | AMETEK, Inc. | 8,993 | ||||||
36,543 | Boeing Co. (The) | 13,302,017 | ||||||
3,220 | Carlisle Cos., Inc. | 452,120 | ||||||
15,359 | Cummins, Inc. | 2,631,611 | ||||||
9,082 | Donaldson Co., Inc. | 461,910 | ||||||
40,713 | Emerson Electric Co. | 2,716,371 | ||||||
44,776 | Fastenal Co. | 1,459,250 | ||||||
22 | General Dynamics Corp. | 4,000 | ||||||
20,024 | Graco, Inc. | 1,004,804 | ||||||
2,133 | HEICO Corp. | 285,417 | ||||||
6,258 | Hexcel Corp. | 506,147 | ||||||
74,913 | Honeywell International, Inc. | 13,079,061 | ||||||
3,400 | Huntington Ingalls Industries, Inc. | 764,116 | ||||||
7,261 | IDEX Corp. | 1,249,909 | ||||||
33,845 | Illinois Tool Works, Inc. | 5,104,164 | ||||||
52 | Ingersoll-Rand PLC | 6,587 | ||||||
60 | ITT, Inc. | 3,929 | ||||||
112 | Jacobs Engineering Group, Inc. | 9,452 | ||||||
4,034 | Lennox International, Inc. | 1,109,350 | ||||||
4,399 | Lincoln Electric Holdings, Inc. | 362,126 | ||||||
12,774 | Lockheed Martin Corp. | 4,643,860 | ||||||
16,517 | PACCAR, Inc. | 1,183,608 | ||||||
12,478 | Pentair PLC | 464,182 | ||||||
25,943 | Raytheon Co. | 4,510,969 | ||||||
11,949 | Rockwell Automation, Inc. | 1,957,605 | ||||||
4,919 | Snap-on, Inc. | 814,783 | ||||||
2,519 | Teledyne Technologies, Inc.1 | 689,878 | ||||||
15,273 | Toro Co. (The) | 1,021,764 | ||||||
2,873 | WABCO Holdings, Inc.1 | 380,960 | ||||||
3,718 | Watsco, Inc. | 608,005 | ||||||
114 | Xylem, Inc. | 9,535 | ||||||
|
| |||||||
Total Capital Goods | 71,340,073 | |||||||
|
| |||||||
Commercial & Professional Services—1.0% | ||||||||
5,513 | Cintas Corp. | 1,308,180 | ||||||
17,747 | Copart, Inc.1 | 1,326,411 | ||||||
2,122 | CoStar Group, Inc.1 | 1,175,715 | ||||||
44 | Equifax, Inc. | 5,951 | ||||||
38 | Republic Services, Inc. | 3,292 | ||||||
9,293 | Robert Half International, Inc. | 529,794 | ||||||
20,436 | Rollins, Inc. | 733,039 | ||||||
9,939 | Verisk Analytics, Inc. | 1,455,666 | ||||||
25,918 | Waste Management, Inc. | 2,990,160 | ||||||
|
| |||||||
Total Commercial & Professional Services | 9,528,208 | |||||||
|
| |||||||
Consumer Durables & Apparel—1.8% | ||||||||
2,825 | Carter’s, Inc. | 275,550 | ||||||
12,821 | Garmin Ltd. | 1,023,116 | ||||||
85 | Hasbro, Inc. | 8,983 | ||||||
9,298 | Leggett & Platt, Inc. | 356,764 | ||||||
161,888 | NIKE, Inc., Class B | 13,590,498 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Consumer Durables & Apparel (continued) | ||||||||
394 | NVR, Inc.1 | $ | 1,327,878 | |||||
19,637 | VF Corp. | 1,715,292 | ||||||
|
| |||||||
Total Consumer Durables & Apparel | 18,298,081 | |||||||
|
| |||||||
Consumer Services—3.3% | ||||||||
13,239 | Darden Restaurants, Inc. | 1,611,583 | ||||||
2,871 | Domino’s Pizza, Inc. | 798,942 | ||||||
2,406 | Grand Canyon Education, Inc.1 | 281,550 | ||||||
71 | Marriott International, Inc., Class A | 9,961 | ||||||
54,278 | McDonald’s Corp. | 11,271,370 | ||||||
184,319 | Starbucks Corp. | 15,451,462 | ||||||
35,663 | Yum! Brands, Inc. | 3,946,824 | ||||||
|
| |||||||
Total Consumer Services | 33,371,692 | |||||||
|
| |||||||
Diversified Financials—2.5% | ||||||||
9,024 | Cboe Global Markets, Inc. | 935,157 | ||||||
10,835 | Eaton Vance Corp. | 467,314 | ||||||
2,379 | Evercore, Inc., Class A | 210,708 | ||||||
4,736 | FactSet Research Systems, Inc. | 1,357,148 | ||||||
26,282 | Franklin Resources, Inc. | 914,614 | ||||||
2,758 | MarketAxess Holdings, Inc. | 886,476 | ||||||
22,617 | Moody’s Corp. | 4,417,326 | ||||||
2,385 | Morningstar, Inc. | 344,966 | ||||||
11,013 | MSCI, Inc. | 2,629,794 | ||||||
37,015 | S&P Global, Inc. | 8,431,647 | ||||||
14,975 | SEI Investments Co. | 840,098 | ||||||
31,171 | T. Rowe Price Group, Inc. | 3,419,771 | ||||||
|
| |||||||
Total Diversified Financials | 24,855,019 | |||||||
|
| |||||||
Energy—7.4% | ||||||||
181,656 | Chevron Corp. | 22,605,273 | ||||||
604,749 | Exxon Mobil Corp. | 46,341,916 | ||||||
51,599 | Occidental Petroleum Corp. | 2,594,398 | ||||||
24,927 | Phillips 66 | 2,331,671 | ||||||
|
| |||||||
Total Energy | 73,873,258 | |||||||
|
| |||||||
Food & Staples Retailing—1.5% | ||||||||
39,640 | Costco Wholesale Corp. | 10,475,267 | ||||||
28,663 | Sysco Corp. | 2,027,047 | ||||||
44,199 | Walgreens Boots Alliance, Inc. | 2,416,359 | ||||||
68 | Walmart, Inc. | 7,513 | ||||||
|
| |||||||
Total Food & Staples Retailing | 14,926,186 | |||||||
|
| |||||||
Food, Beverage & Tobacco—3.6% | ||||||||
101,673 | Altria Group, Inc. | 4,814,216 | ||||||
10,806 | Brown-Forman Corp., Class B | 598,977 | ||||||
59 | Campbell Soup Co. | 2,364 | ||||||
35 | General Mills, Inc. | 1,838 | ||||||
86 | Hershey Co. (The) | 11,527 | ||||||
29,890 | Hormel Foods Corp. | 1,211,741 | ||||||
4,056 | Ingredion, Inc. | 334,579 | ||||||
147,628 | PepsiCo, Inc. | 19,358,460 | ||||||
126,599 | Philip Morris International, Inc. | 9,941,819 | ||||||
|
| |||||||
Total Food, Beverage & Tobacco | 36,275,521 | |||||||
|
| |||||||
Health Care Equipment & Services—3.6% | ||||||||
50,801 | Baxter International, Inc. | 4,160,602 | ||||||
28,857 | Cerner Corp. | 2,115,218 | ||||||
1,957 | Chemed Corp. | 706,164 | ||||||
55 | Cooper Cos., Inc. (The) | 18,529 |
The accompanying notes are an integral part of these financial statements.
| 16 |
|
Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Health Care Equipment & Services (continued) | ||||||||
33,769 | Danaher Corp. | $ | 4,826,265 | |||||
6,455 | Humana, Inc. | 1,712,512 | ||||||
4,439 | IDEXX Laboratories, Inc.1 | 1,222,190 | ||||||
5,516 | Intuitive Surgical, Inc.1 | 2,893,418 | ||||||
2,373 | Masimo Corp.1 | 353,150 | ||||||
49 | McKesson Corp. | 6,585 | ||||||
34 | Medtronic PLC | 3,311 | ||||||
9,360 | ResMed, Inc. | 1,142,201 | ||||||
5,327 | STERIS PLC | 793,084 | ||||||
109 | Stryker Corp. | 22,408 | ||||||
54,813 | UnitedHealth Group, Inc. | 13,374,920 | ||||||
11,070 | Varian Medical Systems, Inc.1 | 1,506,959 | ||||||
7,801 | West Pharmaceutical Services, Inc. | 976,295 | ||||||
|
| |||||||
Total Health Care Equipment & Services | 35,833,811 | |||||||
|
| |||||||
Household & Personal Products—4.8% | ||||||||
17,949 | Church & Dwight Co., Inc. | 1,311,354 | ||||||
6,728 | Clorox Co. (The) | 1,030,124 | ||||||
111,771 | Colgate-Palmolive Co. | 8,010,628 | ||||||
26,431 | Estee Lauder Cos., Inc., (The), Class A | 4,839,780 | ||||||
37,396 | Kimberly-Clark Corp. | 4,984,139 | ||||||
248,738 | Procter & Gamble Co. (The) | 27,274,122 | ||||||
|
| |||||||
Total Household & Personal Products | 47,450,147 | |||||||
|
| |||||||
Insurance—1.1% | ||||||||
56 | Aon PLC | 10,807 | ||||||
24 | Arthur J. Gallagher & Co. | 2,102 | ||||||
13,504 | Brown & Brown, Inc. | 452,384 | ||||||
4,482 | Erie Indemnity Co., Class A | 1,139,683 | ||||||
17,112 | Fidelity National Financial, Inc. | 689,613 | ||||||
58,693 | Marsh & McLennan Cos., Inc. | 5,854,627 | ||||||
37,508 | Progressive Corp. (The) | 2,998,014 | ||||||
117 | Torchmark Corp. | 10,467 | ||||||
78 | White Mountains Insurance Group Ltd. | 79,674 | ||||||
|
| |||||||
Total Insurance | 11,237,371 | |||||||
|
| |||||||
Materials—1.3% | ||||||||
19,368 | Air Products & Chemicals, Inc. | 4,384,334 | ||||||
87 | AptarGroup, Inc. | 10,818 | ||||||
5,188 | Avery Dennison Corp. | 600,148 | ||||||
6,675 | Celanese Corp. | 719,565 | ||||||
15,023 | Ecolab, Inc. | 2,966,141 | ||||||
36 | Linde PLC | 7,229 | ||||||
559 | NewMarket Corp. | 224,125 | ||||||
14,018 | PPG Industries, Inc. | 1,636,041 | ||||||
60 | Scotts Miracle-Gro Co., (The) | 5,910 | ||||||
4,373 | Sherwin-Williams Co. (The) | 2,004,102 | ||||||
6,925 | Sonoco Products Co. | 452,480 | ||||||
12,280 | Valvoline, Inc. | 239,828 | ||||||
|
| |||||||
Total Materials | 13,250,721 | |||||||
|
| |||||||
Media & Entertainment—9.6% | ||||||||
22,354 | Alphabet, Inc., Class A1 | 24,204,911 | ||||||
23,297 | Alphabet, Inc., Class C1 | 25,181,960 | ||||||
120,442 | Facebook, Inc., Class A1 | 23,245,306 | ||||||
32 | Liberty Broadband Corp., Class C1 | 3,335 | ||||||
1,500 | Madison Square Garden Co. (The), Class A1 | 419,910 | ||||||
13 | News Corp., Class A | 175 | ||||||
17 | Omnicom Group, Inc. | 1,393 | ||||||
85,511 | Sirius XM Holdings, Inc.2 | 477,152 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Media & Entertainment (continued) | ||||||||
162,626 | Walt Disney Co. (The) | $ | 22,709,095 | |||||
|
| |||||||
Total Media & Entertainment | 96,243,237 | |||||||
|
| |||||||
Pharmaceuticals, Biotechnology & Life Sciences—11.4% | ||||||||
21,962 | Agilent Technologies, Inc. | 1,639,903 | ||||||
48,909 | Amgen, Inc. | 9,012,950 | ||||||
112,733 | Bristol-Myers Squibb Co. | 5,112,442 | ||||||
74,854 | Eli Lilly & Co. | 8,293,075 | ||||||
347,358 | Johnson & Johnson | 48,380,022 | ||||||
232,582 | Merck & Co., Inc. | 19,502,001 | ||||||
2,567 | Mettler-Toledo International, Inc.1 | 2,156,280 | ||||||
406,017 | Pfizer, Inc. | 17,588,656 | ||||||
7,601 | Waters Corp.1 | 1,636,039 | ||||||
117 | Zoetis, Inc. | 13,278 | ||||||
|
| |||||||
Total Pharmaceuticals, Biotechnology & Life Sciences | 113,334,646 | |||||||
|
| |||||||
Real Estate—1.8% | ||||||||
20,169 | Apartment Investment & Management Co., Class A | 1,010,870 | ||||||
7,167 | AvalonBay Communities, Inc. | 1,456,191 | ||||||
16,366 | CBRE Group, Inc., Class A1 | 839,576 | ||||||
11,141 | Equity Commonwealth | 362,305 | ||||||
4,962 | Equity LifeStyle Properties, Inc. | 602,089 | ||||||
74 | Extra Space Storage, Inc. | 7,852 | ||||||
27,687 | HCP, Inc. | 885,430 | ||||||
57,291 | Host Hotels & Resorts, Inc. | 1,043,842 | ||||||
6,294 | Lamar Advertising Co., Class A | 507,989 | ||||||
34,762 | Medical Properties Trust, Inc. | 606,249 | ||||||
98 | Prologis, Inc. | 7,850 | ||||||
25,024 | Public Storage | 5,959,966 | ||||||
28,051 | Simon Property Group, Inc. | 4,481,428 | ||||||
10,515 | Weingarten Realty Investors | 288,321 | ||||||
|
| |||||||
Total Real Estate | 18,059,958 | |||||||
|
| |||||||
Retailing—6.6% | ||||||||
1,473 | AutoZone, Inc.1 | 1,619,519 | ||||||
2,417 | Booking Holdings, Inc.1 | 4,531,174 | ||||||
19,991 | Dollar General Corp. | 2,701,984 | ||||||
39 | eBay, Inc. | 1,541 | ||||||
12,220 | Genuine Parts Co. | 1,265,748 | ||||||
162,127 | Home Depot, Inc. (The) | 33,717,552 | ||||||
49,547 | Lowe’s Cos., Inc. | 4,999,788 | ||||||
5,232 | O’Reilly Automotive, Inc.1 | 1,932,282 | ||||||
31 | Pool Corp. | 5,921 | ||||||
37,618 | Ross Stores, Inc. | 3,728,696 | ||||||
117 | Target Corp. | 10,133 | ||||||
194,388 | TJX Cos., Inc. (The) | 10,279,237 | ||||||
7,195 | Tractor Supply Co. | 782,816 | ||||||
|
| |||||||
Total Retailing | 65,576,391 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.7% | ||||||||
320,221 | Intel Corp. | 15,328,979 | ||||||
92 | Maxim Integrated Products, Inc. | 5,504 | ||||||
104,318 | Texas Instruments, Inc. | 11,971,534 | ||||||
85 | Xilinx, Inc. | 10,023 | ||||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 27,316,040 | |||||||
|
|
The accompanying notes are an integral part of these financial statements.
