Invesco MSCI Emerging Markets Equal Country Weight ETF

C000197633 Fund Overview

Invesco MSCI Emerging Markets Equal Country Weight ETF is a US ETF managed by Invesco Exchange-Traded Fund Trust II, categorised as China Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Invesco Exchange-Traded Fund Trust II
• Category: China Blend / Core Equity
• Assets under management: $12.40M
• SEC CIK: 0001378872
• SEC series ID: S000060817
• Share class ID: C000197633

C000197633 Investment Objective and Strategy

Invesco MSCI Emerging Markets Equal Country Weight ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Invesco Exchange-Traded Fund Trust II.

Investment objective

The investment objective of the PowerShares MSCI Emerging Markets Equal Country Weight Portfolio (the “Fund”) is to correspond, before fees and expenses, to the price and yield performance of the MSCI Emerging Markets Equal Country Weighted Index (the “Underlying Index”).

Principal investment strategy

The Fund invests primarily in equity securities to meet its investment objective of corresponding to the Underlying Index as closely as possible, before fees and expenses. The Underlying Index is based on the universe of constituents of the MSCI Emerging Markets Index. The Underlying Index provides equal weighted exposure to all of the countries included in the MSCI Emerging Markets Index while providing capitalization weighted exposure to the securities within each country. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of certain markets deemed to be emerging markets. As of February 28, 2018, the MSCI Emerging Markets Index consisted of the following 24 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates with capitalizations ranging from $460 million to $490 billion.

Both Indices are denominated in U.S. dollars. In general, the equal-weighting employed by the Underlying Index provides equal representation of the countries included in the Underlying Index at the Underlying Indexs rebalance interval(s), thereby providing broader exposure to those countries than typically may be found in the Underlying Indexs market capitalization weighted counterparts, while the capitalization weighting of the securities within each country provides for greater diversification. The Fund uses a passive management strategy, known as representative sampling, to track the performance of the Underlying Index. Representative sampling refers to an indexing strategy that generally involves investing in a representative sample of securities, including shares of other investment companies and common stock, or financial instruments, primarily consisting of American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), that has an investment profile similar to the Underlying Index and some, but not all, of the component securities of the Underlying Index.

Under normal circumstances, the Fund will invest at least 90% of its total assets in the component included in the Underlying Index. The Adviser expects that, over time, the correlation between the Funds performance, before fees and expenses, and that of the Underlying Index will be 95% or better. A figure of 100% would indicate perfect correlation. The Adviser monitors the Funds tracking of the Underlying Index and seeks to maintain an appropriate correlation. The Adviser rebalances the Funds portfolio at the same rebalance interval(s) utilized by the Underlying Index. As long as the Fund invests at least 90% of its total assets in securities included in the Underlying Index, the Fund may hold up to 10% of its assets in securities not included in or representative of the Underlying Index, futures contracts, options on futures contracts, options, and swaps related to the Underlying Index, as well as cash and cash equivalents.

On a day-to-day basis, the Fund may also hold repurchase agreements, U.S. Government securities or cash equivalents to collateralize its derivatives positions. In an effort to make sure the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund may also seek to obtain exposure to the securities in which it primarily invests through a variety of investment vehicles, including closed-end funds, exchange-traded funds (ETFs) and mutual or other investment funds. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund. 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 sector only to the extent that the Underlying Index reflects a concentration in that industry or sector.

The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or sector. As of February 28, 2018, the Predecessor Fund had significant exposure to the Financials Sector, as that sector is defined by the Global Industry Classification Standard, a classification methodology developed by MSCI, Inc. and Standard & Poors Financial Services LLC. Also, as of February 28, 2018, the Underlying Index components and thus the Predecessor Funds assets, were concentrated in the Banks Industry, a separate industry comprising the Financials Sector.

C000197633 Costs and Fees

C000197633 costs about $70 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.70%
• Gross expense ratio: 0.71%
• Portfolio turnover: 51%
• Brokerage commissions: 6.25 bps of average net assets (SEC N-CEN)

C000197633 Cashflows

Over the 12 months to 2020-01, Invesco MSCI Emerging Markets Equal Country Weight ETF had net inflows of $27, from monthly SEC N-PORT filings.

C000197633 Debt Constituents

No individual debt constituents are reported in Invesco MSCI Emerging Markets Equal Country Weight ETF's latest SEC N-PORT filing.

C000197633 Prospectus and SEC Filings

Official Invesco MSCI Emerging Markets Equal Country Weight ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-03-12
• Prospectus (485BPOS) — filed 2018-04-25
• Prospectus supplement (497) — filed 2018-04-25
• Portfolio holdings (N-PORT) — filed 2020-03-31
• Portfolio holdings (N-PORT) — filed 2019-12-30
• Annual census (N-CEN) — filed 2020-01-14
• Annual census (N-CEN) — filed 2019-01-11

Related Funds

Other China Blend / Core Equity funds tracked on ABC INVEST:

• Fiera Capital Emerging Markets Fund (RIMIX)
• 2ndVote Society Defended ETF (EGIS)
• Infusive® Compounding Global Equities ETF (JOYY)
• Clough China Fund (CHNAX)
• Franklin FTSE Hong Kong ETF (FLHK)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.