Expect the expected with Invesco Fixed Income
When unprecedented is the new precedent, peace of mind may be your best asset. Invesco could help you find some.
Now might be a good time for stability. Our fixed income strategies are designed to help.
No matter what twists and turns may come, investors rely on bonds for dependability and income — but who you choose to partner with makes all the difference. Do your fixed income strategies offer unexpected surprises, or the stability you need?
Trusted
Our global fixed income platform is trusted by clients around the world, managing $491 billion in assets.1
Experienced
Our team of 182 fixed income investment professionals average 18 years of industry experience.1
Recognized
Morningstar has awarded 12 of our fixed income funds and ETFs with overall 4-star and 5-star ratings.1-13
Investment grade bonds could provide the stability you need
Consistent, repeatable performance over full market cycles. Sounds kind of boring — which is kind of the point. Investors expect their core bond strategies to act as a ballast for their portfolio. That’s why our investment grade team builds strategies that are designed to capture the potential benefits of bonds while effectively managing their risks.
We seek more upside, less downside
Illustrating the team’s approach, Invesco Total Return Bond ETF and Invesco Core Plus Bond Fund have captured more of the asset class’s upside compared to its Morningstar category peers all while seeking to lessen investors’ exposure to the downside.14
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Striving for outperformance
The team has guided Invesco Total Return Bond ETF through a variety of environments, leading the fund to outperform its benchmark in every monthly rolling 5-year period since manager inception.15
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Municipal bonds may deliver consistent, tax-free income
“The check is in the mail.” That’s what muni bond investors expect to hear. But behind the scenes, our portfolio managers must scour the data on more than 50,00016 municipal bond issuers to find the best opportunities. Our team’s in-depth credit research process is designed to build muni strategies that deliver year after year.
Depth of experience
From launching our first municipal fund in 1976, to creating the new Invesco Rochester High Yield Municipal ETF (IROC) in 2025, we have close to a half century of experience managing municipal bond assets. As one of the largest municipal managers, we can deliver access to unique opportunities — municipalities often come to us first to secure financing for key projects.
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Award-winning performance
Lipper, the leading global investing benchmark, recognized our performance with 13 LSEG Lipper Fund Awards across eight municipal bond strategies in 2024.17
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Designed for consistent income
Illustrating our commitment to consistency, Invesco Rochester Municipal Opportunities Fund made 371 consecutive monthly distribution payments to shareholders from November 1993 to September 2024.18
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Frequently
asked questions
The income produced by municipal bonds is typically exempt from income taxes at the federal level. Municipal bonds may also be exempt from state and local taxes based on where the investor resides.
Whether you’re looking for income potential, stability, tax efficiency, or total return potential, our investment grade portfolios are designed to align investor goals with portfolio objectives.
In our view, there are many good reasons to invest in the municipal bond market now.
First, muni yields are as high as they've been in 15 years following two years of unprecedented interest rate hikes by the Fed.19
Second, municipal bonds have a long history of low defaults compared to corporate bonds because they fund essential American services.20
Third, the municipal yield curve is steeper than the Treasury yield curve. A steep yield curve means that there is value in duration. Municipal investors who own longer dated munis may be compensated much more than those in longer dated Treasuries.
Fourth, federal, state and in some places local tax rates are high and we don't see them going down. This may provide additional value to the muni tax exemption.
In this environment, investment grade credit represents a sweet spot in our view. In a soft landing, rates should come down more slowly which may allow investors to earn attractive yields for longer. In a recession, spreads would widen but rates should come down faster which may allow accelerated total return potential via duration.
The macro backdrop remains supportive for fixed income with trend growth and continued disinflation. Fixed income is not just a trade on duration and rate cuts. Investors may have an opportunity to lock in yields rarely seen in the past 15 years.
Our high conviction approach to investing aims to deliver a highly competitive yield by exploiting anomalies that exist in the high yield municipal market. The Invesco Municipal Bond team employs a bottom-up, research-oriented approach to generate income-driven total return. Our experienced credit research staff works to uncover value in non-rated bonds, which may offer the potential for higher yield and total return.
We believe in giving investors choices that work for their unique needs. Invesco Rochester High Yield Municipal ETF is an actively managed exchange-traded fund that seeks current income exempt from federal income tax.
Invesco Core Plus Bond Fund seeks to offer investors a comprehensive multi-asset fixed income portfolio of high-quality debt instruments plus emerging market and high yield opportunities. By combining traditional core and non-core fixed income securities, this approach is designed to provide enhanced income and return potential.
Our team is empowered by a collaborative culture and extensive research capabilities across geographies, asset classes, and sectors. We bring the resources of a global asset manager while remaining nimble enough to add value through security selection. Through a rigorous, repeatable process that constantly identifies new themes and opportunities, we build best-idea portfolios that seek to deliver strong risk-adjusted performance over time.
We view risk from multiple lenses and manage it using both integrated and independent approaches. First, risk management is embedded within our investment process. Second, multiple governance structures provide independent oversight and monitoring. Third comes senior management and board review.