| 17 |
|
Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Software & Services—19.5% | ||||||||
101,577 | Accenture PLC, Class A | $ | 18,768,382 | |||||
29,935 | Adobe, Inc.1 | 8,820,348 | ||||||
16,625 | Amdocs Ltd. | 1,032,246 | ||||||
6,926 | ANSYS, Inc.1 | 1,418,583 | ||||||
5,065 | Aspen Technology, Inc.1 | 629,478 | ||||||
56,309 | Automatic Data Processing, Inc. | 9,309,567 | ||||||
11,360 | Broadridge Financial Solutions, Inc. | 1,450,445 | ||||||
19,408 | Cadence Design Systems, Inc.1 | 1,374,281 | ||||||
35,441 | Cognizant Technology Solutions Corp., Class A | 2,246,605 | ||||||
1,372 | Fair Isaac Corp.1 | 430,835 | ||||||
20,726 | Fiserv, Inc.1 | 1,889,382 | ||||||
7,923 | Genpact Ltd. | 301,787 | ||||||
22,142 | Intuit, Inc. | 5,786,369 | ||||||
10,644 | Jack Henry & Associates, Inc. | 1,425,445 | ||||||
135,806 | Mastercard, Inc., Class A | 35,924,761 | ||||||
374,277 | Microsoft Corp. | 50,138,147 | ||||||
49,122 | Paychex, Inc. | 4,042,249 | ||||||
60 | Red Hat, Inc.1 | 11,266 | ||||||
12,752 | Synopsys, Inc.1 | 1,641,055 | ||||||
67 | Total System Services, Inc. | 8,594 | ||||||
10,602 | VeriSign, Inc.1 | 2,217,514 | ||||||
260,039 | Visa, Inc., Class A | 45,129,768 | ||||||
48,349 | Western Union Co. (The) | 961,662 | ||||||
|
| |||||||
Total Software & Services | 194,958,769 | |||||||
|
| |||||||
Technology Hardware & Equipment—7.4% | ||||||||
22,513 | Amphenol Corp., Class A | 2,159,897 | ||||||
253,431 | Apple, Inc. | 50,159,064 | ||||||
357,832 | Cisco Systems, Inc. | 19,584,145 | ||||||
5,937 | Dolby Laboratories, Inc., Class A | 383,530 | ||||||
3,633 | F5 Networks, Inc.1 | 529,074 | ||||||
12,101 | FLIR Systems, Inc. | 654,664 | ||||||
102 | Motorola Solutions, Inc. | 17,007 | ||||||
9,614 | National Instruments Corp. | 403,692 | ||||||
|
| |||||||
Total Technology Hardware & Equipment | 73,891,073 | |||||||
|
| |||||||
Transportation—1.7% | ||||||||
16,229 | C.H. Robinson Worldwide, Inc. | 1,368,916 | ||||||
26,189 | Expeditors International of Washington, Inc. | 1,986,698 | ||||||
9,371 | JB Hunt Transport Services, Inc. | 856,603 | ||||||
4,897 | Landstar System, Inc. | 528,827 | ||||||
4,278 | Old Dominion Freight Line, Inc. | 638,534 | ||||||
40,679 | Union Pacific Corp. | 6,879,226 | ||||||
49,068 | United Parcel Service, Inc., Class B | 5,067,252 | ||||||
|
| |||||||
Total Transportation | 17,326,056 | |||||||
|
| |||||||
Utilities—0.1% | ||||||||
114 | Alliant Energy Corp. | 5,595 | ||||||
115 | Ameren Corp. | 8,638 | ||||||
63 | American Water Works Co., Inc. | 7,308 | ||||||
37 | Aqua America, Inc. | 1,531 | ||||||
113 | Consolidated Edison, Inc. | 9,908 | ||||||
70 | DTE Energy Co. | 8,951 | ||||||
97 | Edison International | 6,539 | ||||||
2,468 | IDACORP, Inc. | 247,861 | ||||||
54 | PG&E Corp.1 | 1,238 | ||||||
64 | Sempra Energy | 8,796 | ||||||
88 | Southern Co. (The) | 4,865 | ||||||
10,252 | UGI Corp. | 547,559 | ||||||
110 | WEC Energy Group, Inc. | 9,171 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Utilities (continued) | ||||||||
66 | Xcel Energy, Inc. | $ | 3,926 | |||||
|
| |||||||
Total Utilities | 871,886 | |||||||
|
| |||||||
Total Common Stocks (Cost $934,959,701) | 998,872,212 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
520,245 | Premier U.S. Government Money Portfolio, 2.26%3 (Cost $520,245) | 520,245 | ||||||
|
| |||||||
Investment of Cash Collateral for Securities Loaned—0.0%4 | ||||||||
36,134 | Invesco Government & Agency Portfolio—Institutional Class, 2.27%3,5 | 36,134 | ||||||
12,040 | Invesco Liquid Assets Portfolio—Institutional Class, 2.41%3,5 | 12,045 | ||||||
|
| |||||||
Total Investment of Cash Collateral for Securities Loaned (Cost $48,179) | 48,179 | |||||||
|
| |||||||
Total Investments—100.1% (Cost $935,528,125) | 999,440,636 | |||||||
Liabilities in Excess of Other Assets—(0.1)% | (1,116,091 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 998,324,545 | ||||||
|
|
1. | Non-income producing security. |
2. | All or a portion of the security was on loan. The aggregate value of the security on loan was $46,755; total value of the collateral held by the Fund was $48,179. |
3. | 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 June 30, 2019. |
4. | Less than 0.05%. |
5. | 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 6. |
The accompanying notes are an integral part of these financial statements.
| 18 |
|
Schedule of Investments
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)
June 30, 2019
Shares | Value | |||||||
Common Stocks—100.1% | ||||||||
Automobiles & Components—1.7% | ||||||||
659 | Cooper Tire & Rubber Co. | $ | 20,791 | |||||
499 | Dorman Products, Inc.1 | 43,483 | ||||||
745 | Fox Factory Holding Corp.1 | 61,470 | ||||||
631 | Gentherm, Inc.1 | 26,395 | ||||||
1 | LCI Industries | 90 | ||||||
334 | Standard Motor Products, Inc. | 15,144 | ||||||
350 | Stoneridge, Inc.1 | 11,042 | ||||||
452 | Visteon Corp.1 | 26,478 | ||||||
|
| |||||||
Total Automobiles & Components | 204,893 | |||||||
|
| |||||||
Banks—15.0% | ||||||||
124 | 1st Source Corp. | 5,754 | ||||||
125 | Allegiance Bancshares, Inc.1 | 4,167 | ||||||
98 | American National Bankshares, Inc. | 3,797 | ||||||
500 | Ameris Bancorp | 19,595 | ||||||
118 | Arrow Financial Corp. | 4,098 | ||||||
201 | Atlantic Capital Bancshares, Inc.1 | 3,441 | ||||||
688 | Atlantic Union Bankshares Corp. | 24,307 | ||||||
175 | BancFirst Corp. | 9,740 | ||||||
759 | BancorpSouth Bank | 22,041 | ||||||
57 | Bank First Corp. | 3,931 | ||||||
120 | Bank of Marin Bancorp | 4,922 | ||||||
295 | Banner Corp. | 15,974 | ||||||
118 | Bar Harbor Bankshares | 3,138 | ||||||
399 | Berkshire Hills Bancorp, Inc. | 12,525 | ||||||
641 | Boston Private Financial Holdings, Inc. | 7,737 | ||||||
132 | Bridge Bancorp, Inc. | 3,889 | ||||||
695 | Brookline Bancorp, Inc. | 10,689 | ||||||
187 | Bryn Mawr Bank Corp. | 6,979 | ||||||
165 | Byline Bancorp, Inc.1 | 3,155 | ||||||
970 | Cadence BanCorp | 20,176 | ||||||
39 | Cambridge Bancorp | 3,178 | ||||||
137 | Camden National Corp. | 6,284 | ||||||
1,303 | Capitol Federal Financial, Inc. | 17,942 | ||||||
165 | Carolina Financial Corp. | 5,790 | ||||||
197 | Carter Bank & Trust1 | 3,891 | ||||||
681 | Cathay General Bancorp | 24,455 | ||||||
165 | CBTX, Inc. | 4,643 | ||||||
1,145 | CenterState Bank Corp. | 26,369 | ||||||
224 | Central Pacific Financial Corp. | 6,711 | ||||||
590 | Chemical Financial Corp. | 24,255 | ||||||
122 | Citizens & Northern Corp. | 3,212 | ||||||
152 | City Holding Co. | 11,592 | ||||||
115 | Civista Bancshares, Inc. | 2,582 | ||||||
121 | CNB Financial Corp. | 3,417 | ||||||
579 | Columbia Banking System, Inc. | 20,948 | ||||||
479 | Columbia Financial, Inc.1 | 7,233 | ||||||
476 | Community Bank System, Inc. | 31,340 | ||||||
148 | Community Trust Bancorp, Inc. | 6,259 | ||||||
272 | ConnectOne Bancorp, Inc. | 6,164 | ||||||
173 | Customers Bancorp, Inc.1 | 3,633 | ||||||
1,152 | CVB Financial Corp. | 24,227 | ||||||
268 | Dime Community Bancshares, Inc. | 5,089 | ||||||
306 | Eagle Bancorp, Inc. | 16,564 | ||||||
219 | Enterprise Financial Services Corp. | 9,110 | ||||||
110 | Equity Bancshares, Inc., Class A1 | 2,933 | ||||||
1,557 | Essent Group Ltd.1 | 73,163 | ||||||
211 | Farmers National Banc Corp. | 3,129 | ||||||
110 | FB Financial Corp. | 4,026 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Banks (Continued) | ||||||||
139 | Financial Institutions, Inc. | $ | 4,052 | |||||
260 | First Bancorp | 9,469 | ||||||
138 | First Bancshares, Inc. (The) | 4,187 | ||||||
460 | First Busey Corp. | 12,149 | ||||||
827 | First Commonwealth Financial Corp. | 11,140 | ||||||
133 | First Community Bankshares, Inc | 4,490 | ||||||
181 | First Defiance Financial Corp. | 5,171 | ||||||
814 | First Financial Bancorp | 19,715 | ||||||
1,123 | First Financial Bankshares, Inc. | 34,577 | ||||||
111 | First Financial Corp. | 4,458 | ||||||
315 | First Foundation, Inc. | 4,234 | ||||||
333 | First Interstate BancSystem, Inc., Class A | 13,190 | ||||||
474 | First Merchants Corp. | 17,965 | ||||||
117 | First Mid Bancshares, Inc. | 4,086 | ||||||
908 | First Midwest Bancorp, Inc. | 18,587 | ||||||
196 | First of Long Island Corp. (The) | 3,936 | ||||||
224 | Flagstar Bancorp, Inc. | 7,423 | ||||||
207 | Flushing Financial Corp. | 4,595 | ||||||
1,420 | Fulton Financial Corp. | 23,245 | ||||||
203 | German American Bancorp, Inc. | 6,114 | ||||||
730 | Glacier Bancorp, Inc. | 29,601 | ||||||
95 | Great Southern Bancorp, Inc. | 5,686 | ||||||
447 | Great Western Bancorp, Inc. | 15,967 | ||||||
607 | Hancock Whitney Corp. | 24,316 | ||||||
209 | Hanmi Financial Corp. | 4,654 | ||||||
285 | Heartland Financial USA, Inc. | 12,748 | ||||||
347 | Heritage Commerce Corp. | 4,251 | ||||||
323 | Heritage Financial Corp. | 9,541 | ||||||
508 | Hilltop Holdings, Inc. | 10,805 | ||||||
74 | Home Bancorp, Inc. | 2,848 | ||||||
1,319 | Home BancShares, Inc. | 25,404 | ||||||
173 | HomeStreet, Inc.1 | 5,128 | ||||||
144 | HomeTrust Bancshares, Inc. | 3,620 | ||||||
913 | Hope Bancorp, Inc. | 12,581 | ||||||
325 | Horizon Bancorp | 5,310 | ||||||
438 | IBERIABANK Corp. | 33,222 | ||||||
211 | Independent Bank Corp. | 4,598 | ||||||
285 | Independent Bank Corp. | 21,703 | ||||||
251 | Independent Bank Group, Inc. | 13,795 | ||||||
469 | International Bancshares Corp. | 17,686 | ||||||
2,043 | Investors Bancorp, Inc. | 22,779 | ||||||
725 | Kearny Financial Corp. | 9,635 | ||||||
421 | Lakeland Bancorp, Inc. | 6,799 | ||||||
226 | Lakeland Financial Corp. | 10,584 | ||||||
330 | LegacyTexas Financial Group, Inc. | 13,434 | ||||||
156 | Live Oak Bancshares, Inc. | 2,675 | ||||||
253 | Macatawa Bank Corp. | 2,596 | ||||||
130 | Mercantile Bank Corp. | 4,235 | ||||||
449 | Meridian Bancorp, Inc. | 8,033 | ||||||
1 | Meta Financial Group, Inc. | 28 | ||||||
156 | Midland States Bancorp, Inc. | 4,168 | ||||||
100 | MidWestOne Financial Group, Inc. | 2,796 | ||||||
96 | MMA Capital Holdings, Inc.1 | 3,213 | ||||||
256 | National Bank Holdings Corp., Class A | 9,293 | ||||||
379 | NBT Bancorp, Inc. | 14,216 | ||||||
74 | Nicolet Bankshares, Inc.1 | 4,592 | ||||||
613 | NMI Holdings, Inc., Class A1 | 17,403 | ||||||
414 | Northfield Bancorp, Inc. | 6,463 |
The accompanying notes are an integral part of these financial statements.
