Invesco Emerging Markets Debt Value ETF

C000201202 Fund Overview

Invesco Emerging Markets Debt Value ETF is a US ETF managed by Invesco Exchange-Traded Self-Indexed Fund Trust, categorised as Bond. 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 Self-Indexed Fund Trust
• Category: Bond
• Assets under management: $39.99M
• SEC CIK: 0001657201
• SEC series ID: S000062194
• Share class ID: C000201202

C000201202 Investment Objective and Strategy

Invesco Emerging Markets Debt Value ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Invesco Exchange-Traded Self-Indexed Fund Trust.

Investment objective

The Invesco Emerging Markets Debt Value ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Invesco Emerging Markets Debt Value Index (the “Underlying Index”).

Principal investment strategy

The Fund generally will invest at least 80% of its total assets in securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, Invesco Indexing LLC (the Index Provider) compiles and maintains the Underlying Index, which is designed to provide exposure to higher value, emerging markets debt securities. Higher value bonds are characterized as those with higher yields that may provide greater returns in certain markets. In addition, the Underlying Index seeks to incorporate securities with the highest quality scores (within the eligible universe of emerging market debt securities) as determined by the Index Provider using its methodology described below. The Index Provider is affiliated with Invesco Capital Management LLC, the Funds investment adviser (the Adviser), and Invesco Distributors, Inc., the Funds distributor (the Distributor).

In selecting components for inclusion in the Underlying Index, the Index Provider begins with an investment universe of all U.S. dollar-denominated bonds issued by sovereign governments, and agencies thereof, of countries that the Index Provider considers to be emerging market countries (as of June 15, 2018, the following countries were classified as emerging markets by the Index Provider: Brazil, Chile, China, Colombia, Czech Republic, Greece, Hungary, India, Indonesia, Israel, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey, the United Arab Emirates and Vietnam). To be eligible for inclusion in the Underlying Index, bonds must (i) be rated higher than B- (or equivalent) by S&P Global Ratings, a division of S&P Global Inc. (S&P), Fitch Ratings Inc.

(Fitch) or Moodys Investors Service, Inc. (Moodys) credit rating agencies; (ii) have at least $500 million outstanding, with only the largest five bonds from each issuer eligible; (iii) have at least two years, and no more than ten years, until final maturity; and (iv) make coupon payments. Qualifying securities include: fixed rate, bullet bonds, sinking funds, amortizing, puttable, extendable, callable, and step-up bonds with schedules known at issuance. Securities issued in accordance with Rule 144A (Rule 144A securities) or Regulation S (Reg S securities) under the Securities Act of 1933, as amended (Securities Act), and bonds registered with the Securities and Exchange Commission (SEC) are all eligible for inclusion in the Underlying Index. The Index Provider assigns a quality adjusted value score (QAV Score) to each eligible bond, which is calculated based on a combination of value and quality factors or characteristics.

With respect to value, a value score (Value Score) is assigned to each eligible bond based on the bonds option adjusted spread (OAS). Specifically, the Value Score for each bond is calculated as its percentile ranked OAS within its bond type (agency or sovereign), region and credit rating category. With respect to credit category, each rating agencys rating is converted into a numerical value and a bonds credit factor score is calculated as an equally-weighted average of the numerical scores of each agency that has rated the bond. The bond is then assigned to one of six credit rating categories, as established by the Index Provider. Bonds are also separately ranked by OAS solely within their bond type category. If fewer than three bonds are available within a bond type, region or credit rating, then the Value Score for all bonds in the grouping is replaced with the percentile rank based on credit rating only.

The Value Scores are then standardized. The Index Provider also calculates a quality score (Quality Score) for each eligible bond, which is calculated based on such bonds maturity and credit rating. With respect to maturity, each bond is scored based on the number years remaining to maturity, with bonds having fewer years to maturity receiving higher scores. With respect to credit factor score, each rating agencys rating is converted into a numerical value and a bonds credit factor score is calculated as an equally-weighted average of the numerical scores of each agency that has rated the bond. The maturity and credit factors for each bond are standardized by bond type (agency or sovereign), and the Quality Score for each bond is computed as a weighted-average combination of these two factors, with weights of 75% and 25% for maturity and credit rating, respectively.

Once a Value Score and Quality Score are assigned to eligible bonds, the QAV Score is calculated as a weighted-average combination of the two scores, with 90% and 10% weights applied to the Value Score and Quality Score, respectively. All eligible securities are ranked by the QAV Score. Initially, bonds with QAV Scores in the top 40% of eligible securities are selected for inclusion in the Underlying Index. At each monthly Underlying Index rebalance, any eligible security with a QAV Score in the top 30% of eligible securities is added to the Underlying Index, and current Underlying Index components with a QAV Score in the bottom 40% of eligible securities are removed. The Underlying Index will typically include between 100-300 securities, which are modified market-value weighted. The Fund does not purchase all of the securities in the Underlying Index; instead, the Fund utilizes a sampling methodology to seek to achieve its investment objective.

The Fund is non-diversified and therefore is not required to meet certain diversification requirements under the Investment Company Act of 1940, as amended (the 1940 Act). 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.

C000201202 Costs and Fees

C000201202 costs about $29 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.29%
• Gross expense ratio: 0.29%
• Portfolio turnover: 96%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000201202 Cashflows

Over the 12 months to 2019-11, Invesco Emerging Markets Debt Value ETF had net inflows of $0, from monthly SEC N-PORT filings.

C000201202 Debt Constituents

No individual debt constituents are reported in Invesco Emerging Markets Debt Value ETF's latest SEC N-PORT filing.

C000201202 Prospectus and SEC Filings

Official Invesco Emerging Markets Debt Value ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-01-10
• Prospectus (485BPOS) — filed 2019-01-11
• Prospectus supplement (497) — filed 2018-08-08
• Portfolio holdings (N-PORT) — filed 2020-01-29
• Annual census (N-CEN) — filed 2019-11-14
• Annual census (N-CEN) — filed 2018-11-14

Related Funds

Other Bond funds tracked on ABC INVEST:

• Great-West T. Rowe Price Equity Income Fund (MXTQX)
• Absolute Return Currency Fund (JCUAX)
• ICON Flexible Bond Fund (IOBCX)
• Tributary Growth Opportunities Fund (FOGRX)
• Oakhurst Fixed Income Fund (FWFIX)

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.