INVESCO EXCHANGE-TRADED FUND TRUST II
SUPPLEMENT DATED MARCH 28, 2024 TO THE PROSPECTUSES
DATED DECEMBER 20, 2023 OF:
Invesco Fundamental Investment Grade Corporate Bond ETF (PFIG)
(the “Fund”)
Effective March 31, 2024, the following replaces the second paragraph of the section titled “Principal Investment Strategies” in the Fund’s Summary Prospectus and in the section titled “Summary Information—Principal Investment Strategies” in the Fund’s Statutory Prospectus:
Strictly in accordance with its guidelines and mandated procedures, Research Affiliates, LLC (“RA” or the “Index Provider”) or its agent compiles and calculates the Underlying Index, which is designed to measure the performance of U.S. dollar-denominated, investment grade corporate bonds
that are SEC-registered securities, Section 3(a)(2) securities under the Securities Act of 1933 (“Securities Act”), or Rule 144A securities under the Securities Act and whose issuers are public companies
domiciled in the United States. The Underlying Index selects and weights securities based on the Fundamental
Index® approach developed by RA that uses four fundamental factors of company size: book
value of assets, gross sales, gross dividends and cash flow. Only non-convertible, non-exchangeable,
non-zero, fixed coupon investment grade corporate bonds qualify for inclusion in the Underlying Index.
Effective March 31, 2024, the following replaces the first paragraph on page 4 of
the Statutory Prospectus in the section titled “Additional Information About the Fund’s Strategies and Risks—RAFI® Bonds U.S. Investment Grade 1-10 Index”:
The Underlying Index is comprised of U.S. dollar-denominated investment grade corporate
bonds which are SEC-registered securities, Section 3(a)(2) securities, or Rule 144A securities
under the Securities Act and whose issuers are public companies domiciled in the United States.
Only non-convertible, non-exchangeable, non-zero, fixed coupon investment grade corporate bonds qualify
for inclusion in the Underlying Index. Bonds of foreign agencies, governments or supra-nationals
or municipal bonds, as well as those issuers that are not domiciled in the United States,
are excluded from the Underlying Index. The Underlying Index is rebalanced after the close of business
on the last trading day of every month and weights its constituents annually on the last trading day in
March according to a composite RA weight that is calculated for each eligible company. Composite RA weights
are comprised of individual RA weights calculated for each company using each of the following
four fundamental corporate accounting variables: book value of assets, gross sales, gross
dividends and cash flow. Each company receives a composite RA weight equal to the ratio of its sales
(or cash flow, dividends or book value of assets) to the aggregate sales (or cash flow, dividends
or book value of assets) across all companies in the sample universe. If a company does not pay any
dividends, the composite calculation does not give it a zero weight on that metric, but rather computes
its weight as an equally-weighted average of the remaining three metrics. Companies that receive a
negative composite RA weight are not eligible for inclusion in the Underlying Index. Each issue must
have a minimum par value amount of $500 million outstanding and must be rated BBB/Baa or higher by both Moody’s Investors Service, Inc. (“Moody’s”) and S&P Global Ratings (“S&P”). Split-rated bonds are ineligible if either agency’s rating is below BBB/Baa. Bonds that are downgraded below BBB/Baa during the month are removed from the Underlying Index at month-end. In the case that a newly exchanged
bond is not yet rated by Moody’s or S&P, or updated by the data vendor, the new bond will carry the rating of the old bond for a period of one monthly rebalance cycle. For example, if a bond is exchanged
at the beginning of January, and it is not yet rated, it will carry the rating of the old
bond for the end of January rebalance. If it is still missing the rating at the end of February rebalance,
the bond will be removed. All issues in the Underlying Index must have a minimum of two-year call protection
when added to the Underlying Index. Poison puts and make-whole provisions, which allow
the creditor or borrower, respectively, the right to require re-payment of the amount owed before the debt’s maturity, are eligible for inclusion in the Underlying Index.
Please Retain This Supplement For Future Reference.