| 19 |
|
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Banks (Continued) | ||||||||
972 | Northwest Bancshares, Inc. | $ | 17,117 | |||||
463 | OceanFirst Financial Corp. | 11,506 | ||||||
133 | Old Line Bancshares, Inc. | 3,539 | ||||||
1,441 | Old National Bancorp | 23,906 | ||||||
234 | Old Second Bancorp, Inc. | 2,988 | ||||||
144 | Origin Bancorp, Inc. | 4,752 | ||||||
405 | Oritani Financial Corp. | 7,185 | ||||||
442 | Pacific Premier Bancorp, Inc. | 13,649 | ||||||
123 | Park National Corp. | 12,225 | ||||||
148 | PCSB Financial Corp. | 2,997 | ||||||
150 | Peapack Gladstone Financial Corp. | 4,218 | ||||||
177 | PennyMac Financial Services, Inc. | 3,926 | ||||||
163 | Peoples Bancorp, Inc. | 5,258 | ||||||
143 | People’s Utah Bancorp | 4,204 | ||||||
110 | Preferred Bank | 5,198 | ||||||
570 | Provident Financial Services, Inc. | 13,823 | ||||||
129 | QCR Holdings, Inc. | 4,498 | ||||||
2,830 | Radian Group, Inc. | 64,666 | ||||||
490 | Renasant Corp. | 17,611 | ||||||
87 | Republic Bancorp, Inc., Class A | 4,328 | ||||||
301 | S&T Bancorp, Inc. | 11,281 | ||||||
327 | Sandy Spring Bancorp, Inc. | 11,406 | ||||||
402 | Seacoast Banking Corp. of Florida1 | 10,227 | ||||||
418 | ServisFirst Bancshares, Inc. | 14,321 | ||||||
115 | Sierra Bancorp | 3,119 | ||||||
747 | Simmons First National Corp., Class A | 17,375 | ||||||
299 | South State Corp. | 22,027 | ||||||
190 | Southern National Bancorp of Virginia, Inc. | 2,909 | ||||||
252 | Southside Bancshares, Inc. | 8,160 | ||||||
186 | Stock Yards Bancorp, Inc. | 6,724 | ||||||
126 | Tompkins Financial Corp. | 10,282 | ||||||
587 | TowneBank | 16,013 | ||||||
239 | TriCo Bancshares | 9,034 | ||||||
160 | TriState Capital Holdings, Inc.1 | 3,414 | ||||||
154 | Triumph Bancorp, Inc.1 | 4,474 | ||||||
830 | TrustCo Bank Corp. NY | 6,574 | ||||||
575 | Trustmark Corp. | 19,119 | ||||||
350 | UMB Financial Corp. | 23,037 | ||||||
867 | United Bankshares, Inc. | 32,157 | ||||||
644 | United Community Banks, Inc. | 18,393 | ||||||
428 | United Community Financial Corp. | 4,096 | ||||||
443 | United Financial Bancorp, Inc. | 6,282 | ||||||
250 | Univest Financial Corp. | 6,565 | ||||||
2,840 | Valley National Bancorp | 30,615 | ||||||
376 | Veritex Holdings, Inc. | 9,757 | ||||||
254 | Walker & Dunlop, Inc. | 13,515 | ||||||
751 | Washington Federal, Inc. | 26,232 | ||||||
137 | Washington Trust Bancorp, Inc. | 7,149 | ||||||
268 | Waterstone Financial, Inc. | 4,572 | ||||||
478 | WesBanco, Inc. | 18,427 | ||||||
136 | West Bancorporation, Inc. | 2,886 | ||||||
224 | Westamerica Bancorporation | 13,801 | ||||||
482 | WSFS Financial Corp. | 19,907 | ||||||
|
| |||||||
Total Banks | 1,808,827 | |||||||
|
| |||||||
Capital Goods—9.8% | ||||||||
883 | AAON, Inc. | 44,309 | ||||||
362 | Albany International Corp., Class A | 30,013 | ||||||
1 | Altra Industrial Motion Corp. | 36 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Capital Goods (Continued) | ||||||||
194 | American Woodmark Corp.1 | $ | 16,416 | |||||
769 | Atkore International Group, Inc.1 | 19,894 | ||||||
375 | AZZ, Inc. | 17,257 | ||||||
908 | BMC Stock Holdings, Inc.1 | 19,250 | ||||||
692 | Comfort Systems USA, Inc. | 35,285 | ||||||
460 | Continental Building Products, Inc.1 | 12,222 | ||||||
426 | CSW Industrials, Inc. | 29,032 | ||||||
97 | Eastern Co. (The) | 2,718 | ||||||
1,400 | EMCOR Group, Inc. | 123,340 | ||||||
325 | Encore Wire Corp. | 19,039 | ||||||
293 | EnPro Industries, Inc. | 18,705 | ||||||
392 | ESCO Technologies, Inc. | 32,387 | ||||||
1,046 | Federal Signal Corp. | 27,981 | ||||||
1 | Foundation Building Materials, Inc.1 | 18 | ||||||
879 | Franklin Electric Co., Inc. | 41,753 | ||||||
441 | Gorman-Rupp Co. (The) | 14,478 | ||||||
148 | Graham Corp. | 2,991 | ||||||
1,650 | Hillenbrand, Inc. | 65,291 | ||||||
135 | Hurco Cos., Inc. | 4,801 | ||||||
224 | Insteel Industries, Inc. | 4,664 | ||||||
508 | John Bean Technologies Corp. | 61,534 | ||||||
216 | Kadant, Inc. | 19,615 | ||||||
565 | Kaman Corp. | 35,985 | ||||||
161 | Lindsay Corp. | 13,236 | ||||||
418 | Luxfer Holdings PLC | 10,249 | ||||||
996 | Meritor, Inc.1 | 24,153 | ||||||
226 | Miller Industries, Inc. | 6,950 | ||||||
843 | Mueller Industries, Inc. | 24,675 | ||||||
136 | National Presto Industries, Inc.2 | 12,687 | ||||||
35 | Omega Flex, Inc. | 2,688 | ||||||
428 | Proto Labs, Inc.1 | 49,657 | ||||||
455 | Quanex Building Products Corp. | 8,595 | ||||||
557 | Raven Industries, Inc. | 19,985 | ||||||
536 | RBC Bearings, Inc.1 | 89,410 | ||||||
1,440 | Simpson Manufacturing Co., Inc. | 95,702 | ||||||
189 | Standex International Corp. | 13,823 | ||||||
282 | Tennant Co. | 17,258 | ||||||
806 | Universal Forest Products, Inc. | 30,676 | ||||||
893 | Wabash National Corp. | 14,529 | ||||||
538 | Watts Water Technologies, Inc., Class A | 50,131 | ||||||
1 | Woodward, Inc. | 113 | ||||||
|
| |||||||
Total Capital Goods | 1,183,531 | |||||||
|
| |||||||
Commercial & Professional Services—9.1% | ||||||||
1,766 | ABM Industries, Inc. | 70,640 | ||||||
180 | BG Staffing, Inc. | 3,398 | ||||||
1,192 | Brady Corp., Class A | 58,790 | ||||||
1,187 | CBIZ, Inc.1 | 23,253 | ||||||
1,383 | Covanta Holding Corp. | 24,770 | ||||||
176 | CRA International, Inc. | 6,746 | ||||||
665 | Deluxe Corp. | 27,039 | ||||||
551 | Ennis, Inc. | 11,307 | ||||||
1,586 | Exponent, Inc. | 92,844 | ||||||
286 | Forrester Research, Inc. | 13,451 | ||||||
780 | FTI Consulting, Inc.1 | 65,395 | ||||||
3,490 | Healthcare Services Group, Inc. | 105,817 | ||||||
740 | Herman Miller, Inc. | 33,078 | ||||||
712 | HNI Corp. | 25,191 | ||||||
228 | ICF International, Inc. | 16,598 |
The accompanying notes are an integral part of these financial statements.
| 20 |
|
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Commercial & Professional Services (Continued) | ||||||||
885 | Insperity, Inc. | $ | 108,094 | |||||
829 | Kelly Services, Inc., Class A | 21,712 | ||||||
460 | Kforce, Inc. | 16,141 | ||||||
501 | Kimball International, Inc., Class B | 8,732 | ||||||
1,026 | Korn Ferry | 41,112 | ||||||
371 | McGrath RentCorp. | 23,058 | ||||||
838 | MSA Safety, Inc. | 88,317 | ||||||
823 | Navigant Consulting, Inc. | 19,085 | ||||||
277 | NRC Group Holdings Corp.1 | 3,080 | ||||||
1 | Steelcase, Inc., Class A | 17 | ||||||
1,124 | Tetra Tech, Inc. | 88,290 | ||||||
449 | UniFirst Corp. | 84,668 | ||||||
271 | Viad Corp. | 17,951 | ||||||
|
| |||||||
Total Commercial & Professional Services | 1,098,574 | |||||||
|
| |||||||
Consumer Durables & Apparel—3.2% | ||||||||
517 | Acushnet Holdings Corp. | 13,576 | ||||||
2,215 | Callaway Golf Co. | 38,009 | ||||||
129 | Cavco Industries, Inc.1 | 20,323 | ||||||
862 | Crocs, Inc.1 | 17,025 | ||||||
202 | Culp, Inc. | 3,838 | ||||||
524 | Deckers Outdoor Corp.1 | 92,208 | ||||||
531 | Ethan Allen Interiors, Inc. | 11,183 | ||||||
476 | Helen of Troy Ltd.1 | 62,161 | ||||||
65 | Johnson Outdoors, Inc., Class A | 4,847 | ||||||
845 | La-Z-Boy, Inc. | 25,908 | ||||||
237 | Oxford Industries, Inc. | 17,965 | ||||||
2,412 | Steven Madden Ltd. | 81,887 | ||||||
|
| |||||||
Total Consumer Durables & Apparel | 388,930 | |||||||
|
| |||||||
Consumer Services—4.9% | ||||||||
437 | BJ’s Restaurants, Inc. | 19,202 | ||||||
1 | Bloomin’ Brands, Inc. | 19 | ||||||
695 | Brinker International, Inc. | 27,348 | ||||||
1,283 | Cheesecake Factory, Inc. (The) | 56,093 | ||||||
913 | Churchill Downs, Inc. | 105,059 | ||||||
197 | Chuy’s Holdings, Inc.1 | 4,515 | ||||||
553 | Cracker Barrel Old Country Store, Inc.2 | 94,414 | ||||||
501 | Dave & Buster’s Entertainment, Inc. | 20,275 | ||||||
1,543 | Denny’s Corp.1 | 31,678 | ||||||
449 | International Speedway Corp., Class A | 20,156 | ||||||
320 | Lindblad Expeditions Holdings, Inc.1 | 5,744 | ||||||
39 | Nathan’s Famous, Inc. | 3,047 | ||||||
1,249 | OneSpaWorld Holdings Ltd.1 | 19,359 | ||||||
903 | Ruth’s Hospitality Group, Inc. | 20,507 | ||||||
1 | Sotheby’s1 | 58 | ||||||
138 | Speedway Motorsports, Inc. | 2,560 | ||||||
430 | Target Hospitality Corp.1 | 3,913 | ||||||
1,776 | Texas Roadhouse, Inc. | 95,318 | ||||||
703 | Wingstop, Inc. | 66,609 | ||||||
|
| |||||||
Total Consumer Services | 595,874 | |||||||
|
| |||||||
Diversified Financials—5.1% | ||||||||
262 | AG Mortgage Investment Trust, Inc. | 4,166 | ||||||
810 | Anworth Mortgage Asset Corp. | 3,070 | ||||||
2,346 | Apollo Commercial Real Estate Finance, Inc. | 43,143 | ||||||
306 | Ares Commercial Real Estate Corp. | 4,547 | ||||||
377 | Ares Management Corp., Class A | 9,866 | ||||||
389 | ARMOUR Residential REIT, Inc. | 7,251 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Diversified Financials (Continued) | ||||||||
798 | Artisan Partners Asset Management, Inc., Class A | $ | 21,961 | |||||
210 | Banco Latinoamericano de Comercio Exterior SA, Class E | 4,374 | ||||||
1,422 | Blackstone Mortgage Trust, Inc., Class A2 | 50,595 | ||||||
979 | BrightSphere Investment Group PLC | 11,170 | ||||||
553 | Cannae Holdings, Inc.1 | 16,026 | ||||||
723 | Capstead Mortgage Corp. | 6,037 | ||||||
173 | Cherry Hill Mortgage Investment Corp. | 2,768 | ||||||
421 | Cohen & Steers, Inc. | 21,656 | ||||||
63 | Diamond Hill Investment Group, Inc. | 8,928 | ||||||
204 | Dynex Capital, Inc. | 3,417 | ||||||
293 | Ellington Financial, Inc. | 5,265 | ||||||
1,717 | Federated Investors, Inc., Class B | 55,802 | ||||||
1,053 | FGL Holdings | 8,845 | ||||||
585 | FirstCash, Inc. | 58,512 | ||||||
642 | Granite Point Mortgage Trust, Inc. | 12,320 | ||||||
323 | Green Dot Corp., Class A1 | 15,795 | ||||||
338 | Hamilton Lane, Inc., Class A | 19,286 | ||||||
545 | Houlihan Lokey, Inc. | 24,269 | ||||||
101 | INTL. FCStone, Inc.1 | 3,999 | ||||||
986 | Invesco Mortgage Capital, Inc.3 | 15,894 | ||||||
274 | KKR Real Estate Finance Trust, Inc. | 5,458 | ||||||
1,063 | Ladder Capital Corp. | 17,656 | ||||||
680 | Moelis & Co., Class A | 23,766 | ||||||
124 | Nelnet, Inc., Class A | 7,343 | ||||||
1,680 | New York Mortgage Trust, Inc. | �� | 10,416 | |||||
777 | PennyMac Mortgage Investment Trust | 16,962 | ||||||
95 | Piper Jaffray Cos. | 7,056 | ||||||
189 | PJT Partners, Inc., Class A | 7,658 | ||||||
330 | Ready Capital Corp. | 4,917 | ||||||
871 | Redwood Trust, Inc. | 14,398 | ||||||
464 | Stifel Financial Corp. | 27,404 | ||||||
640 | TPG RE Finance Trust, Inc. | 12,346 | ||||||
44 | Virtus Investment Partners, Inc. | 4,726 | ||||||
888 | Waddell & Reed Financial, Inc., Class A | 14,803 | ||||||
390 | Western Asset Mortgage Capital Corp. | 3,892 | ||||||
138 | Westwood Holdings Group, Inc. | 4,858 | ||||||
|
| |||||||
Total Diversified Financials | 622,621 | |||||||
|
| |||||||
Energy—1.3% | ||||||||
855 | C&J Energy Services, Inc.1 | 10,072 | ||||||
1,120 | Delek US Holdings, Inc. | 45,382 | ||||||
474 | Dril-Quip, Inc.1 | 22,752 | ||||||
1,457 | Falcon Minerals Corp. | 12,239 | ||||||
796 | Jagged Peak Energy, Inc.1 | 6,583 | ||||||
50 | NACCO Industries, Inc., Class A | 2,597 | ||||||
658 | Par Pacific Holdings, Inc.1 | 13,502 | ||||||
105 | REX American Resources Corp.1 | 7,654 | ||||||
1 | SEACOR Holdings, Inc.1 | 47 | ||||||
758 | US Well Services, Inc.1 | 3,654 | ||||||
935 | World Fuel Services Corp. | 33,623 | ||||||
|
| |||||||
Total Energy | 158,105 | |||||||
|
| |||||||
Food & Staples Retailing—0.3% | ||||||||
531 | PriceSmart, Inc. | 27,145 | ||||||
122 | Village Super Market, Inc., Class A | 3,234 | ||||||
229 | Weis Markets, Inc. | 8,338 | ||||||
|
| |||||||
Total Food & Staples Retailing | 38,717 | |||||||
|
|
The accompanying notes are an integral part of these financial statements.
