Strategy. The Fund generally will invest at least 80% of its total assets in the securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, FTSE Russell (the Index Provider) compiles and maintains the Underlying Index, which is an index of U.S. equity securities designed to reflect a dynamic combination of factor investing strategies that, in the view of the Index Provider, have historically outperformed other factors during various parts of the economic cycle. The Underlying Indexs universe of investable stocks is taken from the Russell 2000 Index (the Parent Index), which measures the performance of approximately 2,000 small capitalization companies in the United States. A factor is a stock characteristic that is associated with a … Show more… The Fund generally will invest at least 80% of its total assets in the securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, FTSE Russell (the Index Provider) compiles and maintains the Underlying Index, which is an index of U.S. equity securities designed to reflect a dynamic combination of factor investing strategies that, in the view of the Index Provider, have historically outperformed other factors during various parts of the economic cycle. The Underlying Indexs universe of investable stocks is taken from the Russell 2000 Index (the Parent Index), which measures the performance of approximately 2,000 small capitalization companies in the United States. A factor is a stock characteristic that is associated with a securitys risk and return profile (e.g., high quality, high momentum or low volatility). The Underlying Indexs rules-based framework seeks to identify equity securities that tend to exhibit various investment factors to a greater extent than the overall market, depending on the overall economic environment. The Underlying Index emphasizes investments that exhibit the following factors: low volatility, momentum, quality, size and value. At any given time, depending on the current stage of the economic cycle of the overall market, the Underlying Index will target different subsets (that is, two or three) of those five factors (referred to as factor configurations). The Underlying Index is designed to utilize factor configurations that, in the view of the Index Provider, have historically outperformed other factors in certain stages of the economic cycle. The specific factor configurations used by the Underlying Index will change depending on which of the following four stages of the economic cycle currently is prevalent: recovery, expansion, slowdown and contraction. These four stages are defined as follows: Recovery : when growth is below trend but accelerating. ? Expansion : when growth is above trend and accelerating. ? Slowdown : when growth is above trend but decelerating. ? Contraction : when growth is below trend and decelerating. Invesco Indexing LLC (Invesco Indexing) identifies which stage of the economic cycle it currently believes the market to be in by evaluating leading economic and market sentiment indicators (such as manufacturing business surveys, labor market conditions, monetary conditions and consumer sentiment surveys). Each month, Invesco Indexing informs the Index Provider on the current stage of the economic cycle, and the Index Provider uses that information to determine the appropriate factor configuration for the Underlying Index during that month. Each of the four stages is correlated to a specific, predetermined factor configuration. To determine which securities within the Parent Index are eligible for inclusion in the Underlying Index in a given factor configuration, each constituent in the Parent Index is assigned a multi-factor score based on the extent to which the security exhibits a factor relative to the other constituents in the Parent Index. The multi-factor score is the product of the securitys individual factor scores, each of which is calculated based on certain aspects of the issuer, as set forth below. ? Value . A companys value factor score is based on an equally-weighted composite of cash flow yield, earnings yield, and sales to price ratio, calculated based on the companys total market capitalization and information reported in the companys most recent annual financial statement as of the last business day of the prior month. ? Momentum . A companys momentum factor score is based on historical total return over the 11 months ending on the third Friday of the prior month. ? Quality . A companys quality factor score is based on a composite of three measures of profitability (return on assets, change in asset turnover and accruals) and a single measure of leverage, calculated as the ratio of operating cash flow to total debt based on information reported in the companys most recent annual financial statement. ? Low Volatility . A companys volatility factor score is based on the standard deviation of weekly total returns to a companys stock price over the trailing five years ending on the last business day of the prior month. ? Size. A companys size factor score is based on total market capitalization as of the last business day of the prior month. An initial weight for each security is determined from the product of the securitys multi-factor score and its weight in the Parent Index. The Underlying Indexs methodology will exclude securities from the Underlying Index if their relevant factor characteristics fall below certain relative thresholds, as set forth in the methodology rules of the Underlying Index, or if their adjusted weights fall below a certain de minimis amount. Finally, a maximum security weight limit is applied to ensure no security weight exceeds a fixed level. The Underlying Index is sponsored by the Index Provider, which is unaffiliated with the Fund, Invesco Indexing or Invesco Capital Management LLC, the Funds investment adviser (the Adviser). However, since Invesco Indexing provides the Index Provider with monthly data relating to the stage of the economic cycle, Invesco Indexing may also be deemed a creator and sponsor of the Underlying Index. Invesco Indexing is affiliated with the Adviser and Invesco Distributors, Inc., the Funds distributor (the Distributor). As of October 31, 2025, the Underlying Index was comprised of 1432 constituents with market capitalizations ranging from $43.6 million to $32.5 billion. 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 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. As of August 31, 2025, the Fund had significant exposure to the financials sector. The Funds portfolio holdings, and the extent to which it concentrates its investments, are likely to change over time. Show less