Discover the potential benefits of investing in Invesco’s fixed income ETFs, such as income generation and portfolio diversification.
Delivering a range of low-cost government, investment-grade credit and ESG exposures to enhance your fixed income portfolios.
Providing a wide offering of innovative fixed income exposures, across sectors, regions and strategies.
From combining global resources with local expertise, we aim to provide you with the best potential outcomes.
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.
Low cost exposure to high quality government bonds
High quality government bonds could help investors diversify their portfolio or provide a cushion in times of uncertainty. Additionally, with a variety of maturities available, investors can choose how much interest rate risk they wish to take with those focusing on very short-dated maturities providing the best options for capital preservation while longer maturities can be used by those expecting rates to fall. Discover our range here.
Using maturity-targeted ETFs to manage curve exposure
Income investors are often looking to achive a yield-related objective, for example delivering a target yield relative to cash or inflation, or wanting to manage their credit, currency, duration. Here, we look at how maturity-targeted ETFs can help investors manage exposure to the yield curve.
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.
Introducing our innovative income ETFs
Some of the more innovative asset classes can offer potentially higher yields as well as possible diversification benefits. If you’re looking at income opportunities outside of government bonds, we provide a range of innovative income ETFs offering alternative exposures to traditional credit.
ETFs for higher-yielding alternatives to traditional fixed income exposures
Fixed income yields have risen substantially since central banks began acting to combat inflation. Where to invest now depends on your outlook and risk appetite, but if you’re considering corporate bond markets, here are some alternative, potentially higher yielding or higher quality opportunities, that you can access with ETFs.
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.
Our core range of 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.
Let us know your preferences to receive insights and ideas on the themes, strategies and products of most interest to you.
Investing in fixed income
Whether you’re looking for income, diversification, capital preservation or total returns, we have the strategies, the scale and the flexibility needed to match your objectives as markets evolve.
Monthly fixed income update
Read our latest thoughts on how fixed income performed in January and what we think you should be looking out for in the near term.
Global fixed income strategy monthly report
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
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.
Invesco AT1 Capital Bond UCITS ETF, Invesco US High Yield Fallen Angels UCITS ETF, Invesco Variable Rate Preferred Shares UCITS ETF, Invesco US Municipal Bond UCITS ETF, Invesco Euro Corporate Hybrid Bond UCITS ETF: 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. 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. Changes in interest rates will result in fluctuations in the value of the fund.
Invesco AT1 Capital Bond UCITS ETF: This fund invests in contingent convertible bonds, a type of corporate debt security that may be converted into equity or forced to suffer a write down of principal upon the occurrence of a pre-determined event. If this occurs, the Fund could suffer losses. Other notable risks of these bonds include liquidity and default risk.
Invesco AT1 Capital Bond UCITS ETF, Invesco US High Yield Fallen Angels UCITS ETF, Invesco US Municipal Bond UCITS ETF and Invesco Euro Corporate Hybrid Bond UCITS ETF: 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.
Invesco AT1 Capital Bond UCITS ETF, Invesco US High Yield Fallen Angels UCITS ETF, Invesco US Municipal Bond UCITS ETF, Invesco Variable Rate Preferred Shares UCITS ETF: 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.
Invesco Variable Rate Preferred Shares UCITS ETF and Invesco Euro Corporate Hybrid Bond UCITS ETF: The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund.
Invesco US High Yield Fallen Angels UCITS ETF: This fund may hold a significant amount of debt instruments which are of lower credit quality. This may result in large fluctuations of the value of the ETF as well as impacting its liquidity under certain circumstances. 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.
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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.
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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.