| 21 |
|
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Food, Beverage & Tobacco—3.2% | ||||||||
169 | Boston Beer Co., Inc. (The), Class A1 | $ | 63,841 | |||||
232 | Calavo Growers, Inc. | 22,444 | ||||||
830 | Cal-Maine Foods, Inc. | 34,627 | ||||||
393 | J&J Snack Foods Corp. | 63,253 | ||||||
132 | John B. Sanfilippo & Son, Inc. | 10,519 | ||||||
452 | Lancaster Colony Corp. | 67,167 | ||||||
159 | National Beverage Corp.2 | 7,096 | ||||||
319 | Sanderson Farms, Inc. | 43,563 | ||||||
947 | Simply Good Foods Co. (The)1 | 22,804 | ||||||
459 | Tootsie Roll Industries, Inc.2 | 16,951 | ||||||
319 | Universal Corp. | 19,386 | ||||||
1,616 | Vector Group Ltd. | 15,756 | ||||||
|
| |||||||
Total Food, Beverage & Tobacco | 387,407 | |||||||
|
| |||||||
Health Care Equipment & Services—7.2% | ||||||||
960 | Amedisys, Inc.1 | 116,554 | ||||||
54 | Atrion Corp. | 46,048 | ||||||
253 | CorVel Corp.1 | 22,014 | ||||||
1,094 | Ensign Group, Inc. (The) | 62,271 | ||||||
1,732 | Globus Medical, Inc., Class A1 | 73,264 | ||||||
1,136 | Haemonetics Corp.1 | 136,706 | ||||||
1 | HealthEquity, Inc.1 | 65 | ||||||
594 | HealthStream, Inc.1 | 15,361 | ||||||
585 | Magellan Health, Inc.1 | 43,425 | ||||||
1,134 | Meridian Bioscience, Inc. | 13,472 | ||||||
50 | Mesa Laboratories, Inc. | 12,217 | ||||||
489 | National HealthCare Corp. | 39,682 | ||||||
329 | National Research Corp. | 18,947 | ||||||
1,243 | Neogen Corp.1 | 77,203 | ||||||
1 | NextGen Healthcare, Inc.1 | 20 | ||||||
705 | Omnicell, Inc.1 | 60,651 | ||||||
216 | Providence Service Corp. (The)1 | 12,385 | ||||||
716 | Quidel Corp.1 | 42,473 | ||||||
200 | Simulations Plus, Inc. | 5,712 | ||||||
258 | Surmodics, Inc.1 | 11,138 | ||||||
371 | US Physical Therapy, Inc. | 45,473 | ||||||
132 | Utah Medical Products, Inc. | 12,632 | ||||||
|
| |||||||
Total Health Care Equipment & Services | 867,713 | |||||||
|
| |||||||
Household & Personal Products—1.3% | ||||||||
420 | Inter Parfums, Inc. | 27,926 | ||||||
216 | Medifast, Inc. | 27,713 | ||||||
102 | Oil-Dri Corp. of America | 3,472 | ||||||
178 | USANA Health Sciences, Inc.1 | 14,138 | ||||||
519 | WD-40 Co. | 82,542 | ||||||
|
| |||||||
Total Household & Personal Products | 155,791 | |||||||
|
| |||||||
Insurance—2.5% | ||||||||
251 | AMERISAFE, Inc. | 16,006 | ||||||
280 | Argo Group International Holdings Ltd. | 20,734 | ||||||
922 | CNO Financial Group, Inc. | 15,379 | ||||||
308 | Employers Holdings, Inc. | 13,019 | ||||||
79 | Enstar Group Ltd.1 | 13,768 | ||||||
82 | FBL Financial Group, Inc., Class A | 5,232 | ||||||
323 | Horace Mann Educators Corp. | 13,014 | ||||||
18 | Investors Title Co. | 3,006 | ||||||
268 | James River Group Holdings Ltd. | 12,569 | ||||||
210 | Kinsale Capital Group, Inc. | 19,211 | ||||||
594 | National General Holdings Corp. | 13,626 | ||||||
20 | National Western Life Group, Inc., Class A | 5,140 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Insurance (continued) | ||||||||
162 | NI Holdings, Inc.1 | $ | 2,853 | |||||
1 | Primerica, Inc. | 120 | ||||||
489 | ProAssurance Corp. | 17,658 | ||||||
413 | RLI Corp. | 35,398 | ||||||
206 | Safety Insurance Group, Inc. | 19,597 | ||||||
609 | Selective Insurance Group, Inc. | 45,608 | ||||||
135 | State Auto Financial Corp. | 4,725 | ||||||
262 | Stewart Information Services Corp. | 10,608 | ||||||
146 | United Fire Group, Inc. | 7,075 | ||||||
212 | Universal Insurance Holdings, Inc. | 5,915 | ||||||
|
| |||||||
Total Insurance | 300,261 | |||||||
|
| |||||||
Materials—5.2% | ||||||||
646 | Balchem Corp. | 64,581 | ||||||
678 | Boise Cascade Co. | 19,059 | ||||||
128 | Chase Corp. | 13,778 | ||||||
491 | Compass Minerals International, Inc. | 26,980 | ||||||
420 | FutureFuel Corp. | 4,910 | ||||||
424 | Global Brass & Copper Holdings, Inc. | 18,542 | ||||||
861 | H.B. Fuller Co. | 39,950 | ||||||
196 | Hawkins, Inc. | 8,508 | ||||||
468 | Innospec, Inc. | 42,700 | ||||||
310 | Kaiser Aluminum Corp. | 30,259 | ||||||
2,505 | Louisiana-Pacific Corp. | 65,681 | ||||||
282 | Materion Corp. | 19,122 | ||||||
481 | Myers Industries, Inc. | 9,269 | ||||||
370 | Neenah, Inc. | 24,993 | ||||||
1,087 | PolyOne Corp. | 34,121 | ||||||
345 | Quaker Chemical Corp. | 69,994 | ||||||
395 | Schnitzer Steel Industries, Inc., Class A | 10,337 | ||||||
405 | Schweitzer-Mauduit International, Inc. | 13,438 | ||||||
520 | Sensient Technologies Corp. | 38,210 | ||||||
346 | Stepan Co. | 31,801 | ||||||
464 | Tredegar Corp. | 7,712 | ||||||
41 | United States Lime & Minerals, Inc. | 3,280 | ||||||
907 | Warrior Met Coal, Inc. | 23,691 | ||||||
1 | Worthington Industries, Inc. | 40 | ||||||
|
| |||||||
Total Materials | 620,956 | |||||||
|
| |||||||
Media & Entertainment—0.7% | ||||||||
758 | IMAX Corp.1 | 15,311 | ||||||
225 | Loral Space & Communications, Inc.1 | 7,765 | ||||||
393 | Marcus Corp. (The) | 12,953 | ||||||
689 | MSG Networks, Inc., Class A1 | 14,290 | ||||||
213 | Reading International, Inc., Class A1 | 2,765 | ||||||
712 | Scholastic Corp. | 23,667 | ||||||
328 | TechTarget, Inc.1 | 6,970 | ||||||
1 | TEGNA, Inc. | 15 | ||||||
|
| |||||||
Total Media & Entertainment | 83,736 | |||||||
|
| |||||||
Real Estate—12.3% | ||||||||
679 | Acadia Realty Trust | 18,584 | ||||||
452 | Agree Realty Corp. | 28,951 | ||||||
23 | Alexander’s, Inc. | 8,517 | ||||||
429 | American Assets Trust, Inc. | 20,214 | ||||||
497 | Armada Hoffler Properties, Inc. | 8,225 | ||||||
903 | CareTrust REIT, Inc. | 21,473 | ||||||
448 | Chatham Lodging Trust | 8,454 | ||||||
790 | Chesapeake Lodging Trust | 22,452 | ||||||
475 | City Office REIT, Inc. | 5,695 |
The accompanying notes are an integral part of these financial statements.
| 22 |
|
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Real Estate (continued) | ||||||||
155 | Community Healthcare Trust, Inc. | $ | 6,109 | |||||
71 | Consolidated-Tomoka Land Co. | 4,239 | ||||||
775 | CoreCivic, Inc. | 16,089 | ||||||
113 | CorEnergy Infrastructure Trust, Inc.2 | 4,482 | ||||||
2,030 | DiamondRock Hospitality Co. | 20,990 | ||||||
596 | Easterly Government Properties, Inc. | 10,794 | ||||||
493 | EastGroup Properties, Inc. | 57,178 | ||||||
1,829 | First Industrial Realty Trust, Inc. | 67,197 | ||||||
1,008 | Four Corners Property Trust, Inc. | 27,549 | ||||||
807 | Franklin Street Properties Corp. | 5,956 | ||||||
105 | FRP Holdings, Inc.1 | 5,856 | ||||||
904 | GEO Group, Inc. (The) | 18,993 | ||||||
454 | Getty Realty Corp. | 13,965 | ||||||
270 | Gladstone Commercial Corp. | 5,729 | ||||||
596 | Global Net Lease, Inc. | 11,693 | ||||||
555 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 15,640 | ||||||
1,379 | Healthcare Realty Trust, Inc. | 43,190 | ||||||
262 | Hersha Hospitality Trust | 4,333 | ||||||
487 | HFF, Inc., Class A | 22,149 | ||||||
835 | Independence Realty Trust, Inc. | 9,661 | ||||||
809 | Industrial Logistics Properties Trust | 16,843 | ||||||
375 | iStar, Inc.2 | 4,657 | ||||||
283 | Jernigan Capital, Inc. | 5,801 | ||||||
1,066 | Kennedy-Wilson Holdings, Inc. | 21,928 | ||||||
471 | Kite Realty Group Trust | 7,126 | ||||||
3,534 | Lexington Realty Trust | 33,255 | ||||||
741 | LTC Properties, Inc. | 33,834 | ||||||
778 | Mack-Cali Realty Corp. | 18,120 | ||||||
278 | Marcus & Millichap, Inc.1 | 8,576 | ||||||
1,106 | Monmouth Real Estate Investment Corp. | 14,986 | ||||||
632 | National Health Investors, Inc. | 49,315 | ||||||
436 | National Storage Affiliates Trust | 12,618 | ||||||
1,070 | Newmark Group, Inc., Class A | 9,609 | ||||||
117 | NexPoint Residential Trust, Inc. | 4,844 | ||||||
523 | NorthStar Realty Europe Corp. | 8,593 | ||||||
172 | One Liberty Properties, Inc. | 4,981 | ||||||
895 | Pebblebrook Hotel Trust | 25,221 | ||||||
1,698 | Physicians Realty Trust | 29,613 | ||||||
1,605 | Piedmont Office Realty Trust, Inc., Class A | 31,988 | ||||||
963 | PotlatchDeltic, Corp. | 37,538 | ||||||
352 | Preferred Apartment Communities, Inc., Class A | 5,262 | ||||||
401 | PS Business Parks, Inc. | 67,580 | ||||||
346 | QTS Realty Trust, Inc., Class A | 15,978 | ||||||
210 | RE/MAX Holdings, Inc., Class A | 6,460 | ||||||
650 | Realogy Holdings Corp. | 4,706 | ||||||
1,091 | Retail Opportunity Investments Corp. | 18,689 | ||||||
1,078 | Rexford Industrial Realty, Inc. | 43,519 | ||||||
1,789 | RLJ Lodging Trust | 31,737 | ||||||
99 | RMR Group, Inc. (The), Class A | 4,651 | ||||||
667 | RPT Realty | 8,077 | ||||||
735 | Ryman Hospitality Properties, Inc. | 59,601 | ||||||
1,665 | Sabra Health Care REIT, Inc. | 32,784 | ||||||
138 | Saul Centers, Inc. | 7,746 | ||||||
2,579 | Senior Housing Properties Trust | 21,328 | ||||||
368 | St Joe Co. (The)1 | 6,359 | ||||||
1,411 | STAG Industrial, Inc. | 42,669 | ||||||
1,163 | Summit Hotel Properties, Inc. | 13,340 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Real Estate (continued) | ||||||||
3,227 | Sunstone Hotel Investors, Inc. | $ | 44,242 | |||||
852 | Tanger Factory Outlet Centers, Inc.2 | 13,811 | ||||||
153 | Tejon Ranch Co.1 | 2,538 | ||||||
790 | Terreno Realty Corp. | 38,742 | ||||||
157 | Universal Health Realty Income Trust | 13,334 | ||||||
1,356 | Urban Edge Properties | 23,499 | ||||||
363 | Urstadt Biddle Properties, Inc., Class A | 7,623 | ||||||
1,146 | Washington Prime Group, Inc.2 | 4,378 | ||||||
757 | Washington Real Estate Investment Trust | 20,235 | ||||||
337 | Whitestone REIT | 4,277 | ||||||
1,533 | Xenia Hotels & Resorts, Inc. | 31,963 | ||||||
|
| |||||||
Total Real Estate | 1,488,931 | |||||||
|
| |||||||
Retailing—3.5% | ||||||||
1,096 | Aaron’s, Inc. | 67,305 | ||||||
2,813 | American Eagle Outfitters, Inc. | 47,540 | ||||||
1,480 | Bed Bath & Beyond, Inc.2 | 17,198 | ||||||
495 | Buckle, Inc. (The)2 | 8,569 | ||||||
277 | Cato Corp., (The), Class A | 3,413 | ||||||
374 | Children’s Place, Inc. (The)2 | 35,672 | ||||||
170 | Citi Trends, Inc. | 2,485 | ||||||
753 | Core-Mark Holding Co., Inc. | 29,909 | ||||||
888 | Designer Brands, Inc., Class A | 17,023 | ||||||
1,279 | GameStop Corp., Class A | 6,996 | ||||||
478 | Haverty Furniture Cos., Inc. | 8,140 | ||||||
791 | Liberty Expedia Holdings, Inc., Class A1 | 37,802 | ||||||
1 | Monro, Inc. | 85 | ||||||
1,008 | Murphy USA, Inc.1 | 84,702 | ||||||
325 | PetMed Express, Inc.2 | 5,093 | ||||||
425 | Sleep Number Corp.1 | 17,166 | ||||||
1,362 | Waitr Holdings, Inc.1 | 8,567 | ||||||
156 | Weyco Group, Inc. | 4,167 | ||||||
89 | Winmark Corp. | 15,410 | ||||||
|
| |||||||
Total Retailing | 417,242 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.1% | ||||||||
542 | Advanced Energy Industries, Inc.1 | 30,498 | ||||||
628 | Cabot Microelectronics Corp. | 69,130 | ||||||
563 | Diodes, Inc.1 | 20,476 | ||||||
305 | DSP Group, Inc.1 | 4,380 | ||||||
304 | Nanometrics, Inc.1 | 10,552 | ||||||
100 | NVE Corp. | 6,963 | ||||||
991 | Photronics, Inc.1 | 8,126 | ||||||
566 | Power Integrations, Inc. | 45,382 | ||||||
490 | Rudolph Technologies, Inc.1 | 13,539 | ||||||
831 | Semtech Corp.1 | 39,930 | ||||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 248,976 | |||||||
|
| |||||||
Software & Services—3.1% | ||||||||
220 | Agilysys, Inc.1 | 4,723 | ||||||
413 | American Software, Inc., Class A | 5,431 | ||||||
524 | CommVault Systems, Inc.1 | 26,001 | ||||||
746 | EVERTEC, Inc. | 24,394 | ||||||
363 | Hackett Group, Inc. (The) | 6,095 | ||||||
1 | j2 Global, Inc. | 89 | ||||||
1 | KBR, Inc. | 25 | ||||||
1,212 | LiveRamp Holdings, Inc.1 | 58,758 | ||||||
733 | ManTech International Corp., Class A | 48,268 | ||||||
1,283 | MAXIMUS, Inc. | 93,069 |
The accompanying notes are an integral part of these financial statements.
