Invesco Floating Rate Municipal Income ETF

VRDOs and auction rate securities (ARS) are both short-duration municipal securities with interest rates that reset periodically. In general, VRDOs are viewed as more liquid and have shorter reset periods on their interest rates.

Yes, the income on VRDOs is generally exempt from federal taxes and may also be exempt from state and local taxes depending on the investor’s state of residence.

VRDOs have very short durations because their interest rates reset periodically, typically weekly or monthly.

One of the primary benefits of VRDOs is that the income they produce is generally exempt from federal income taxes, which may make them particularly appealing to investors in higher tax brackets. VRDOs also have floating rates that are periodically reset, so their yields may increase when short-term interest rates rise.

VRDOs may appeal to investors looking to get exposure to the ICE US Municipal AMT-Free VRDO Constrained Index in the ETF structure. The Invesco Floating Rate Municipal Income ETF seeks to track the investment results (before fees and expenses) of the ICE US Municipal AMT-Free VRDO Constrained Index.