Fixed income ETFs

Fixed income investing with ETFs

Discover the potential benefits of investing in Invesco’s fixed income ETFs, such as income generation and portfolio diversification.

Our suite of fixed income ETFs

We’ve launched a range of BulletShares UCITS ETFs

BulletShares are a suite of fixed-term ETFs that enable investors to build customised portfolios with tailored maturity profiles to meet their investment goals. They are designed to combine a final maturity like an individual bond with the diversification and trading benefits of an ETF.

Investing across various BulletShares UCITS ETF maturities can enable investors build a cost-effective, diversified laddered portfolio to manage interest rate risk and cash flows. Our BulletShares UCITS ETFs offer targeted exposure to USD and EUR denominated investment grade corporate bonds, with a choice of maturities ranging from 2026 to 2030.

Investment risks - please click here to view more information.
For complete information on risks, refer to the legal documents. Value fluctuation, Credit risk, Interest rates, Environmental, social and governance, Concentration, Maturity Year Risk, Declining Yield Risk, Reinvestment Risk, Early Termination Risk, Securities Lending.

Backed by the world's strongest and largest economies, developed market government bonds are among the safest and most liquid asset classes. Government bonds tend to perform well in turbulent times and can help diversify risk in multi-asset portfolios. Often viewed as a possible buffer for volatile equity and other riskier markets, government bonds serve as a core allocation for investors.

Our wide range of developed market, low-cost government bond ETFs provide a choice of broad exposure and maturity ranges across US treasuries, UK gilts, and European government bonds.

Investors wanting higher yields than they could get from government or investment grade corporate bonds would normally have to invest in bonds from issuers with lower credit ratings. Less financially secure issuers must pay higher coupons to compensate bond investors for the additional risk they’d be taking, i.e., the risk of the issuer being unable to pay the coupons or the principal. While this trade-off is agreeable for some investors, others are unable to accept this higher default risk.

Fortunately, more innovative solutions are now available. While they are not without risk, our innovative income ETFs can offer investors the potential for higher yields without having to necessarily accept lower credit quality at the issuer level. These securities are often from investment-grade issuers, with the higher coupons driven by their subordination and other features, not the company’s credit rating.  

Investor appetite for Environmental, Social and Governance (ESG) solutions across all asset classes has grown rapidly in recent years. Within fixed income, most of the focus for ESG investors is in the corporate bond space. In addition to providing exposure to companies operating in a variety of sectors, corporate bond ETFs offer choices such as targeting different maturities, currencies or credit quality. 

We’ve expanded our range of Corporate Bond ESG ETFs with our Invesco Global Corporate Bond ESG UCITS ETF, which provides multi-currency global investment grade credit exposure. All our corporate bond ESG ETFs aim to avoid certain sectors by applying business involvement screens, while also tilting the index in favour of companies with stronger ESG criteria. They provide investors with low-cost core elements for constructing diversified ESG portfolios. In addition, for EUR-denominated investment grade credit we also offer two actively managed solutions (full curve and under-five year) which use an intelligent multi-factor approach to offset some of the biases that ESG introduces to corporate bond indices.

But ESG is not limited to corporates. We also offer an actively managed ETF that aims to provide the performance of the European government bond market by investing in a portfolio of government and government-related bonds that also factors certain ESG criteria into the portfolio construction and maximises exposure to Green Bonds, subject to exposure and liquidity considerations.

  • Investment risks

    Please click here to view more information. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested. Any investment decision should take into account all the characteristics of the funds as described in the legal documents. For sustainability related aspects, please refer to  https://www.invescomanagementcompany.ie/dub-mancoApplies to the Invesco Global Corporate Bond ESG UCITS ETF: Value fluctuation, Credit risk, Interest rates, Environmental, social and governance, Securities lending, Concentration, Currency hedging.

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Invesco Fixed income

Fixed Income
Fixed income solutions

Find out more about the benefits fixed income investments with Invesco and learn how they can be helpful with portfolio diversification and enhanced income.
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Transcript

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Fixed Income FAQs

Fixed income ETFs give investors access to bonds and other fixed income securities, such as US Treasuries, corporate debt, and municipal bonds. Some potential benefits of fixed income ETFs include liquidity, portfolio transparency, and diversification.

Since bonds are generally not as volatile as other assets, like stocks, they can serve as a ballast for an overall portfolio. In particular, ETFs that invest in high quality bonds, like US Treasuries and investment grade credit, may help provide portfolio stability. When market uncertainty leads to disruption in equity markets, fixed income ETFs may provide diversification benefits. Within fixed income ETFs, strategies with lower duration may help preserve capital when interest rates rise.

As their name suggests, many investors use fixed income ETFs to generate income. Some of the bond asset classes that fixed income ETFs hold are traditionally used to seek overall portfolio stability as when market uncertainty leads to disruption in the equity markets, bonds may provide some diversification. Investors can also use specialized fixed income ETFs to help diversify their sources of income as well as help tailor their exposure to credit and duration risk. 

  • Investment risks

    For complete information on risks, refer to the legal documents. Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested. 

    Applies to Invesco Global Corporate Bond ESG UCITS ETF only. 

    Credit risk: The creditworthiness of the debt the Fund is exposed to may weaken and result in fluctuations in the value of the Fund. There is no guarantee the issuers of debt will repay the interest and capital on the redemption date. The risk is higher when the Fund is exposed to high yield debt securities. 

    Interest rates: Changes in interest rates will result in fluctuations in the value of the fund. 

    Environmental, social and governance: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. 

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. 

    Concentration: The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified. 

    Currency hedging: Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class.

    Important information

    This marketing communication is exclusively for use by professional investors in Continental Europe as defined below, Qualified Clients/Sophisticated Investors in Israel and Professional Clients in Ireland and the UK. It is not intended for and should not be distributed to the public.

    For the distribution of this communication, Continental Europe is defined as Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Germany, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Spain, Switzerland.

    By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

    Telephone calls may be recorded.

    For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German), and the financial reports, available from http://www.invesco.eu. A summary of investor rights is available in English from http://www.invescomanagementcompany.ie. The management company may terminate marketing arrangements.

    UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

    For the full objectives and investment policy please consult the current prospectus.

    Product that is difficult to understand. The CNMV in Spain considers that, in general, Invesco Capital Bond AT1 UCITS ETF is not appropriate for retail investors.

    RO3515025