| 23 |
|
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)(continued)
June 30, 2019
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Software & Services (continued) | ||||||||
1 | MicroStrategy, Inc., Class A1 | $ | 143 | |||||
1,162 | NIC, Inc. | 18,639 | ||||||
1 | Perficient, Inc.1 | 34 | ||||||
990 | Progress Software Corp. | 43,184 | ||||||
145 | QAD, Inc., Class A | 5,830 | ||||||
992 | Sykes Enterprises, Inc.1 | 27,240 | ||||||
254 | TTEC Holdings, Inc. | 11,834 | ||||||
|
| |||||||
Total Software & Services | 373,757 | |||||||
|
| |||||||
Technology Hardware & Equipment—2.1% | ||||||||
555 | ADTRAN, Inc. | 8,464 | ||||||
1,160 | AVX Corp. | 19,256 | ||||||
724 | Badger Meter, Inc. | 43,216 | ||||||
719 | Benchmark Electronics, Inc. | 18,061 | ||||||
802 | CTS Corp. | 22,119 | ||||||
455 | Daktronics, Inc. | 2,807 | ||||||
327 | Digi International, Inc.1 | 4,146 | ||||||
1 | Fabrinet1 | 50 | ||||||
439 | Insight Enterprises, Inc.1 | 25,550 | ||||||
536 | Kimball Electronics, Inc.1 | 8,705 | ||||||
156 | Napco Security Technologies, Inc.1 | 4,630 | ||||||
460 | Park Electrochemical Corp. | 7,677 | ||||||
579 | Plexus Corp.1 | 33,796 | ||||||
3,034 | Vishay Intertechnology, Inc. | 50,122 | ||||||
217 | Vishay Precision Group, Inc.1 | 8,817 | ||||||
|
| |||||||
Total Technology Hardware & Equipment | 257,416 | |||||||
|
| |||||||
Telecommunication Services—0.2% | ||||||||
207 | ATN International, Inc. | 11,950 | ||||||
339 | Spok Holdings, Inc. | 5,099 | ||||||
|
| |||||||
Total Telecommunication Services | 17,049 | |||||||
|
| |||||||
Transportation—1.0% | ||||||||
621 | Daseke, Inc.1,2 | 2,235 | ||||||
894 | Forward Air Corp. | 52,880 | ||||||
1,180 | Heartland Express, Inc.2 | 21,323 | ||||||
813 | Marten Transport Ltd. | 14,756 | ||||||
1,028 | Werner Enterprises, Inc. | 31,950 | ||||||
|
| |||||||
Total Transportation | 123,144 | |||||||
|
| |||||||
Utilities—5.3% | ||||||||
829 | ALLETE, Inc. | 68,981 | ||||||
530 | American States Water Co. | 39,877 | ||||||
777 | Avista Corp. | 34,654 | ||||||
1 | Black Hills Corp. | 78 | ||||||
662 | California Water Service Group | 33,517 | ||||||
197 | Chesapeake Utilities Corp. | 18,719 | ||||||
272 | Consolidated Water Co. Ltd. | 3,879 | ||||||
509 | El Paso Electric Co. | 33,289 | ||||||
488 | MGE Energy, Inc. | 35,663 | ||||||
1,738 | New Jersey Resources Corp. | 86,500 | ||||||
1 | Northwest Natural Holding Co. | 70 | ||||||
609 | NorthWestern Corp. | 43,939 | ||||||
797 | ONE Gas, Inc. | 71,969 | ||||||
1 | Ormat Technologies, Inc. | 63 | ||||||
517 | Otter Tail Corp. | 27,303 | ||||||
1,272 | Portland General Electric Co. | 68,904 | ||||||
305 | Pure Cycle Corp.1 | 3,233 | ||||||
1 | South Jersey Industries, Inc. | 34 |
Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Utilities (Continued) | ||||||||
664 | Spire, Inc. | $ | 55,723 | |||||
200 | Unitil Corp. | 11,978 | ||||||
|
| |||||||
Total Utilities | 638,373 | |||||||
|
| |||||||
Total Common Stocks (Cost $11,075,847) | 12,080,824 | |||||||
|
| |||||||
Investment of Cash Collateral for Securities Loaned—2.6% | ||||||||
235,578 | Invesco Government & Agency Portfolio—Institutional Class, 2.27%4,5 | 235,578 | ||||||
79,188 | Invesco Liquid Assets Portfolio—Institutional Class, 2.41%4,5 | 79,219 | ||||||
|
| |||||||
Total Investment of Cash Collateral for Securities Loaned (Cost $314,796) | 314,797 | |||||||
|
| |||||||
Total Investments—102.7% (Cost $11,390,643) | 12,395,621 | |||||||
Liabilities in Excess of Other Assets—(2.7)% | (324,837 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 12,070,784 | ||||||
|
|
REIT—Real Estate Investment Trust
1. | Non-income producing security. |
2. | All or a portion of the security was on loan. The aggregate value of the securities on loan was $283,914; total value of the collateral held by the Fund was $314,797. |
3. | Affiliated security (Note 4). |
4. | 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 June 30, 2019. |
5. | 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 6. |
The accompanying notes are an integral part of these financial statements.
| 24 |
|
Statements of Assets and Liabilities
June 30, 2019
Invesco ESG Revenue ETF (ESGL) | Invesco Russell 1000® Dynamic Multifactor ETF (OMFL) | Invesco Russell 2000® Dynamic Multifactor ETF (OMFS) | ||||||||||
Assets: | ||||||||||||
Unaffiliated investments in securities, at value (including securities on loan)1 | $ | 28,262,360 | $ | 998,872,212 | $ | 12,064,930 | ||||||
Affiliated investments in securities, at value | 149,188 | 568,424 | 330,691 | |||||||||
Receivables and other assets: | ||||||||||||
Dividends | 38,006 | 777,754 | 22,485 | |||||||||
Capital shares sold | 470 | 175,901,913 | — | |||||||||
Investments sold | — | 337,133,919 | 5,601,435 | |||||||||
Securities lending | 12 | 21 | 93 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 28,450,036 | 1,513,254,243 | 18,019,634 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Payables and other liabilities: | ||||||||||||
Investment of cash collateral for securities on loan | 127,296 | 48,179 | 314,797 | |||||||||
Due to custodian | 14,726 | — | 2,015 | |||||||||
Investments purchased | — | 337,853,283 | 2,945,357 | |||||||||
Shares Repurchased | — | 176,792,539 | 2,682,794 | |||||||||
Accrued unitary management fees | 9,250 | 235,697 | 3,887 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 151,272 | 514,929,698 | 5,948,850 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 28,298,764 | $ | 998,324,545 | $ | 12,070,784 | ||||||
|
|
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||||
Shares of beneficial interest | $ | 26,598,631 | $ | 962,194,672 | $ | 13,404,963 | ||||||
Total distributable earnings (accumulated loss) | 1,700,133 | 36,129,873 | (1,334,179 | ) | ||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 28,298,764 | $ | 998,324,545 | $ | 12,070,784 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding (unlimited number of shares of beneficial interest authorized, without par value) | 900,000 | 33,600,000 | 450,000 | |||||||||
Net asset value, offering and redemption price per share | $ | 31.44 | $ | 29.71 | $ | 26.82 | ||||||
|
|
|
|
|
| |||||||
Market price | $ | 31.47 | $ | 29.71 | $ | 26.82 | ||||||
|
|
|
|
|
| |||||||
Unaffiliated investments in securities, at cost | $ | 25,662,598 | $ | 934,959,701 | $ | 11,060,868 | ||||||
|
|
|
|
|
| |||||||
Affiliated investments in securities, at cost | $ | 153,582 | $ | 568,424 | $ | 329,775 | ||||||
|
|
|
|
|
| |||||||
1. Includes securities on loan with an aggregate value of: | $ | 124,914 | $ | 46,755 | $ | 283,914 | ||||||
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
| 25 |
|
For the year ended June 30, 2019
Invesco ESG Revenue ETF (ESGL) | Invesco Russell 1000® Dynamic Multifactor ETF (OMFL) | Invesco Russell 2000® Dynamic Multifactor ETF (OMFS) | ||||||||||
Investment Income: | ||||||||||||
Unaffiliated dividend income | $ | 746,886 | $ | 10,185,709 | $ | 241,740 | ||||||
Affiliated dividend income | 1,421 | 2,916 | 1,805 | |||||||||
Foreign withholding tax | — | (37 | ) | (21 | ) | |||||||
Securities lending income | 523 | 161,249 | 4,095 | |||||||||
|
|
|
|
|
| |||||||
Total Income | 748,830 | 10,349,837 | 247,619 | |||||||||
|
|
|
|
|
| |||||||
Expenses: | ||||||||||||
Unitary management fees | 102,585 | 1,358,995 | 47,931 | |||||||||
|
|
|
|
|
| |||||||
Less fees waived | (8 | ) | (267 | ) | (2 | ) | ||||||
|
|
|
|
|
| |||||||
Net Expenses | 102,577 | 1,358,728 | 47,929 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 646,253 | 8,991,109 | 199,690 | |||||||||
|
|
|
|
|
| |||||||
Net Realized and Unrealized Gain (Loss) from: | ||||||||||||
Net realized loss on investments | (592,280 | ) | (30,937,916 | ) | (1,711,367 | ) | ||||||
Net realized loss on affiliated investments | (4,487 | ) | — | (2,423 | ) | |||||||
Net realized gain onin-kind redemptions | 1,381,024 | 41,089,534 | 1,220,218 | |||||||||
Net realized gain (loss) onin-kind redemptions on affiliates | 438 | — | (5 | ) | ||||||||
|
|
|
|
|
| |||||||
Total net realized gain (loss) | 784,695 | 10,151,618 | (493,577 | ) | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation on unaffiliated investments | 448,785 | 65,150,207 | 486,601 | |||||||||
Net change in unrealized appreciation (depreciation) on affiliated investments | (641 | ) | — | 1,670 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation | 448,144 | 65,150,207 | 488,271 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) on investments | 1,232,839 | 75,301,825 | (5,306 | ) | ||||||||
|
|
|
|
|
| |||||||
Net Increase in Net Assets Resulting From Operations | $ | 1,879,092 | $ | 84,292,934 | $ | 194,384 | ||||||
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
| 26 |
|
Statements of Changes in Net Assets
For the year ended June 30, 2019 and the period ended June 30, 2018
Invesco ESG Revenue ETF (ESGL) | Invesco Russell 1000® Dynamic Multifactor ETF (OMFL) | Invesco Russell 2000® Dynamic Multifactor ETF (OMFS) | ||||||||||||||||||||||
Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2019 | For the Period November 8, 20171 to June 30, 2018 | Year Ended June 30, 2019 | For the Period November 8, 20171 to June 30, 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 646,253 | $ | 513,363 | $ | 8,991,109 | $ | 235,636 | $ | 199,690 | $ | 109,876 | ||||||||||||
Net realized gain (loss) on investments andin-kind redemptions | 784,695 | 1,718,578 | 10,151,618 | (10,373 | ) | (493,577 | ) | 591,808 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 448,144 | 47,156 | 65,150,207 | (1,237,696 | ) | 488,271 | 516,707 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,879,092 | 2,279,097 | 84,292,934 | (1,012,433 | ) | 194,384 | 1,218,391 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders from: | ||||||||||||||||||||||||
Distributable earnings | (668,150 | ) | (603,824 | ) | (8,357,048 | ) | (143,972 | ) | (197,838 | ) | (89,510 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shareholder Transactions: | ||||||||||||||||||||||||
Proceeds from shares sold | 11,686,750 | 12,307,274 | 1,156,693,709 | 186,408,815 | 9,051,529 | 33,426,706 | ||||||||||||||||||
Value of shares repurchased | (7,457,787 | ) | (13,859,701 | ) | (384,896,789 | ) | (34,660,671 | ) | (10,538,081 | ) | (20,994,797 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from shareholder transactions | 4,228,963 | (1,552,427 | ) | 771,796,920 | 151,748,144 | (1,486,552 | ) | 12,431,909 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Increase (Decrease) in net assets | 5,439,905 | 122,846 | 847,732,806 | 150,591,739 | (1,490,006 | ) | 13,560,790 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period or year | 22,858,859 | 22,736,013 | 150,591,739 | — | 13,560,790 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of period or year | $ | 28,298,764 | $ | 22,858,859 | $ | 998,324,545 | $ | 150,591,739 | $ | 12,070,784 | $ | 13,560,790 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in Shares Outstanding: | ||||||||||||||||||||||||
Shares outstanding, beginning of period or year | 750,000 | 800,000 | 5,650,000 | — | 500,000 | — | ||||||||||||||||||
Shares sold | 400,000 | 400,000 | 41,350,000 | 6,950,000 | 350,000 | 1,300,000 | ||||||||||||||||||
Shares repurchased | (250,000 | ) | (450,000 | ) | (13,400,000 | ) | (1,300,000 | ) | (400,000 | ) | (800,000 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Shares outstanding, end of period or year | 900,000 | 750,000 | 33,600,000 | 5,650,000 | 450,000 | 500,000 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1. | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
| 27 |
|
Invesco ESG Revenue ETF (ESGL)
Years Ended June 30, | For the Period October 31, 20161 Through June 30, 2017 | |||||||||||
2019 | 2018 | |||||||||||
Per Share Operating Performance: | ||||||||||||
Net asset value, beginning of period | $ | 30.48 | $ | 28.42 | $ | 25.00 | ||||||
Net investment income2 | 0.78 | 0.66 | 0.40 | |||||||||
Net realized and unrealized gain on investments | 1.00 | 2.16 | 3.28 | |||||||||
Total gain from investment operations | 1.78 | 2.82 | 3.68 | |||||||||
Less Distributions from: | ||||||||||||
Net investment income | (0.78 | ) | (0.76 | ) | (0.26 | ) | ||||||
Realized gains | (0.04 | ) | — | — | ||||||||
Total distributions | (0.82 | ) | (0.76 | ) | (0.26 | ) | ||||||
Net asset value, end of period | $ | 31.44 | $ | 30.48 | $ | 28.42 | ||||||
Market price, end of period | $ | 31.47 | 3 | |||||||||
Total Return at Net Asset Value4 | 5.95 | % | 9.96 | % | 14.78 | % | ||||||
Total Return at Market Value4 | 6.05 | % | 9.93 | % | 14.82 | % | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000’s omitted) | $ | 28,299 | $ | 22,859 | $ | 22,736 | ||||||
Ratio to average net assets of: | ||||||||||||
Expenses, net waivers | 0.40 | % | 0.40 | % | 0.40 | %5 | ||||||
Expenses, prior to waivers | 0.40 | % | 0.47 | % | 0.78 | %5 | ||||||
Net investment income, net of waivers | 2.52 | % | 2.19 | % | 2.22 | %5 | ||||||
Portfolio turnover rate6 | 34 | % | 27 | % | 42 | % |
1. | Commencement of operations. |
2. | Based on average daily shares outstanding. |
3. | The mean between the last bid and ask prices. |
4. | 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 on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period. Market value is determined by trading that occurs on the NYSE Arca, and may be greater or less than net asset value, depending on the 4 p.m. mean of the bid and offer prices for a share of the Fund. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been waived by the Adviser. |
5. | Annualized for periods less than one full year. |
6. | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result ofin-kind creations or redemptions of the Fund’s capital shares. |
The accompanying notes are an integral part of these financial statements.
