Invesco Energy Exploration & Production ETF (PXE US) - Portfolio Construction Methodology

Core Insights - The Invesco Energy Exploration & Production ETF (PXE US) targets U.S. energy companies involved in the exploration, extraction, and processing of crude oil and natural gas, including selected refineries and midstream operators [1] Portfolio Construction Methodology - The underlying index, Dynamic Energy Exploration & Production Intellidex, is derived from the 2,000 largest, most liquid U.S. stocks listed on NYSE, NYSE American, and NASDAQ [1] - The index uses the FactSet Revere Hierarchy to define an industry group focused on companies significantly engaged in exploration and production activities [1] - Eligible stocks are ranked quarterly by a quantitative model that aggregates around 47 factors into five groups: Price Momentum, Earnings Momentum, Quality, Management Action, and Value [1] - The index selects 30 constituents, comprising eight larger-cap names (top market-cap quintile) and 22 smaller-cap names (remaining quintiles) [1] - Larger stocks collectively receive 40% of the index weight, while smaller stocks receive 60%, with equal weighting within each size tier [1] - The index is rebalanced and reconstituted quarterly in February, May, August, and November [1]