Invesco High Yield Equity Dividend Achievers ETF (PEY US) – Portfolio Construction Methodology

The underlying NASDAQ US Dividend Achievers 50 Index offers a high-yield subset of the Dividend Achievers universe. Eligibility requires membership in the NASDAQ US Broad Dividend Achievers Index (≥10 consecutive years of dividend increases), minimum USD 1 billion market cap at the annual evaluation, and exclusion of REITs and limited partnerships. Each March, securities are ranked by trailing-12-month dividend yield; the top 50 are selected subject to a limit of 12 names per sector. The index employs a modified dividend-yield weighting with quarterly rebalancing (March, June, September, December): sectors are capped at 25% and single stocks at 4%, with excess weight redistributed proportionally across uncapped sectors and constituents. Ongoing maintenance removes constituents that cut or suspend dividends per the methodology’s monthly checks.

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