| 28 |
|
Financial Highlights(continued)
Invesco Russell 1000® Dynamic Multifactor ETF (OMFL)
Year Ended June 30, 2019 | For the Period November 08, 20171 Through June 30, 2018 | |||||||
Per Share Operating Performance: | ||||||||
Net asset value, beginning of period | $ | 26.65 | $ | 25.00 | ||||
Net investment income2 | 0.54 | 0.22 | ||||||
Net realized and unrealized gain on investments | 2.99 | 1.59 | ||||||
Total gain from investment operations | 3.53 | 1.81 | ||||||
Less Distributions from: | ||||||||
Net investment income | (0.47 | ) | (0.16 | ) | ||||
Net asset value, end of period | $ | 29.71 | $ | 26.65 | ||||
Market price, end of period | $ | 29.71 | 3 | |||||
Total Return at Net Asset Value4 | 13.37 | % | 7.26 | % | ||||
Total Return at Market Value4 | 13.32 | % | 7.28 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000’s omitted) | $ | 998,325 | $ | 150,592 | ||||
Ratio to average net assets of: | ||||||||
Expenses, net waivers | 0.29 | % | 0.29 | %5 | ||||
Expenses, prior to waivers | 0.29 | % | 0.29 | %5 | ||||
Net investment income, net of waivers | 1.92 | % | 1.42 | %5 | ||||
Portfolio turnover rate6 | 138 | % | 213 | % |
1. | Commencement of operations. |
2. | Based on average daily shares outstanding. |
3. | The mean between the last bid and ask prices. |
4. | 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 on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period. Market value is determined by trading that occurs on the Cboe BZX Exchange, and may be greater or less than net asset value, depending on the 4 p.m. mean of the bid and offer prices for a share of the Fund. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been waived by the Adviser. |
5. | Annualized for periods less than one full year. |
6. | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result ofin-kind creations or redemptions of the Fund’s capital shares. |
The accompanying notes are an integral part of these financial statements.
| 29 |
|
Financial Highlights(continued)
Invesco Russell 2000® Dynamic Multifactor ETF (OMFS)
Year Ended June 30, 2019 | For the Period November 08, 20171 Through June 30, 2018 | |||||||
Per Share Operating Performance: | ||||||||
Net asset value, beginning of period | $ | 27.12 | $ | 25.00 | ||||
Net investment income2 | 0.43 | 0.22 | ||||||
Net realized and unrealized gain (loss) on investments | (0.29 | ) | 2.08 | |||||
Total gain from investment operations | 0.14 | 2.30 | ||||||
Less Distributions from: | ||||||||
Net investment income | (0.44 | ) | (0.18 | ) | ||||
Net asset value, end of period | $ | 26.82 | $ | 27.12 | ||||
Market price, end of period | $ | 26.82 | 3 | |||||
Total Return at Net Asset Value4 | 0.63 | % | 9.22 | % | ||||
Total Return at Market Value4 | 0.59 | % | 9.21 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000’s omitted) | $ | 12,071 | $ | 13,561 | ||||
Ratio to average net assets of: | ||||||||
Expenses, net waivers | 0.39 | % | 0.39 | %5 | ||||
Expenses, prior to waivers | 0.39 | % | 0.39 | %5 | ||||
Net investment income, net of waivers | 1.62 | % | 1.30 | %5 | ||||
Portfolio turnover rate6 | 189 | % | 173 | % |
1. | Commencement of operations. |
2. | Based on average daily shares outstanding. |
3. | The mean between the last bid and ask prices. |
4. | 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 on the last day of the period at net asset value. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period. Market value is determined by trading that occurs on the Cboe BZX Exchange, and may be greater or less than net asset value, depending on the 4 p.m. mean of the bid and offer prices for a share of the Fund. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been waived by the Adviser. |
5. | Annualized for periods less than one full year. |
6. | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result ofin-kind creations or redemptions of the Fund’s capital shares. |
The accompanying notes are an integral part of these financial statements.
| 30 |
|
Invesco Exchange-Traded Self-Indexed Fund Trust
June 30, 2019
Note 1—Organization
Invesco Exchange-Traded Self-Indexed Fund Trust (the “Trust”) was organized as a Delaware statutory trust on October 30, 2015 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 | Predecessor Fund (as defined below) | Short Name | ||
Invesco ESG Revenue ETF | Oppenheimer ESG Revenue ETF | ESG Revenue ETF | ||
Invesco Russell 1000® Dynamic Multifactor ETF | Oppenheimer Russell 1000® Dynamic Multifactor ETF | Russell 1000® Dynamic Multifactor ETF | ||
Invesco Russell 2000® Dynamic Multifactor ETF | Oppenheimer Russell 2000® Dynamic Multifactor ETF | Russell 2000® Dynamic Multifactor 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.” ESG Revenue ETF fund shares are listed and traded on NYSE Arca, Inc. and Russell 1000® Dynamic Multifactor ETF and Russell 2000® Dynamic Multifactor ETF fund shares are listed and traded on Cboe BZX Exchange, Inc.
Each Fund acquired all or substantially all of the assets and all of the stated liabilities included in the financial statements of a corresponding fund of the Oppenheimer ETF Trust (a “Predecessor Fund”) after the close of business on May 24, 2019 (each, a “Reorganization). Each Fund adopted the performance and financial information of its corresponding Predecessor Fund. Information presented prior to the close of business on May 24, 2019 is that of the Predecessor Fund.
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 are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek to track the investment results (before fees and expenses) of its respective index listed below (each, an “Underlying Index”):
Fund | Underlying Index | |
ESG Revenue ETF | Invesco Revenue Weighted ESG Index™ | |
Russell 1000® Dynamic Multifactor ETF | Russell 1000® Invesco Dynamic Multifactor Index | |
Russell 2000® Dynamic Multifactor ETF | Russell 2000® Invesco Dynamic Multifactor Index |
Note 2—Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946,Financial Services—Investment Companies.
A. | Security Valuation — Securities, including restricted securities, are valued according to the following policies: |
A security listed or traded on an exchange (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
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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 Invesco Capital Management LLC (the “Adviser”), determines are significant and make the closing price unreliable, the 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 (“ADRs”) and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, 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.
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 |
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 held by each Fund are traded outside a collateralized settlement system. In that case, APs may be required to post collateral on certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with processing 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 (as defined below), this may result in a significantly diminished trading market for Shares, which may be more likely to trade at a premium or discount to each Fund’s net asset value (“NAV”) and to face trading halts and/or delisting.
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
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event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.
Index Risk. Unlike many investment companies, each Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, it would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.
Industry Concentration Risk. In following its methodology, each 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, each 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 the 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.
Non-Correlation Risk. Each Fund’s return may not match the return of the Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing each Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, costs or liquidity constraints.
Non-Diversified Fund Risk. Because each Fund 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 the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.
Portfolio Turnover Risk. Each Fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to each 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 each Fund. While a high portfolio turnover rate can result in an increase in taxable capital gains distributions to each Fund’s shareholders, the Fund will seek to utilize thein-kind creation and redemption mechanism (described below) to minimize realization of capital gains to the extent possible.
REIT Risk. For certain Funds, in addition to the risks pertaining to real estate investments more generally, REITs are subject to additional risks. The value of a REIT can depend on the structure of and cash flow generated by the REIT. REITs whose investments are concentrated in a limited number or type of properties, investments or narrow geographic area are subject to the risks affecting those properties or areas to a greater extent than a REIT with less concentrated investments. REITs are also subject to certain requirements under federal tax law. In addition, REITs may have expenses, including advisory and administration expenses, and each Fund and its shareholders will incur its pro rata share of the underlying expenses.
C. | Country Determination — For the purposes of presentation in the Schedules of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include whether the 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. |
D. | Foreign Currency Translations — The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. |
The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.
E. | 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 and non-cash dividend income received in the form |
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of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. |
The Funds may periodically participate in litigation related to 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.
F. | Accounting Estimates — The preparation of the financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
G. | Dividends and Distributions to Shareholders — Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end. |
H. | Expenses — Expenses of the Trust which are directly identifiable to a specific Fund are applied to that Fund. Expenses which 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. |
Each Fund 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 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.
I. | Federal Income Taxes — The Funds intend to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of their investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Funds’ tax return filings generally remains open for the three preceding fiscal reporting period ends. The Funds have analyzed their tax positions for the fiscal year ended June 30, 2019, including open tax years, and do not believe there are any uncertain tax positions requiring recognition in the Funds’ financial statements. |
The tax components of capital shown in the following table represent distribution requirements the Funds must satisfy under the income tax regulations, losses the Funds may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.
Fund | Undistributed Net Investment Income | Undistributed Long-Term Gain | Capital Loss Carryforwards | Post-October Capital Losses | Net Unrealized Appreciation (Depreciation) Based on Cost of Securities and Other Investments for Federal Income Tax Purposes | |||||||||||||||
ESG Revenue ETF | $ | 29,738 | $ | — | $ | — | $ | (533,022 | ) | $ | 2,203,417 | |||||||||
Russell 1000® Dynamic Multifactor ETF | 726,119 | — | (23,265,662 | ) | — | 58,669,376 | ||||||||||||||
Russell 2000® Dynamic Multifactor ETF | 22,419 | — | (1,838,794 | ) | — | 482,196 |
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At June 30, 2019, the Funds have capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.
Fund | Short Term Post- Effective No Expiration | Long Term Post- Effective No Expiration | Total | |||||||||
ESG Revenue ETF | $ | — | $ | — | $ | — | ||||||
Russell 1000® Dynamic Multifactor ETF | 23,206,825 | 58,797 | 23,265,622 | |||||||||
Russell 2000® Dynamic Multifactor ETF | 1,739,576 | 99,218 | 1,838,794 |
Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains are determined in accordance with federal income tax requirements, which may differ from the character of net investment income or net realized gains presented in these financial statements in accordance with U.S. GAAP. Also, due to timing of dividend and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Funds.
Accordingly, the following amounts have been reclassified for the reporting periods. Net assets of each Fund were unaffected by the reclassifications.
Fund | Increase (Decrease) toPaid-in-Capital | Increase (Decrease) to Accumulated Net Investment Income | Increase (Decrease) to Accumulated Net Realized Gain/Loss on Investments | |||||||||
ESG Revenue ETF | $ | 1,329,456 | $ | — | $ | (1,329,456 | ) | |||||
Russell 1000® Dynamic Multifactor ETF | 37,374,683 | 394 | (37,375,077 | ) | ||||||||
Russell 2000® Dynamic Multifactor ETF | 1,016,213 | 180 | (1,016,393 | ) |
The tax character of distributions paid during the reporting periods:
Year Ended June 30, 2019 | Period Ended June 30, 2018 | |||||||||||||||||||||||
Fund | Distributions Paid from Ordinary Income | Distributions Paid from Long-Term Capital Gains | Total | Distributions Paid from Ordinary Income | Distributions Paid from Long-Term Capital Gains | Total | ||||||||||||||||||
ESG Revenue ETF | $ | 668,150 | $ | — | $ | 668,150 | $ | 603,824 | $ | — | $ | 603,824 | ||||||||||||
Russell 1000® Dynamic Multifactor ETF | 8,357,048 | — | 8,357,048 | 143,972 | — | 143,972 | ||||||||||||||||||
Russell 2000® Dynamic Multifactor ETF | 197,838 | — | 197,838 | 89,510 | — | 89,510 |
At June 30, 2019, the aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses on wash sales.
Fund | Federal Tax Cost of Securities | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | ||||||||||||
ESG Revenue ETF | $ | 26,208,131 | $ | 3,658,494 | $(1,455,077 | ) | $ | 2,203,417 | ||||||||
Russell 1000® Dynamic Multifactor ETF | 940,771,260 | 70,306,265 | (11,636,889 | ) | 58,669,376 | |||||||||||
Russell 2000® Dynamic Multifactor ETF | 11,913,425 | 1,074,093 | (591,897 | ) | 482,196 |
J. | 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 June 30, 2018, distributions from distributable earnings for each Fund consisted of distributions from net investment income.
Note 3—Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of each Fund’s investments, managing each Fund’s business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to the Investment Advisory Agreement, each
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Fund 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:
Fund | Unitary Management Fees (as a % of Net Assets) | |||
ESG Revenue ETF | 0.40 | % | ||
Russell 1000® Dynamic Multifactor ETF | 0.29 | % | ||
Russell 2000® Dynamic Multifactor ETF | 0.39 | % |
Prior to the Reorganization, the Predecessor Funds were managed by OFI Advisors, LLC (“OFI”) and each Predecessor Fund paid OFI an investment advisory fee calculated at the same annualized rates as disclosed above for each respective Fund.
Effective as of the Reorganization, the Adviser has agreed to waive a portion of each Fund’s unitary management fee to the extent necessary to prevent the operating expenses of each Fund (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 Fund’s unitary management fee through at least May 24, 2021.
