Investment Objective
The
Invesco Global Clean Energy ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the WilderHill New Energy Global Innovation Index (the “Underlying Index”).
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)
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Total Annual Fund Operating Expenses |
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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:
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 64% of the average value of its portfolio.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in the securities that comprise the Underlying Index, as well as American depositary receipts (“ADRs”) and global
depositary receipts (“GDRs”) that represent securities in the Underlying
Index.
Strictly in accordance with its guidelines and mandated procedures, WilderHill New Energy Finance LLC
(the “Index Provider”) compiles and maintains the Underlying Index, which is comprised of securities of
companies that are located in developed and
emerging markets throughout the world and that are engaged in the business of the advancement of cleaner
energy and conservation.
The Underlying Index is comprised primarily of companies whose technologies focus on the generation and
use of cleaner energy, conservation and efficiency, and the advancement of renewable energy in general, as
determined by the Index Provider. The Underlying Index includes companies in wind, solar, biofuels, hydro, wave, tidal, geothermal and other relevant renewable energy businesses and those involved in energy conversion, storage, conservation, efficiency,
materials relating to those activities, carbon and greenhouse gas reduction, pollution control, emerging
hydrogen and fuel cells.
As of December 31, 2023, the Underlying Index was comprised of 108 securities with market capitalizations ranging from $104.2 million to $32.1 billion based in the following countries:
Austria, Canada, Chile, China, Denmark, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands,
New Zealand, Norway, South Korea, Spain, Sweden, Switzerland, Taiwan, the United Kingdom
(“UK”), and the United States.
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 the Underlying Index in proportion to their weightings in the Underlying Index.
Concentration Policy. The Fund will concentrate its investments (i.e., invest 25% or more of the value of its total 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.
As of October 31, 2023, the Fund had significant exposure to the clean energy-related industry, the utilities
sector and the industrials sector. The Fund’s portfolio holdings, and the extent to which it
concentrates its investments, are likely to change over time.
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 conflicts, acts of terrorism, economic
crises or other events could result in increased premiums or discounts to the Fund’s net asset value (“NAV”).
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