Footnotes
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1
As of Dec. 31, 2024
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2
Invesco Ultra Short Duration ETF – Incepted 02/12/2008; Ultrashort Bond; The Fund had an overall rating of 4 stars out of 202 funds and was rated 3 stars out of 202 funds, 3 stars out of 184 funds and 4 stars out of 111 funds for the 3-, 5- and 10-year periods, respectively.
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3
Invesco Variable Rate Investment Grade ETF –Incepted 06/30/2016; Ultrashort Bond; The Fund had an overall rating of 5 stars out of 202 funds and was rated 5 stars out of 202 funds, 5 stars out of 184 funds for the 3- and 5- year periods, respectively.
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4
Invesco Core Bond Fund – Incepted 04/27/1998; Intermediate Core Bond; The Fund had an overall rating of 4 stars out of 431 funds and was rated 3 stars out of 431 funds, 4 stars out of 387 funds and 4 stars out of 274 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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5
Invesco Core Plus Bond Fund – Incepted 06/03/2009; Intermediate Core-Plus Bond; The Fund had an overall rating of 4 stars out of 535 funds and was rated 3 stars out of 535 funds, 4 stars out of 480 funds and 4 stars out of 347 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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6
Invesco Floating Rate ESG Fund – Incepted 10/03/2008; Bank Loan; The Fund had an overall rating of 4 stars out of 210 funds and was rated 3 stars out of 210 funds, 4 stars out of 202 funds and 4 stars out of 165 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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7
Invesco Variable Rate Preferred ETF – Incepted 05/01/2014; Preferred Stock; The Fund had an overall rating of 5 stars out of 65 funds and was rated 5 stars out of 65 funds, 5 stars out of 59 funds and 5 stars out of 38 funds for the 3-, 5- and 10-year periods, respectively.
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8
Invesco Limited Term Municipal Income Fund – Incepted 10/03/2008; Muni National Short; The Fund had an overall rating of 5 stars out of 207 funds and was rated 4 stars out of 207 funds, 5 stars out of 197 funds and 5 stars out of 146 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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9
Invesco Short Term Bond Fund – Incepted 10/03/2008; Muni National Short; The Fund had an overall rating of 5 stars out of 207 funds and was rated 4 stars out of 207 funds, 5 stars out of 197 funds and 5 stars out of 146 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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10
Invesco Municipal Income Fund – Incepted 08/12/2005; Muni National Long; The Fund had an overall rating of 4 stars out of 163 funds and was rated 3 stars out of 163 funds, 4 stars out of 157 funds and 5 stars out of 115 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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11
Invesco ATM-Free Municipal Income Fund – Incepted 11/29/2010; Muni National Long; The Fund had an overall rating of 5 stars out of 163 funds and was rated 4 stars out of 163 funds, 5 stars out of 157 funds and 5 stars out of 115 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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12
Invesco High Yield Municipal Fund – Incepted 03/01/2006; High Yield Muni; The Fund had an overall rating of 4 stars out of 183 funds and was rated 3 stars out of 183 funds, 4 stars out of 177 funds and 5 stars out of 120 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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13
Invesco Rochester Municipal Opportunities Fund – Incepted 11/29/2010; High Yield Muni; The Fund had an overall rating of 5 stars out of 183 funds and was rated 4 stars out of 183 funds, 5 stars out of 177 funds and 5 stars out of 120 funds for the 3-, 5- and 10-year periods, respectively. Data provided is for Class Y shares.
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14
Based on performance of the Invesco Total Return Bond ETF (GTO) and the Invesco Core Plus Bond Fund (CPBYX) as of Dec. 31, 2024 against their respective Morningstar peer groups. GTO’s up capture and down capture is versus the Morningstar Intermediate Core Plus Bond ETF category peer group. GTO’s up capture rate was 112.62 (5th percentile is 111.40). Its down capture rate was 103.77 (75th percentile is 103.24) since manager inception 5/1/2018. CPBYX’s up capture and down capture is versus the Morningstar Core Plus Bond category. CPBYX’s up capture rate was 115.07 (5th percentile is 111.40). Its down capture rate was 99.63 (50th percentile was 99.22) since manager inception 7/1/2013. Source: ©2025 Morningstar Direct. Peer universe information was run on February 27, 2025. Morningstar Rankings are based on total return, excluding sales charges and including fees and expenses versus all funds in the Morningstar category. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Had fees not been waived and/or expenses reimbursed currently or in the past, the ranking would have been lower.
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15
Source: Invesco. Monthly rolling 5-year annualized returns from April 9, 2018 (manager inception date) through December 31, 2024. Past performance is not a guide to future return. Refers to the Invesco Total Return Bond ETF (NAV) versus the Bloomberg US Aggregate Bond Index. An investment cannot be made into an index.
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16
Source: Invesco as of Dec. 31, 2024.
