Invesco Active U.S. Real Estate ETF (PSR US) – Portfolio Construction MethodologyThe investment philosophy steering the actively managed Invesco Active U.S. Real Estate ETF focuses on U.S. equity real estate, primarily listed REITs and real estate operating companies in USD, seeking total return through active selection across property types. Research integrates issuer-level fundamentals (net operating income trajectory, balance-sheet leverage, lease duration, development pipeline) with asset-level drivers ...

Core Insights - The Innovator Power Buffer Step-Up Strategy ETF (PSTP US) employs a rules-based, options-driven investment process aimed at providing risk-managed exposure to the SPDR S&P 500 ETF Trust [1] - The strategy targets a defined downside buffer while accepting an upside cap, with call and put strikes and maturities set to achieve the intended outcome profile over an approximately one-year term [1] - A monthly evaluation framework allows for opportunistic "step-ups," enabling the fund to roll into a new one-year options basket when preset thresholds are met, thereby refreshing buffer and cap parameters [1] Portfolio Construction - The portfolio is constructed using exchange-listed FLEX options, with collateral maintained in cash or short-dated U.S. Treasuries [1] - Exposure is sized to align the options portfolio with the underlying equity beta target, ensuring effective risk management [1] - Risk management is further supported through OCC-guaranteed settlement, listing venue liquidity, and disciplined reset and roll mechanics [1]

Core Insights - The Pacer Trendpilot European Index ETF (PTEU) utilizes a rules-based approach to allocate between eurozone equities and U.S. Treasury bills based on trend signals [1] Group 1: Portfolio Construction Methodology - The underlying index for PTEU is the FTSE Eurozone Index, which is a market-cap-weighted index of large- and mid-cap stocks from developed eurozone markets, reviewed semi-annually for investability [1] - The Trendpilot overlay assesses the FTSE Eurozone Total Return Index against its 200-day simple moving average daily [1] - If the total return index exceeds the 200-day average for five consecutive days, the allocation shifts to 100% FTSE Eurozone; conversely, if it falls below for five consecutive days, the allocation changes to a 50% FTSE Eurozone and 50% 3-Month U.S. Treasury bill mix [1] - A further condition triggers a move to 100% T-bills if the 200-day average itself drops below its level from five days prior after being in a 50/50 state [1] - Allocation changes are implemented on the second business day following a signal [1]

Pacer Trendpilot US Large Cap ETF (PTLC US) – Portfolio Construction MethodologyThe underlying Pacer Trendpilot US Large Cap Index delivers a rules-based allocation between the S&P 500 Total Return Index and 3-Month U.S. Treasury bills using moving-average trend signals. When the S&P 500 TR closes above its 200-day simple moving average (SMA) for five consecutive business days, exposure shifts to 100% S&P 500; when it closes below the 200-day SMA for five consecutive business days, exposure shifts to 50% S& ...

Pacer Trendpilot 100 ETF (PTNQ US) – Portfolio Construction MethodologyThe underlying Pacer NASDAQ-100 Trendpilot Index delivers a rules-based toggle among three exposures: 100% NASDAQ-100 Total Return, 50% NASDAQ-100/50% 3-Month U.S. Treasury bills, or 100% 3-Month U.S. Treasury bills. Signals use the NASDAQ-100 TR versus its 200-day simple moving average (SMA): five consecutive closes above the 200-day SMA set 100% equity; five consecutive closes below set 50/50; a “trend” signal (200-day SMA today below ...

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]

Invesco California AMT-Free Municipal Bond ETF (PWZ US) – Portfolio Construction MethodologyThe underlying ICE BofA California Long-Term Core Plus Municipal Securities Index delivers market-value-weighted exposure to investment grade, tax-exempt municipal bonds publicly issued by California or any U.S. territory and their political subdivisions, with ≥15 years remaining to final maturity and interest exempt from federal AMT. Eligible issues are USD-denominated and capitalization-weighted by current amount o ...

Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF US) – Portfolio Construction MethodologyThe underlying RAFI Fundamental Select Developed ex-US 1000 Index delivers a fundamentally weighted portfolio of developed-market equities excluding the U.S., selecting the top 1,000 companies by composite “fundamental size.” Fundamental size combines adjusted sales, adjusted cash flow, dividends plus net buybacks, and book value plus intangibles; each metric is scaled, averaged, and free-float adjusted to form rank ...

Invesco FTSE RAFI Emerging Markets ETF (PXH US) – Portfolio Construction MethodologyThe underlying RAFI Fundamental Select Emerging Markets 350 Index targets a contrarian, fundamentals-weighted portfolio of large and liquid emerging-markets equities. The universe spans standard EM listings (including ADR/GDR lines) that meet free-float and trading-liquidity thresholds. Securities are ranked on composite “economic size” using four accounting measures—book value, cash flow, sales, and dividends—each scaled an ...

Core Insights - The Invesco National AMT-Free Municipal Bond ETF (PZA US) targets USD-denominated, investment-grade, tax-exempt municipal bonds in the U.S. public market that are exempt from federal AMT and have at least 15 years remaining to maturity [1] Group 1: Portfolio Construction Methodology - The underlying index is the ICE BofA National Long-Term Core Plus Municipal Securities Index, which includes bonds rated at investment-grade by Moody's, S&P, and Fitch [1] - The index excludes taxable munis and other non-tax-exempt structures, focusing on state, territory, and local-government obligors [1] - Constituents of the index are market-value weighted based on the current amount outstanding, with monthly implementation of index changes [1] - New issues must settle by or before the following month-end to be eligible for inclusion in the index [1] - The methodology emphasizes long-maturity bonds, concentrating duration while allowing for broad sector and issuer representation across the national AMT-free municipal market [1]