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.
This webpage contains information that is for discussion purposes only, and is intended only for professional investors in Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Germany, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Spain, Switzerland and the UK and Qualified Clients/Sophisticated clients in Israel. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.
It is not intended for and should not be distributed to, or relied upon, by the public.
Product that is difficult to understand. The CNMV in Spain considers that, in general, the Invesco Capital Bond AT1 UCITS ETF is not appropriate for retail investors.
Data as at April 2022 unless otherwise stated.
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For more information on our funds and the relevant risks, please refer to the share class-specific Key Information Documents/Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.ie. The management company may terminate marketing arrangements.
This webpage is marketing material and 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.
This webpage should not be considered financial advice. Persons interested in acquiring the product should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.
Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein.
For details on fees and other charges, please consult the prospectus, the KIID and the supplement of each product. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
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.
The offering of ETFs has not been and will not be notified to the Belgian Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten/Autorité des Services et Marchés Financiers) nor has this document been, nor will it be, approved by the Financial Services and Markets Authority.
The ETFs may be offered in Belgium only to a maximum of 149 investors or to investors investing a minimum of €250,000 or to professional or institutional investors, in reliance on Article 5 of the Law of August 3, 2012. This document may be distributed in Belgium only to such investors for their personal use and exclusively for the purposes of this offering of ETFs. Accordingly, this document may not be used for any other purpose nor passed on to any other investor in Belgium. German investors may obtain the offering documents free of charge in paper or electronic form from the issuer or from the German information agent (Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany).
No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution.
No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.
This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder.
The publication of the supplement in Italy does not imply any judgment by CONSOB on an investment in a product. The list of products listed in Italy, and the offering documents for and the supplement of each product are available: (i) at etf.invesco.com (along with the audited annual report and the unaudited half-year reports); and (ii) on the website of the Italian Stock Exchange borsaitaliana.it.
This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.
The representative for the sub-funds of Invesco Markets III plc in Switzerland is Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, and the paying agent is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. The offering documents, articles of incorporation and annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The ETFs are domiciled in Ireland.
The representative and paying agent for the sub-funds of Invesco Markets plc and Invesco Markets II plc in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. The offering documents, articles of incorporation and annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The ETFs are domiciled in Ireland.
This document has been communicated by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland, Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, United Kingdom, and Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland.
