Invesco launches four active fixed income ETFs

Invesco has rolled out four new actively managed fixed income ETFs in the US.

Listed on Cboe BZX Exchange, the fully transparent funds provide exposure to short-duration bonds, high yield bonds, floating rate collateralized loan obligations (CLOs), and municipal debt.

The Invesco Short Duration Bond ETF (ISDB US) invests in Treasuries, corporate bonds, agency bonds, and mortgage- and asset-backed securities while maintaining a dollar-weighted portfolio duration between one and three years. Up to 30% of the portfolio may be allocated to bonds with sub-investment-grade credit ratings, up to 25% to bonds from issuers domiciled outside of the US, and up to 20% to bonds denominated in currencies other than the US dollar.

The fund has been seeded with $10 million and comes with an expense ratio of 0.35%.

The Invesco High Yield Select ETF (HIYS US) invests in corporate and convertible bonds with credit ratings that fall in the higher end of the sub-investment-grade universe (securities with ratings between B- and BB+). Up to 10% of the portfolio’s assets may be allocated to securities rated below B-.

The fund has been seeded with $10m and comes with an expense ratio of 0.48%.

The Invesco AAA CLO Floating Rate Note ETF (ICLO US) primarily invests in floating-rate CLOs with AAA credit ratings although up to 15% of the portfolio may be allocated to CLOs with ratings between AAA and AA. Up to 20% of the portfolio may be allocated to CLOs denominated in currencies other than the US dollar.

The fund has been seeded with $30m and comes with an expense ratio of 0.26%.

The Invesco Municipal Strategic Income ETF (IMSI US) invests across fixed and variable-rate municipal bonds while targeting a dollar-weighted portfolio duration below 7.5 years. Between 50% and 65% of the portfolio’s assets will be allocated to securities with credit ratings of BBB or lower.

The fund has been seeded with $30m and comes with an expense ratio of 0.39%.