Invesco Alerian Galaxy Crypto Economy ETF

Typically, security classifications used in calculating allocation tables are as of the last trading day of the previous month.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

Investments focused in a particular sector, such as information technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The performance of an investment concentrated in issuers of a certain region or country is expected to be closely tied to conditions within that region and to be more volatile than more geographically diversified investments.

The Fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.

Many significant aspects of the U.S. federal income tax treatment of investments in cryptocurrencies are uncertain and an investment in cryptocurrencies, even indirectly, may produce income that is not treated as qualifying income for purposes of the income test applicable to regulated investment companies, such as the Fund. To the extent a Fund invests in any cryptocurrency-linked assets that generate non-qualifying income, it intends to do so through the Subsidiary.

In seeking to track the Underlying Index, the Fund may obtain investment exposure to cryptocurrencies indirectly through private vehicles that are traded over-the-counter market, such as the Grayscale Bitcoin Investment Trust (“GBTC”). An investment in these vehicles exposes the Fund to all risks related to digital currencies and those specific to private vehicles and private funds generally, which may include, but are not limited to, liquidity risk, lack of a secondary market to trade securities, management risk, concentration risk and valuation risk. Private funds are generally not registered under the 1940 Act, the Securities Act of 1933, or any state securities laws, therefore investments in such vehicles will not benefit from the protections and restrictions of such laws. To the extent such vehicles are traded, they may trade at a premium or discount to their net asset values. The Fund will indirectly pay a proportional share of the expenses of the private vehicles in which it invests, in addition to the fees and expenses the Fund already will pay to the Adviser. As a result, shareholders will absorb duplicate levels of fees with respect to the Fund’s investments in such vehicles.

Certain companies in the Underlying Index may be engaged in other lines of business unrelated to blockchain and cryptocurrency and these lines of business could adversely affect their operating results. Operating results of these companies may fluctuate due these additional risks and events in the other lines of business. Also, a company’s ability to engage in new activities may expose it to business risks with which it has less experience than the traditional risks associated with its businesses. Despite a company’s possible success in activities linked to its use of blockchain, there can be no assurance that the other lines of business in which these companies are engaged will not have an adverse effect on a company’s business or financial condition.

Exchange-traded notes (ETNs) are subject to credit risk of the issuer, and the value of the ETN may drop due to a downgrade in the issuer’s credit rating, despite the underlying market benchmark or strategy remaining unchanged.

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

The Fund’s use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.

The Fund faces numerous market trading risks, including the potential lack of an active market for the Shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Fund. Any of these factors may lead to the Shares trading at a premium or discount to the Fund’s NAV.

Companies engaged in the development, enablement and acquisition of blockchain technologies are subject to a number of risks. Blockchain technology is new and many of its uses may be untested. There is no assurance that widespread adoption will occur. The extent to which companies held by the Fund utilize blockchain technology may vary.

As blockchain technology is new, there is a risk that companies developing applications of this technology may be subject to additional risks including, but not limited to, intellectual property claims and legal action.  Furthermore, blockchain technology may be subject to future law and regulation that may adversely impact adoption.

Companies transacting on the blockchain are required to manage a user’s account (or “wallet”) which is accessed via cryptographic keys.  Mismanagement, theft, or loss of the keys can adversely affect the companies operations on the blockchain.

Blockchain technology relies on the internet, the disruption of which may adversely affect companies involved with the technology or even the blockchain itself."

While the Fund will not invest directly in cryptocurrencies, the value of a Fund’s investments in cryptocurrency-linked assets (including private trusts and ETPs) is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The price of a digital currency could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in a digital currency network or a change in user preference to competing cryptocurrencies.

Cryptocurrencies trade on exchanges, which are largely unregulated and, therefore, are more exposed to fraud and failure than established, regulated exchanges for securities, derivatives and other currencies.

Currently, there is relatively limited use of cryptocurrency in the retail and commercial marketplace, which contributes to price volatility. 

Because the Subsidiary is not registered under the Investment Company Act of 1940, as amended (1940 Act), the Fund, as the sole investor in the Subsidiary, will not have the protections offered to investors in U.S. registered investment companies.

The MSCI All Country World Index (ACWI) is designed to represent performance of large- and mid-cap stocks across 23 developed and 27 emerging markets.

Alerian^®, Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index, and CRPYTO are service marks of Alerian and have been licensed for use by the Adviser. Galaxy^® is a trademark of Galaxy that has been licensed for use by the Index Provider in connection with the Underlying Index and sub-licensed to the Adviser. The Fund is not issued, sponsored, endorsed, sold or promoted by Alerian, Galaxy or any of their respective affiliates. Neither Alerian nor Galaxy makes any representation or warranty, express or implied, to the purchasers or owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance. Alerian's only relationship to the Fund is the licensing to the Adviser of its trademarks and the Underlying Index, which is determined, composed and calculated by Alerian without regard to the Adviser or the Fund. Galaxy's only relationship with the Fund is the licensing of its trademarks to Alerian, which have been sub-licensed to the Adviser. Neither Alerian nor Galaxy is responsible for or has participated in the determination of the timing of, prices at, or quantities of the Fund's Shares issued. Neither Alerian nor Galaxy has any obligation or liability in connection with the issuance, administration, marketing or trading of the Fund.