Further, effective as of the Reorganization, through 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). The Adviser cannot discontinue this waiver prior to its expiration.
For the fiscal year ended June 30, 2019, the Adviser waived fees for each Fund in the following amounts:
Invesco ESG Revenue ETF | $ | 8 | ||
Invesco Russell 1000® Dynamic Multifactor ETF | 267 | |||
Invesco Russell 2000® Dynamic Multifactor ETF | 2 |
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. Prior to the Reorganization, the Board of Trustees for each Predecessor Fund adopted a distribution and service plan pursuant to Rule12b-1 under the 1940 Act. Prior to the Reorganization, the Predecessor Fund paid no distribution fees to OppenheimerFunds Distributor, Inc.
The Trust has entered into service agreements whereby The Bank of New York Mellon (“BNYM”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund. Prior to the Reorganization, BNYM served as administrator, custodian, fund accountant and transfer agent for each Predecessor Fund.
The Adviser has entered into licensing agreements on behalf of each Fund with index provider of each Fund’s respective Underlying Index (each, a “Licensor”).
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’ssub-licensing agreement with the Adviser. Prior to the Reorganization, each Underlying Index name trademark had been licensed to OFI Advisors, LLC for use by the corresponding Predecessor Fund. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.
Note 4—Investments in Affiliates
The Adviser and Invesco Mortgage Capital, Inc. are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. are considered to be affiliated with the Funds. The tables below show certain Funds’ transactions in, and earnings from, investments in affiliate (excluding affiliated money market funds) for the fiscal year ended June 30, 2019.
ESG Revenue ETF
Value June 30, 2018 | Purchases at cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value June 30, 2019 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 21,354 | $ | 14,525 | $ | (9,296 | ) | $ | (642 | ) | $ | (4,049 | ) | $ | 21,892 | $ | 1,337 |
Russell 2000® Dynamic Multifactor ETF
Value June 30, 2018 | Purchases at cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value June 30, 2019 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. | $ | 19,350 | $ | 22,832 | $ | (27,039 | ) | $ | 1,669 | $ | (918 | ) | $ | 15,894 | $ | 1,785 |
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Note 5—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 the 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. |
As of June 30, 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.
Note 6—Securities Lending
For the period ended June 30, 2019, each Fund participated in securities lending. Each Fund loaned 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.
Note 7—Capital
Shares are issued and redeemed by the Funds only in creation unit size aggregations of 50,000 shares. Transactions are permitted on anin-kind basis, with a separate cash payment, which is balancing each component to equate the transaction to the net asset value per share of the Fund on the transaction date.
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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Note 8—Purchase & Sales of Securities
For the year ended June 30, 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:
Fund | Purchases | Sales | ||||||
ESG Revenue ETF | $ | 8,672,792 | $ | 8,937,627 | ||||
Russell 1000® Dynamic Multifactor ETF | 660,185,633 | 659,561,978 | ||||||
Russell 2000® Dynamic Multifactor ETF | 23,126,353 | 23,326,161 |
For the year ended June 30, 2019,in-kind transactions associated with creations and redemptions were as follows:
Fund | Purchases | Sales | ||||||
ESG Revenue ETF | $ | 11,640,515 | $ | 7,085,577 | ||||
Russell 1000® Dynamic Multifactor ETF | 1,153,601,378 | 380,925,209 | ||||||
Russell 2000® Dynamic Multifactor ETF | 9,028,854 | 10,242,838 |
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 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 his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select Invesco Funds. The Deferral Fees payable to the 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—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.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Invesco Exchange-Traded Self-Indexed Fund Trust and Shareholders of Invesco ESG Revenue ETF, Invesco Russell 1000® Dynamic Multifactor ETF and Invesco Russell 2000® Dynamic Multifactor ETF
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 (three of the funds constituting Invesco Exchange-Traded Self-Indexed Fund Trust, hereafter collectively referred to as the “Funds”) as of June 30, 2019, the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the year ended June 30, 2019 (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 June 30, 2019, the results of each of their operations, changes in each of their net assets and each of the financial highlights for the year ended June 30, 2019 in conformity with accounting principles generally accepted in the United States of America.
Fund Name | Predecessor Fund | |
Invesco ESG Revenue ETF | Oppenheimer ESG Revenue ETF | |
Invesco Russell 1000® Dynamic Multifactor ETF | Oppenheimer Russell 1000® Dynamic Multifactor ETF | |
Invesco Russell 2000® Dynamic Multifactor ETF | Oppenheimer Russell 2000® Dynamic Multifactor ETF |
The financial statements of the Predecessor Funds as of and for the year or period ended June 30, 2018 and the financial highlights for each of the periods ended on or prior to June 30, 2018 (not presented herein, other than the statements of changes in net assets and the financial highlights) were audited by other auditors whose report dated August 28, 2018 expressed an unqualified opinion on those financial statements and financial highlights.
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 June 30, 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.
PricewaterhouseCoopers LLP
Chicago, Illinois
August 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 determined the specific year we began serving as auditor.
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Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm
The Audit Committee of the Board of Trustees appointed, and the Board of Trustees ratified and approved, PricewaterhouseCoopers LLP (“PWC”) as the independent registered public accounting firm of the Fund for the fiscal periods ending after May 24, 2019. Prior to the close of business on May 24, 2019, the Predecessor Fund was a separate series of an unaffiliated investment company and its financial statements were audited by a different independent registered public accounting firm (the “Prior Auditor”).
Effective after the close of business on May 24, 2019, the Prior Auditor resigned as the independent registered public accounting firm of the Fund. The Prior Auditor’s report on the financial statements of the Predecessor Fund for the past two fiscal years did not contain an adverse or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the Predecessor Fund’s two most recent fiscal years and through the close of business on May 24, 2019, there were no (1) disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the Prior Auditor’s satisfaction, would have caused it to make reference to that matter in connection with its report; or (2) “reportable events,” as that term is defined in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
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Calculating your ongoing Fund expenses
Example
As a shareholder of a Fund of the Invesco Exchange-Traded Self-Indexed Fund Trust, you incur 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, including acquired fund fees and expenses, if any, litigation expenses and other extraordinary 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 through thesix-month period ended June 30, 2019.
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 the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
Invesco ESG Revenue ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,140.05 | 0.40 | % | 2.12 | |||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.81 | 0.40 | 2.01 | ||||||||||||
Invesco Russell 1000® Dynamic Multifactor ETF | ||||||||||||||||
Actual | 1,000.00 | 1,191.81 | 0.29 | 1.58 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.36 | 0.29 | 1.45 | ||||||||||||
Invesco Russell 2000® Dynamic Multifactor ETF | ||||||||||||||||
Actual | 1,000.00 | 1,162.55 | 0.39 | 2.09 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 |
(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 June 30, 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 181/365. 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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Form1099-DIV, Form1042-S and otheryear-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 June 30, 2019:
Qualified Business Income* | Qualified Dividend Income* | Corporate Dividends-Received Deduction* | |||||||||||||
Invesco ESG Revenue ETF | 0 | % | 100 | % | 100 | % | |||||||||
Invesco Russell 1000® Dynamic Multifactor ETF | 0 | % | 100 | % | 97 | % | |||||||||
Invesco Russell 2000® Dynamic Multifactor ETF | 18 | % | 82 | % | 81 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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A Special Meeting (“Meeting”) of Shareholders of Invesco ESG Revenue ETF was held on April 12, 2019. The Meeting was held for the following purpose:
(1) | Approval of an Agreement and Plan of Reorganization that provides for the reorganization of Oppenheimer ESG Revenue ETF into Invesco ESG Revenue ETF. |
The results of the voting on the above matter was as follows:
Matter | Votes For | Votes Against | Votes Abstain | Broker Non-Votes | ||||||||||
(1) Approval of an Agreement and Plan of Reorganization. | 603,328 | 366 | 695 | 0 |
A Special Meeting (“Meeting”) of Shareholders of Invesco Russell 1000® Dynamic Multifactor ETF was held on April 12, 2019. The Meeting was held for the following purpose:
(1) | Approval of an Agreement and Plan of Reorganization that provides for the reorganization of Oppenheimer Russell 1000® Dynamic Multifactor ETF into Invesco Russell 1000® Dynamic Multifactor ETF. |
The results of the voting on the above matter was as follows:
Matter | Votes For | Votes Against | Votes Abstain | Broker Non-Votes | ||||||||||
(1) Approval of an Agreement and Plan of Reorganization. | 8,613,580 | 577 | 3,035 | 0 |
A Special Meeting (“Meeting”) of Shareholders of Invesco Russell 2000® Dynamic Multifactor ETF was held on April 12, 2019. The Meeting was held for the following purpose:
(1) | Approval of an Agreement and Plan of Reorganization that provides for the reorganization of Oppenheimer Russell 2000® Dynamic Multifactor ETF into Invesco Russell 2000® Dynamic Multifactor ETF. |
The results of the voting on the above matter was as follows:
Matter | Votes For | Votes Against | Votes Abstain | Broker Non-Votes | ||||||||||
(1) Approval of an Agreement and Plan of Reorganization. | 403,268 | 22 | 1,000 | 0 |
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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 June 30, 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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
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 2016 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly, Owner/CEO of 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 2016 | 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 of Giambastiani Group LLC (national security and energy consulting) (2007-Present); Director of The Boeing Company (2009-Present); Trustee of MITRE Corporation (federally-funded research development) (2008-Present); Director of THL Credit, Inc. (2016-Present) (alternative credit investment manager); Trustee of the U.S. Naval Academy Foundation Athletic & Scholarship Program (2010-Present); Advisory Board Member of the Massachusetts Institute of Technology Lincoln Laboratory (federally-funded research development) (2010-Present); Defense Advisory Board Member Lawrence Livermore National Laboratory (2013-present); formerly, Chairman of Monster | 153 | Trustee, certain funds in the Oppenheimer Funds complex (2013-2019); Director of Mercury Defense Systems Inc. (information technology) (2011-2013); Independent Director of QinetiQ Group Plc (defense technology and |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Worldwide, Inc. (career services) (2015- 2016), Director of Monster Worldwide, Inc. (2008-2011); Lead Director (2011-2015); Advisory Board Member of the 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) and Commander, U.S. Joint Forces Command (2002-2005). | security) (2008- 2011); Chairman of Alenia North America, Inc. (military and defense products) (2008-2009); Director of 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) of Zurich Scudder Investments (investment adviser) (and its predecessor firms). | 153 | Trustee (2000-Present) and Chair (2010-2017) of Newberry Library; Trustee, Mather LifeWays (2001-Present); formerly, Board Chair (2008-2015) and Director (2004-2018) of United Educators; Trustee, certain funds in the Oppenheimer Funds complex (2012-2019); Independent Director of the First American Funds (2003-2011); Trustee, Chikaming Open Lands (2014-present); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Investment Committee Chair (1994- 1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (2006-2009) and 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 2016 | 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 | Chairman of the Investment Oversight Committee | Managing Partner, RDG Funds LLC (real estate) (2008-Present); formerly, Managing Director, Citadel LLC (1999-2007). | 246 | Advisory Board Member of Performance Trust Capital Partners (2008- |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
and Trustee | and Trustee since 2016 | Present); Board Director of Beacon Power Services (2019-Present). | ||||||||
Joanne Pace—1958 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700, Downers Grove, IL 60515 | Trustee | Since 2019 | Senior Advisor of SECOR Asset Management, LP (2010-2011); Managing Director and Chief Operating Officer of Morgan Stanley Investment Management (2006-2010); Partner and Chief Operating Officer of FrontPoint Partners, LLC (alternative investments) (2005-2006); Credit Suisse (investment banking), 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); Morgan Stanley, 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). | 153 | Board Director of Horizon Blue Cross Blue Shield of New Jersey (2012-Present); Advisory Board Director of The Alberleen Group LLC (2012-Present); Governing Council Member (2016-Present) and Chair of Education Committee (2017-Present) of Independent Directors Council (IDC); Board Member of 100 Women in Finance (2015-Present); Advisory Council Member of 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 |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Nominating Committee of The Global Chartist Fund, LLC of Oppenheimer Asset Management (2011-2012); Board Director of Managed Funds Association (2008-2010); Board Director of Morgan Stanley Foundation (2007-2010) and Investment Committee Chair (2008-2010). | ||||||||||
Gary R. Wicker—1961 c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2016 | Senior Vice President of Global Finance and Chief Financial Officer at 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 and Trustee since 2016 | 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. (advisory services to the financial sector) (2010-Present); formerly, President and Chief Executive Officer, Stone Pillar Investments, | 246 | Director, Penfield Children’s Center (2004-present); Board Chairman, Gracebridge |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Independent Trustees | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Ltd. (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). | Alliance, Inc. (2015-present). |
* | This is the date the Independent Trustee began serving the Trust. Each Independent Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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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 (as defined below) overseen 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 2015 | 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, Invesco Finance PLC (2011-Present); Director and Secretary (2012-Present), Invesco Services (Bahamas) Private Limited; and Executive Vice President (2014-Present), INVESCO Asset Management (Bermuda) Ltd.; formerly, 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. |
** | Fund Complex includes all open- andclosed-end funds (including all of their portfolios) advised by the Adviser and any affiliated person of the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | 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 2016 | 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 | Assistant Treasurer, 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 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 2016 | 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). | |||
Sheri Morris—1964 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2016 | 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 |
* | 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 | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
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 2015 | 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 2016 | 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). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2016 | Manager, 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, 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 Canada Holdings Inc. (2002-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, 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 at ALPS Holding, Inc. (2009-2017); Mutual Fund Treasurer/Chief Financial Officer at Wasatch Advisors, Inc. (2005-2008); Compliance Officer, U.S. Bancorp Fund Services, LLC (2001-2005). |
* | 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)
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.
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Board Considerations Regarding Approval of Investment Advisory Agreement
Board Considerations Regarding Approval of Investment Advisory Agreement for
Invesco ESG Revenue ETF
Invesco Russell 1000® Dynamic Multifactor ETF
Invesco Russell 2000® Dynamic Multifactor ETF
At a meeting held on December 12, 2018, the Board of Trustees of the Invesco Exchange-Traded Self-Indexed Fund Trust (the “Trust”), including the Independent Trustees, approved the Investment Advisory Agreement (the “Agreement”) between Invesco Capital Management LLC (the “Adviser”) and the Trust for the Invesco ESG Revenue ETF, Invesco Russell 1000® Dynamic Multifactor ETF and Invesco Russell 2000® Dynamic Multifactor ETF (each, a “Fund” and collectively, the “Funds”).
The Trustees reviewed information provided by the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the proposed unitary advisory fee for each Fund and comparisons to amounts paid by other comparable registered investment companies, (iii) the extent to which economies of scale may be realized as each Fund grows, (iv) whether the fee levels reflect any possible economies of scale for the benefit of Fund shareholders, and (v) any benefits to be realized by the Adviser from its relationship with each Fund.
