| Summary Prospectus |
February 28, 2023 |
PBTP
Invesco PureBetaSM 0-5 Yr US TIPS ETF
Cboe BZX Exchange, Inc.
Before you
invest, you may wish to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s
Prospectus, reports to shareholders, and other information about the Fund online at www.invesco.com/etfprospectus. You can also get this information at no cost
by calling Invesco Distributors, Inc. at (800) 983-0903 or by sending an e-mail request to etfinfo@invesco.com. The Fund’s Prospectus and Statement of
Additional Information, both dated February 28, 2023 (as each may be amended or supplemented), are incorporated by reference into this Summary
Prospectus.
Investment Objective
The
Invesco PureBetaSM 0-5 Yr US TIPS ETF (the “Fund”)
seeks to track the investment results (before fees and expenses) of the ICE BofA 0-5 Year US
Inflation-Linked Treasury Index (the “Underlying Index”).
Fund Fees and Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund (“Shares”). You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the table and example below.
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
| Management Fees |
0.07% |
| | |
| Other Expenses |
None |
| | |
| Total Annual Fund Operating Expenses |
0.07 |
| | |
Example.
This example is intended to help you compare the cost of investing in the Fund with the cost of investing
in other funds.
The example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses remain the same. This
example does not include brokerage commissions that investors may pay to buy and sell Shares. Although your
actual costs may be higher or lower, your costs, based on these assumptions, would be:
| 1 Year |
3 Years |
5 Years |
10 Years |
| $7 |
$23 |
$40 |
$90 |
Portfolio Turnover.
The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate will cause the Fund to incur
additional transaction costs and may result in higher taxes when Shares are held in a taxable account.
These costs, which are not reflected in Total Annual Fund Operating Expenses or in the example, may affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 27% of the average value of its portfolio.
Principal Investment Strategies
The Fund generally will invest at least 80% of its total assets in the components that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, ICE
Data Indices, LLC (the “Index Provider” or “ICE Data”) compiles, maintains and calculates the Underlying Index, which is designed to measure the performance of the shorter maturity subset of the U.S. Treasury
Inflation-Protected Securities (“TIPS”)
market, represented by TIPS with a remaining maturity of at least one month and less than five years.
TIPS are
U.S. dollar-denominated, U.S. government debt securities that are publicly offered for sale in the United States. TIPS are “inflation-linked,” meaning that their principal and interest payments are tied to inflation (as measured by the Consumer Price Index). TIPS
are issued by the U.S. Treasury, and their payments are supported by the full faith and credit of the
United States.
To qualify for inclusion in the Underlying Index, securities must have: (i) at least one month but less than five years remaining term to final maturity; (ii) at least 18 months to maturity when
issued; (iii) a minimum amount outstanding of $1 billion; and (iv) meet certain additional inclusion criteria
detailed below. Original issue zero coupon bonds may be included in the Underlying Index, and the amounts
outstanding of qualifying coupon securities are not reduced by any portions that have been stripped.
Underlying Index constituents are market capitalization weighted.
As of December 31, 2022, the Underlying Index was comprised of 21 constituents with market capitalizations ranging from $21 billion to $56 billion.
The Fund employs a “full replication” methodology in seeking to track the Underlying Index, meaning that the Fund generally invests in all of the securities comprising its Underlying Index
in proportion to their weightings in the Underlying Index.
For the avoidance of doubt, “PureBeta” refers to the market-capitalization weighted methodology of the Fund’s Underlying Index. It does not refer in any way to the purity or absence of
errors or flaws of the market-capitalization weighted methodology of the Underlying Index or of the Fund in
seeking to track the investment results of the Underlying Index.
Concentration Policy. The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of
issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a
concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of investing in the Fund.
The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.
Market Risk.
Securities in the Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in the Underlying Index. Additionally, natural
or environmental disasters, widespread disease or other public health issues, war, military conflict, acts
of terrorism, economic crisis or other events could result in increased premiums or discounts to the
Fund’s net asset value (“NAV”).
1 Invesco PureBetaSM 0-5 Yr US TIPS
ETF
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P-PBTP-SUMPRO-1
Index Risk. Unlike many investment companies, the Fund does not utilize an investing strategy that seeks returns in excess of the Underlying Index. Therefore, the Fund 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. Additionally, the Fund rebalances its portfolio in accordance
with the Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to the Fund’s rebalance schedule.
U.S. Government Obligations Risk. U.S. Government securities include securities that are issued or guaranteed by the United States Treasury, by various agencies of the U.S. Government, or
by various instrumentalities which have been established or sponsored by the U.S. Government. U.S. Treasury
securities are backed by the “full faith and credit” of the United States, which may be negatively affected by an actual or threatened failure of the U.S. Government to pay its obligations. Securities issued or guaranteed by federal agencies and U.S.
Government-sponsored instrumentalities may or may not be backed by the full faith and credit of the United
States. In the case of those U.S. Government securities not backed by the full faith and credit of the United States, the investor must look principally to the agency or instrumentality issuing or guaranteeing the security for ultimate repayment, and may not be
able to assert a claim against the United States itself in the event that the agency or instrumentality
does not meet its commitment. The U.S. Government, its agencies and instrumentalities do not guarantee the market value of their securities, and consequently, the value of such securities may fluctuate.