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17
As of December 31, 2024. Source: LSEG Lipper Fund Awards. © 2024 LSEG Lipper. All The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Asset Class Group Award Asset class group awards will be given to the best large and small groups separately. Large fund family groups with at least five equity, five bond, or three mixed-asset portfolios in the respective asset classes are eligible for a group award. Small fund family groups will need to have at least three distinct portfolios in one of the asset classes – equity, bond, or mixed-asset. The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period. In cases of identical results, the lower average percentile rank will determine the winner. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed. LSEG Lipper Inc. is a major independent mutual fund tracking organization. Invesco California Municipal Fund Y shares were named best among 29 and 29 California Municipal Debt Funds, respectively, for the 5- and 10-year periods ending November 30, 2023. Invesco AMT-Free Municipal Income Y shares were named best among 67 General & Insured Municipal Debt Funds for the 10-year period ending November 30, 2023. Invesco Rochester® Municipal Opportunities Fund Y shares were named best among 34 High Yield Municipal Debt Funds for the 10-year period ending November 30, 2023. Invesco New Jersey Municipal Fund R6 shares were named best among 14 New Jersey Municipal Debt Funds for the 3-year period ending November 30, 2023. Invesco New Jersey Municipal Fund Y shares were named best among 14 New Jersey Municipal Debt Funds for the 5-year period ending November 30, 2023. Invesco Rochester® New York Municipals Fund Y shares were named best among 24 and 24 New York Municipal Debt Funds, respectively, for the 5- and 10-year periods ending November 30, 2023. Invesco Pennsylvania Municipal Fund R6 shares were named best among 15 Pennsylvania Municipal Debt Funds for the 3-year period ending November 30, 2023. Invesco Pennsylvania Municipal Fund Y shares were named best among 15 and 15 Pennsylvania Municipal Debt Funds, respectively, for 5- and 10-year periods ending November 30, 2023. Invesco Short Term Municipal Fund Y shares were named best among 28 Short Municipal Debt Funds for the 10-year period ending November 30, 2023. Invesco Limited Term Municipal Income Fund R6 shares were named best among 22 Short-Intermediate Municipal Debt Funds for the 5-year period ending November 30, 2023.
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18
Invesco and Simfund, as of December 31, 2024.
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19
Source: Bloomberg, Municipal Bond Index as of December 31, 2024.
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20
Municipal bonds have a long history of low defaults compared to corporate bonds, because they fund essential American services. Credit fundamentals have been strong for the past several years, and they remain so. In 2024, according to S&P rating changes, we saw two credit rating upgrades for each rating downgrade. In 2023, there were 4 ratings upgrades for each downgrade. Source: S&P rating changes: 747 credit ratings upgraded versus 345 downgraded over twelve months ending August 31, 2024.
Municipal bonds
| Ticker | Fund name | Duration | Vehicle | Download |
|---|---|---|---|---|
| ACTDX | Invesco High Yield Municipal Fund | Short | Mutual Fund | Fact sheet |
| VMIIX | Invesco Municipal Income Fund | Ultrashort | Mutual Fund | Fact sheet |
| VKLIX | Invesco Intermediate Term Municipal Fund | Intermediate | Mutual Fund | Fact sheet |
| ATFYX | Invesco Limited Term Municipal Income Fund | Intermediate | Mutual Fund | Fact sheet |
| ORSYX | Invesco Short Term Municipal Fund | Short | Mutual Fund | Fact sheet |
Investment grade bonds
| Ticker | Fund name | Duration | Vehicle | Download |
|---|---|---|---|---|
| GTOS | Invesco Short Duration Bond ETF | Short | ETF | Fact sheet |
| VRIG | Invesco Variable Rate Investment Grade ETF | Ultrashort | ETF | Fact sheet |
| OPBYX | Invesco Core Bond Fund | Intermediate | Mutual Fund | Fact sheet |
| ACCHX | Invesco Corporate Bond Fund | Intermediate | Mutual Fund | Fact sheet |
| STBYX | Invesco Short Term Bond Fund | Short | Mutual Fund | Fact sheet |
NA4246019
Class Y shares are closed to most investors. Please see the prospectus for more details.
Invesco does not offer tax advice. Please consult your own tax professional for information regarding your personal tax situation.
There is no guarantee that the Fund's income will be exempt from federal and state income taxes.
Fixed income products are subject to risk, including credit risk of the issuer and the effects of changing interest rates.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. Investments concentrated in a comparatively narrow market sector can be more volatile than non-concentrated investments.
There are risks involved with investing in ETFs, including possible loss of money. Index–based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index–based and actively managed ETFs are subject to risk similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. Please be aware that the mutual funds and ETFs listed may be subject to certain additional risks. See the prospectus for complete details about the risks associated with each fund.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed income investment to a change in interest rates. Duration is expressed as a number of years.
The yield curve plots interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates to project future interest rate changes and economic activity.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25 000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.
Effective on February 24, 2025, The Invesco Strategic Municipal Income Fund invests at least 80% of its total assets in low-to medium-quality municipal securities. The Fund’s name changed to “Invesco Rochester High Yield Municipal ETF.” As a result of this change, the Fund changed its ticker to “IROC.”
A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts.
Source: Morningstar, Inc. Morningstar ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on the downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three-year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Morningstar ratings are as of December 31, 2024, the most recent data available and are subject to change every month. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings for other share classes may differ due to different performance characteristics.
©2025 Morningstar, Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance cannot guarantee comparable future results.
Spread represents the difference between two values or asset returns.