The Trustees noted that each Fund was created in connection with the purchase by Invesco Ltd. of OppenheimerFunds, Inc. and its subsidiaries, from Massachusetts Mutual Life Insurance Company (the “Transaction”) and that each Fund was structured substantially similar to a corresponding Oppenheimer ETF, including the unitary advisory fee, that would be reorganized into the Fund in connection with the Transaction.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions to be performed by the Adviser for each Fund, information describing the Adviser’s current organization and staffing, including operational support that would be provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons who will be responsible for theday-to-day management of the Funds, and they considered the quality of services provided by the Adviser to other exchange-traded funds (“ETFs”). The Trustees also reviewed information related to the Adviser’s portfolio transaction policies and procedures, as well as reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.
The Trustees also considered the services to be provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function for the other ETFs and that was expected to be provided for each Fund.
The Trustees also considered information provided by the Adviser regarding the resources added in recent years to maintain and enhance the services provided to the Funds and all other Invesco ETFs.
Based on their review, the Trustees concluded that the nature, extent and quality of the services to be provided by the Adviser to each Fund under the Agreement were expected to be appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s proposed unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. (“Lipper”) databases on the median net expense ratios of comparable passive ETFs,open-end(non-ETF) index funds andopen-end(non-ETF) actively managed funds. The Trustees also considered fee and expense data on Adviser-identified selected peers. The Trustees noted that the fee data provided by the Adviser included one Adviser-identified selected peer for Invesco Russell 1000® Dynamic Multifactor ETF.
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Board Considerations Regarding Approval of Investment Advisory Agreement(continued)
The Trustees noted that the proposed annual advisory fee to be charged to each Fund was a unitary fee, and that the Adviser has agreed to pay all other expenses of each Fund except for the fee payment under the Agreement, payments under the Fund’s12b-1 plan, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. The Trustees noted each Fund’s proposed unitary advisory fee as compared to the median net expense ratio of its peer groups and select peer group as shown below:
Fund | ETF Peer Group (Number of Peers) | Open-End Index Fund Peer Group (Number of Peers) | Open-End Active Fund Peer Group (Number of Peers) | Select Peer Group (Number of Peers) | ||||
Invesco ESG Revenue ETF | Higher than median (12) | Lower than median (10) | Lower than median (105) | Higher than median (4) | ||||
Invesco Russell 1000® Dynamic Multifactor ETF | Higher than median (36) | Same as median (24) | Lower than median (182) | Higher than median (1) | ||||
Invesco Russell 2000® Dynamic Multifactor ETF | Higher than median (32) | Higher than median (31) | Lower than median (257) | Higher than median (3) |
The Trustees considered each Fund’s proposed unitary advisory fee in light of the administrative, operational and management oversight services to be provided by the Adviser. The Board concluded that the unitary advisory fee to be charged to each Fund is reasonable and appropriate in light of the services expected to be provided by the Adviser.
In conjunction with their review of the unitary advisory fee, the Trustees considered that the Adviser did not provide a profitability analysis for the Adviser in managing the Funds because the Funds had not yet commenced operations. However, the Trustees noted other information the Board received at its April 2018 meeting on the Adviser’s overall profitability from its relationship with other ETFs for which it serves as investment adviser.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale may be realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the management of each Fund would be enjoyed by the Adviser, but that a unitary advisory fee provides a level of certainty in expenses for each Fund. The Trustees considered whether the proposed unitary advisory fee rate for each Fund is reasonable in relation to the proposed services and product strategy of each Fund, and they concluded that the unitary advisory fee was reasonable and appropriate.
Fall-Out Benefits. The Trustees noted that the Adviser had not identified any further benefits that it would derive from its relationships with each Fund, and had noted that it does not have any soft-dollar arrangements. The Trustees considered that an affiliate of the Adviser, Invesco Indexing LLC, would serve as the index provider for each Fund and would be paid a licensing fee by the Adviser.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Agreement for each Fund. No single factor was determinative in the Board’s analysis.
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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 (the “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 onForm N-Q. The Trust’sForms N-Q are available on the Commission’s website atwww.sec.gov. The Trust’sForms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling(800) SEC-0330.
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.
©2019 Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | O-ESG-AR-1 | 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 12(a)(1). No substantive amendments to this Code were made during the reporting period. There were no waivers for the fiscal year ended June 30, 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 (the “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 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 or she does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in his or 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 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 the 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 series of the Registrant with a fiscalyear-end of June 30, 2019 (each a “Fund”) aggregate fees for services rendered to these Funds as shown in the following table. Each Fund is newly organized and was created, respectively, for the purpose of acquiring the assets and liabilities of a corresponding predecessor fund (each, a “Reorganization”). Each Reorganization was consummated after the close of business on May 24, 2019, prior to which each Fund had not yet commenced operations. Accordingly, the information shown in the following table has been provided for the period since each Fund’s commencement of operations. The Audit Committeepre-approved all audit andnon-audit services provided to the Funds.
Fees Billed by PwC for Services Rendered to the Funds for fiscal year end 2019 | ||||
Audit Fees | $ | 36,720 | ||
Audit-Related Fees | $ | 0 | ||
Tax Fees(1) | $ | 21,000 | ||
All Other Fees | $ | 0 | ||
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Total Fees | $ | 57,720 |
(1) | Tax Fees for the fiscal year ended June 30, 2019 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”), each Fund’s investment adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to each Fund (“Affiliates”), aggregate fees forpre-approvednon-audit services rendered to Invesco and Affiliates for the period since each Fund’s commencement of operations 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- Audit Services Rendered to Invesco and Affiliates for fiscal year end 2019 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | ||||
Audit-Related Fees(1) | $ | 690,000 | ||
Tax Fees | $ | 0 | ||
All Other Fees | $ | 0 | ||
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Total Fees | $ | 690,000 |
(1) | Audit-Related fees for the year end 2019 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 orfee-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 underRule 2-01 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 $3,213,000 for the fiscal year ended June 30, 2019 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 $3,924,000 for the fiscal year ended 2019. |
(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 $19 million for the fiscal year ended 2019. The Audit Committee considered this information in evaluating PwC’s independence. |
PwC informed the Audit Committee that it has identified an issue related to its independence under Rule2-01(c)(1)(ii)(A) of RegulationS-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Registrant is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities. For purposes of the Loan Rule, audit clients include the Registrant 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”). PwC informed the Audit Committee it has relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the Invesco Fund Complex.
On June 20, 2016, the SEC Staff issued a“no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al.,No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. On June 18, 2019, the SEC adopted amendments to the Loan Rule (the “Amendments”) addressing many of the issues that led to the issuance of theno-action letter. The Amendments become effective and supersede theno-action letter on October 3, 2019, 90 days after publication in the Federal Register.
In an August 18, 2016 letter, and in subsequent communications, PwC affirmed to the Audit Committee that, as of the date of the letter and the subsequent communications, respectively, PwC is an independent accountant with respect to the Registrant within the meaning of PCAOB Rule 3520. In its letter and in its subsequent communications, PwC also informed the Audit Committee that, after evaluating the facts and circumstances and the applicable independence rules, PwC has concluded that with regard to its compliance with the independence criteria set forth in the rules and regulations of the SEC related to the Loan Rule, it believes that it remains objective and impartial despite matters that may ultimately be determined to be inconsistent with these criteria and therefore it can continue to serve as the Registrant’s registered public accounting firm. PwC has advised the Audit Committee that this conclusion is based in part on the following considerations: (1) the lenders to PwC have no influence over any fund, or other entity within the Invesco Fund Complex, or its Adviser; (2) none of the officers or trustees of the Invesco Fund Complex whose shares are owned by PwC lenders are associated with those lenders; (3) PwC understands that the shares held by PwC lenders are held for the benefit of and on behalf of its policy owners/end investors; (4) investments in funds such as the Invesco Fund Complex funds are passive; (5) the PwC lenders are part of various syndicates of unrelated lenders; (6) there have been no changes to the loans in question since the origination of each respective note; (7) the debts are in good standing and no lender has the right to take action against PwC, as borrower, in connection with the financings; (8) the debt balances with each lender are immaterial to PwC and to each lender; and (9) the PwC audit engagement team has no involvement in PwC’s treasury function and PwC’s treasury function has no oversight of or ability to influence the PwC audit engagement team. In addition, PwC has communicated that the lending relationships appear to be consistent with the lending relationships described in theno-action letter and that they are not aware of other relationships that would be implicated by the Loan Rule. In addition to relying on PwC’s August 18, 2016 letter and subsequent communications regarding its independence, the Registrant intends to rely upon theno-action letter.
If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’sno-action letter or the Amendments, the Registrant may need to take other action in order for the Registrant’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Registrant to issue new shares or have other material adverse effects on the Registrant. The SECno-action relief was initially set to expire 18 months from issuance, but has been extended by the SEC without an expiration date, except that theno-action letter will be withdrawn upon the effectiveness of the Amendments.
During the reporting period, PwC advised the Registrant’s Audit Committee of the following matter for consideration under the SEC auditor independence rules. PwC advised the Audit Committee that two PwC Managers, a PwC Senior Manager and a PwC Partner each held financial interests either directly or, in the case of the PwC Partner, indirectly through her spouse’s equivalent brokerage account, in investment companies within the Invesco Fund Complex that were inconsistent with the requirements of Rule 2-01(c)(1) of Regulation S-X. PwC noted, among other things, that during the time of its audit, 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 each individual provided 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 PwC Partner, the individual did not provide any audit services 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 they considered in reaching their 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.
On May 24, 2019, certain investment advisor subsidiaries of Invesco Ltd. assumed management responsibility from Oppenheimer Funds, Inc. (“OFI”) for 83open-end mutual funds and 20 exchange-traded funds (collectively, the “Oppenheimer Funds”). Assumption of management responsibility for the Oppenheimer Funds was accomplished through the reorganization of each Oppenheimer Fund into a new Invesco shell fund (collectively, the “New Invesco Funds”) that did not havepre-existing assets (together, the “Reorganizations”). The Reorganizations were part of the acquisition by Invesco Ltd. (together with its subsidiaries, “Invesco”) of the asset management business of OFI (including the Oppenheimer Funds) from Massachusetts Mutual Life Insurance Company (“MassMutual”), which was also consummated on May 24, 2019 (the “Acquisition”). Subsequent to the Acquisition, MassMutual became a significant shareholder of Invesco, and the Invesco Ltd. board of directors expanded by one director with the addition of a director selected by MassMutual.
Prior to the consummation of the Acquisition and the Reorganizations on May 24, 2019, PwC completed an independence assessment to evaluate the services and relationships with OFI and its affiliates, which became affiliates of Invesco upon the closing of the Acquisition. The assessment identified the following relationship and services that are inconsistent with the auditor independence rules under Rule2-01 of RegulationS-X (“Rule2-01”) if provided to an affiliate of an audit client. A retired PwC partner who receives a benefit from PwC that is not fully funded served as a member of Audit Committee of the Boards of Trustees of certain Oppenheimer Funds prior to the Acquisition (the“Pre-Reorganization Relationship”). Additionally, PwC provided certainnon-audit services, including expert legal services to one Oppenheimer Fund, custody of client assets in connection with payroll services, anon-audit service performed pursuant to a success-based fee,non-audit services in which PwC acted as an advocate on behalf of a MassMutual foreign affiliate and certain employee activities undertaken in connection with the provision ofnon-audit services for MassMutual and certain MassMutual foreign affiliates (collectively, the“Pre-Reorganization Services”).
PwC and the Audit Committees of the New Invesco Funds each considered the impact that thePre-Reorganization Relationship and Services have on PwC’s independence with respect to the New Invesco Funds. On the basis of the nature of the relationship and services performed, and in particular the mitigating factors described below, PwC concluded that a reasonable investor, possessing knowledge of all the relevant facts and circumstances regarding thePre-Reorganization Relationship and Services, would conclude that thePre-Reorganization Relationship and Services do not impair PwC’s ability to exhibit the requisite objectivity and impartiality to report on the financial statements of the New Invesco Funds for the years ending May 31, 2019 – April 30, 2020 (“PwC’s Conclusion”).
The Audit Committees of the Boards of Trustees of the New Invesco Funds, based upon PwC’s Conclusion and the concurrence of Invesco, considered the relevant facts and circumstances, including the mitigating factors described below, and after careful consideration, concluded that PwC is capable of exercising objective and impartial judgment in connection with its audits of the financial statements of the New Invesco Funds that the respective Boards of Trustees oversee.
Mitigating factors that PwC and the Audit Committees considered in reaching their respective conclusions included, among others, the following factors:
• | none of thePre-Reorganization Relationship or Services created a mutuality of interest between PwC and the New Invesco Funds; |
• | PwC will not act in a management or employee capacity for the New Invesco Funds or their affiliates during any portion of PwC’s professional engagement period; |
• | other than the expert legal services,Pre-Reorganization Services that have been provided to OFI, MassMutual and their affiliates do not have any impact on the financial statements of the New Invesco Funds; |
• | as it relates to the expert legal services, while the service provided by PwC related to litigation involving one Oppenheimer Fund, the impact of the litigation on the Oppenheimer Fund’s financial statements was based upon OFI’s decision, and OFI management represented that the PwC service was not considered a significant component of its decision; |
• | while certain employees of OFI who were involved in the financial reporting process of the Oppenheimer Funds will be employed by Invesco subsequent to the Reorganizations, existing officers of other Invesco Funds will serve as Principal Executive Officer and Principal Financial Officer or equivalent roles for the New Invesco Funds, and are ultimately responsible for the accuracy of all financial statement assertions for the entirety of the financial reporting periods for the New Invesco Funds; |
• | thePre-Reorganization Services giving rise to the lack of independence were provided to, or entered into with, OFI, MassMutual and their affiliates at a time when PwC had no independence restriction with respect to these entities; |
• | with the exception of the expert legal service provided to one Oppenheimer Fund, none of thePre-Reorganization Services affected the operations or financial reporting of the New Invesco Funds; |
• | thePre-Reorganization Services provided by PwC to OFI, MassMutual and their affiliates were performed by persons who were not, and will not be, part of the audit engagement team for the New Invesco Funds; and |
• | the fees associated with thePre-Reorganization Services were not material to MassMutual, Invesco or PwC. |
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) | Registrant’s Independent Public Accountant |
(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 Exchange-Traded Self-Indexed Fund Trust
By: | /s/ Daniel E. Draper | |
Name: | Daniel E. Draper | |
Title: | President | |
Date: | September 6, 2019 |
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: | September 6, 2019 |
By: | /s/ Kelli Gallegos | |
Name: | Kelli Gallegos | |
Title: | Treasurer | |
Date: | September 6, 2019 |