Inflation-Linked Security Risk. The value of inflation-linked securities generally will fluctuate in response to changes in real interest rates,
generally decreasing when real interest rates rise and increasing when real interest rates fall. Real
interest rates represent nominal (or stated) interest rates reduced by the expected impact of inflation. In addition, interest payments on inflation-indexed securities will generally vary up or down along with the rate of inflation.
Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations
in the value of a fixed-income security resulting from changes in the general level of interest rates. When
the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. Fixed-income securities with longer maturities
typically are more sensitive to changes in interest rates, making them more volatile than securities with
shorter maturities. Credit risk refers to the possibility that the issuer of a security will be unable
and/or unwilling to make timely interest payments and/or repay the principal on its debt. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. There is a possibility that the credit rating
of a fixed-income security may be downgraded after purchase, which may occur quickly and without advance
warning following sudden market downturns or unexpected developments involving an issuer, and which may
adversely affect the liquidity and value of the security.
Short-Term and Intermediate-Term Bond Risk. The amount of time until a fixed-income security matures can lead to various risks, including changes in interest rates over the life of a bond.
Short- and intermediate-term fixed-income securities generally provide lower returns than longer-term fixed-income securities. The average maturity of a fund's investments will affect the volatility of the fund's share
price.
Changing Fixed-Income Market Conditions Risk. Increases in the federal funds and equivalent foreign interest rates or other changes to monetary policy or regulatory actions may expose fixed-income markets to heightened volatility and reduced liquidity for certain
fixed-income investments, particularly those with longer maturities. It is difficult to predict the impact of
interest rate changes on various markets. In addition, decreases in fixed-income dealer market-making
capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed-income markets. As a result, the value of the Fund's investments and share price may decline.
Changes in central bank policies could also result in higher than normal redemptions by APs (as defined herein), which could potentially increase the Fund’s portfolio turnover rate and
transaction costs.
Industry Concentration Risk. In following its methodology, the 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 the Underlying
Index concentrates in the securities of issuers in a particular industry or industry group, the Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, the
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, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in
a particular industry; competition for resources, adverse labor relations, political or world events;
obsolescence of technologies; and increased competition or new product introductions that may affect the
profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
Call Risk. If interest rates fall, it is possible that issuers of callable securities with high interest coupons will “call” (or prepay) their bonds before their maturity date. If an
issuer exercises such a call during a period of declining interest rates, the Fund may have to replace such called security with a lower yielding security. If that were to happen, the Fund’s net investment income could
fall.
Liquidity Risk. Liquidity risk exists when a particular investment is difficult to purchase or sell. If the Fund invests in illiquid
securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because
the Fund may be unable to sell the illiquid securities at an advantageous time or price.
Issuer-Specific Changes Risk. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value
of the market as a whole.
Non-Correlation Risk. The Fund's return may not match the return of the Underlying Index for a number of reasons. For example, the Fund
incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling
securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of the Underlying Index. In addition, the performance of the Fund and the Underlying Index may vary due to asset valuation differences and
differences between the Fund's portfolio and the Underlying Index resulting from legal restrictions, costs
or liquidity constraints.
Authorized Participant Concentration
Risk. Only authorized participants (“APs”) may engage in creation or redemption transactions
directly with the Fund. The Fund has a limited number of institutions that may act as APs and such APs have
no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the Shares. This risk may be heightened to the extent that securities held by the Fund are
traded outside a collateralized settlement system. In that case, APs may be required to post collateral on
certain trades on an agency basis (i.e., on behalf of other market participants), which only a limited
number of APs may be able to do. In addition, to the extent that APs exit the business or are unable to proceed with creation and/or redemption orders with respect to the 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, and Shares may be more likely to trade at a premium or discount to the Fund's NAV and to face trading halts and/or delisting. Investments in non-U.S. securities, which may have lower trading volumes or could experience extended market closures or
trading halts, may increase the risk that APs may not be able to effectively create or redeem Creation
Units or the risk that the Shares may be halted and/or delisted.
2 Invesco PureBetaSM 0-5 Yr US TIPS
ETF
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Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for the Shares, losses from trading in secondary markets, and
disruption in the creation/redemption process of the Fund. In stressed market conditions, the market for Shares may become less liquid in response to deteriorating liquidity in the markets for the Fund’s portfolio holdings,
which may cause a variance in the market price of Shares and their underlying NAV. In addition, an exchange or market may issue trading halts on specific securities or financial instruments. As a result, the ability to trade certain
securities or financial instruments may be restricted, which may disrupt the Fund’s creation/redemption process, potentially affect the price at which Shares trade in the secondary market, and/or result in the Fund being unable to
trade certain securities or financial instruments at all. In these circumstances, the Fund may be unable to
rebalance its portfolio, may be unable to accurately price its investments and/or may incur substantial
trading losses. Any of these factors may lead to the Shares trading at a premium or discount to the Fund's NAV.
