Invesco has launched four new active ETFs, expanding the firm’s lineup of fixed income solutions.
The new active fixed income offerings are the Invesco AAA CLO Floating Rate Note ETF (ICLO ), the Invesco High Yield Select ETF (HIYS ), the Invesco Municipal Strategic Income ETF (IMSI ), and the Invesco Short Duration Bond ETF (ISDB ), which debuted on the CBOE on December 9.
“Advisors and end clients are increasingly embracing actively managed ETFs in 2022, with the category gathering 14% of the net inflows despite managing just 4% of the asset base,” Todd Rosenbluth, head of research at VettaFi, said. “It is great to see Invesco’s fixed income expertise is now more accessible to ETF-centric advisors, as the firm has deep resources and strong capabilities.”
Anna Paglia, global head of Invesco ETFs and indexed strategies, said that Invesco was a pioneer in offering skilled active management outside of the mutual fund wrapper when the firm launched its first active ETF over 14 years ago. “We remain committed to delivering alpha generating strategies from Invesco’s strongest active managers through a range of product structures,” Paglia added.
“Today’s launch of four new actively managed ETFs will build on our already robust, existing fixed income ETF line-up, increasing the variety of tools available to help clients achieve their investment objectives,” Paglia said. “Invesco continues to utilize the many benefits of the ETF structure to offer clients access to the perspective and specialized background of Invesco’s investment teams.”
ICLO seeks current income and capital preservation and invests in floating-rate note securities issued by collateralized loan obligations (CLOs) that are rated AAA or equivalent by nationally recognized statistical rating organizations (NRSROs). The fund charges 26 basis points.
HIYS seeks current income and will invest in higher-quality below-investment-grade fixed income securities, such as corporate bonds and convertible securities. The fund considers such higher-quality securities as those rated between B- and BB+ (or equivalent) by NRSROs. The fund’s expense ratio is 48 basis points.
IMSI seeks current income exempt from federal income tax by investing in municipal securities exempt from federal income taxes and in other instruments that have similar economic characteristics. The fund will normally maintain a weighted average portfolio duration of less than 7.5 years. IMSI charges 39 basis points.
ISDB seeks total return, comprised of income and capital appreciation. The fund invests in fixed income securities, including high yield bonds, and other instruments that have similar economic characteristics. ISDB aims to maintain a portfolio maturity and duration between one and three years. The fund charges 35 basis points.
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