Invesco High Yield Equity Dividend Achievers™ ETF

Invesco High Yield Equity Dividend Achievers ETF (PEY) is an index fund. It holds the 50 highest-yielding stocks from a Nasdaq list of companies that have raised their dividends for at least 10 years in a row. It pays dividends monthly, and its trailing yield was 4.31% as of October 27, 2026. The trade-off is cost: its 0.68% expense ratio is well above the 0.39% average for similar dividend funds.

• Over the year to Oct 27, 2026, PEY returned +19.4%, 5th of 8 among similar funds.
• Its 5-year annualized return was +8.3% and its 10-year +9.3%.
• In the 2020 COVID crash it fell 41.1% and regained its old high 9.7 months after the low.
• Its worst full calendar year was 2008 (-38.1%); its best was 2016 (+31.4%).
• The deepest fall in its price history was 72.8% (Dec 27, 2006 to Mar 9, 2009), recovered by Mar 18, 2014.

As of Jul 31, 2026, the fund held 50 securities; the ten largest made up 29.27% of assets. It also reported 12.65% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $13.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.95%, +2.82%, +4.60%.

The fund tracks the Nasdaq US Dividend Achievers 50 Index, which is built by Nasdaq. The index starts from a wider list called the Nasdaq US Broad Dividend Achievers Index. To qualify, a company must have raised its regular annual cash dividend in each of at least its last 10 consecutive years. It must also have a market capitalization (the total market value of its shares) of at least $1 billion. From that group, the index picks the 50 companies with the highest "modified" dividend yield, which is Nasdaq's version of annual dividends measured against the share price.

Invesco uses "full replication." This means the fund generally owns every stock in the index, in the same proportions as the index. As of June 30, 2026, the companies in the index ranged from $1.3 billion to $330 billion in market value, so smaller firms sit next to large ones. As of July 31, 2026, the largest holdings were Robert Half (3.9%), Insperity (3.9%), Flowers Foods (3.4%) and Perrigo (3.4%). The top ten made up about 29% of assets. Portfolio turnover was 56%.

The fund does not try to beat its index. It generally buys or sells a stock only when the index adds or removes it, even if that stock is doing poorly. Because stocks are picked by yield, a falling share price can raise a stock's yield and help keep it in the index.

• PEY charges 0.68% a year, versus an average of 0.39% for the similar funds below (7th of 8, cheapest first).
• Of that, 0.4% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $69 in the first year and $847 over 10 years (assuming a 5% annual return).

PEY pays monthly from 50 high-yielding stocks with long records of dividend increases, and its trailing yield was 4.31% as of October 27, 2026.

PEY could add a steady monthly payment to the income side of a portfolio. Its history also shows how hard high-yield stocks can fall. In the 2008 financial crisis it dropped 71.3% and took about 56 months to recover. Its deepest drop, 72.8% from December 2006 to March 2009, took about 60 months to win back. In the 2020 COVID crash it fell 41.1% and recovered in about 10 months. In 2022 it fell 15.9% at one point but ended the year up 2.49%. Anyone who had to sell shares in a slump like 2008 would have locked in deep losses, and companies under stress can cut their dividends. Costs are high: in the SEC's standard $10,000 example, they come to $69 after one year and $847 after 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.