Operational Risk. The Fund is exposed to operational risks arising from a number of factors, including, but not limited to, human error, processing and communication errors, errors of the
Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and
technology or systems failures. The Fund and its investment adviser, Invesco Capital Management LLC (the
“Adviser”), seek to reduce these operational risks through controls and procedures. However, these measures do not address every possible risk and may be inadequate to address these risks.
Shares May Trade at Prices Different than NAV. Shares trade on a stock exchange at prices at, above or below the Fund’s most recent NAV. The Fund’s NAV is calculated at the end of
each business day and fluctuates with changes in the market value of the Fund’s holdings. The trading price of the Shares fluctuates continuously throughout trading hours on the exchange, based on both the relative market supply
of, and demand for, the Shares and the underlying value of the Fund’s portfolio holdings. As a result,
the trading prices of the Shares may deviate from the Fund’s NAV. ANY OF THESE FACTORS, AMONG OTHERS,
MAY LEAD TO THE SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Performance
The bar chart below shows how the Fund has performed. The table below the bar chart shows the Fund’s average
annual total returns (before and after taxes). The bar chart and table provide an indication of the risks
of investing in the Fund by showing how the Fund’s total returns have varied from year to year and by
showing how the Fund’s average annual total returns compared with a broad measure of market performance. Although the information
shown in the bar chart and the table gives you some idea of the risks involved in investing in the Fund, the Fund’s past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future.
Updated performance information is available online at www.invesco.com/ETFs.
Annual Total Returns—Calendar Years
| |
Period Ended |
Returns |
| Best Quarter |
June 30, 2020 |
2.54% |
| Worst Quarter |
September 30, 2022 |
-2.66% |
Average Annual Total Returns (for the periods ended December 31, 2022)
| |
Inception Date |
1 Year |
5 Years |
Since
Inception |
| Return Before Taxes |
9/22/2017 |
-3.00% |
2.47% |
2.36% |
| Return After Taxes on Distributions |
|
-5.00 |
1.31 |
1.21 |
| Return After Taxes on Distributions and Sale of Fund Shares |
|
-1.76 |
1.41 |
1.33 |
| | ||||
| ICE BofA 0-5 Year US Inflation-Linked Treasury Index (reflects no deduction for fees, expenses or taxes) |
|
-2.84 |
2.58 |
2.47 |
| | ||||
After-tax returns in the above table are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who
hold Shares through tax-advantaged arrangements, such as 401(k) plans or individual retirement
accounts.
Management of the Fund
Investment Adviser. Invesco
Capital Management LLC (the “Adviser”).
Portfolio Managers
The following individuals are responsible jointly and primarily for the day-to-day management of the Fund’s portfolio:
| Name |
Title with Adviser/Trust |
Date Began
Managing the Fund |
| Peter Hubbard |
Head of Equities and Director of Portfolio Management of the
Adviser; Vice President of the Trust |
September 2017 |
| | ||
| Richard Ose |
Senior Portfolio Manager of the
Adviser |
September 2017 |
| | ||
| Tom Boksa |
Portfolio Manager of the Adviser |
February 2022 |
| | ||
| Gary Jones |
Portfolio Manager of the Adviser |
September 2017 |
Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with APs and only in large blocks of 10,000 Shares (each block of Shares is called a “Creation Unit”) or multiples thereof
(“Creation Unit Aggregations”), generally in exchange for the deposit or delivery of a basket of securities. However, the Fund also reserves the right to permit or require Creation Units to be issued in exchange for cash. Except when aggregated in
Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares may only be bought and sold in the secondary market (i.e., on a national securities exchange) through a broker or dealer at a market price. Because the Shares trade at
market prices rather than NAV, Shares may trade at a price greater than NAV (at a premium), at NAV, or less
than NAV (at a discount). An investor may incur costs attributable to the difference between the highest
price a buyer is willing to pay to purchase Shares (bid) and the lowest price a seller is willing to accept for Shares (ask) when buying or selling shares in the secondary market (the “bid-ask spread”).
Recent information, including information on the Fund’s NAV, market price, premiums and discounts, and bid-ask spreads, is available online at www.invesco.com/ETFs.
Tax Information
The Fund’s distributions generally are taxed as ordinary income, capital gains or some combination of both, unless
you are investing through a tax-advantaged arrangement, such as a 401(k) plan or an individual retirement
account, in which case your distributions may be taxed as ordinary income when withdrawn from such account.
3 Invesco PureBetaSM 0-5 Yr US TIPS
ETF
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Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund’s
distributor or its related companies may pay the intermediary for certain Fund-related activities,
including those that are designed to make the intermediary more knowledgeable about exchange-traded
products, such as the Fund, as well
as for marketing, education or other initiatives related to the sale or promotion of Shares. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and your salesperson or
financial adviser to recommend the Fund over another investment. Ask your salesperson or financial adviser
or visit your financial intermediary’s website for more information.
4 Invesco PureBetaSM 0-5 Yr US TIPS
ETF
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