Invesco Adds New ETFs To Its Fixed Income Suite That Offers Targeted Exposure to Historically Ignored Fixed Income Sectors

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Two new BulletShares maturities added to Invesco’s robust fixed income suite; combine the benefits of holding individual bonds alongside the advantages of ETFs

ATLANTA, Sept. 19, 2022 /PRNewswire/ — Invesco Ltd. ( NYSE: IVZ), a leading global provider of exchange-traded funds (ETFs), today announced that it is adding two new BulletShares fixed income ETFs to its line-up. These new maturities complement Invesco’s robust fixed income ETF suite by providing investors with access to potential revenue-driving sectors of the fixed income market missing from traditional fixed income benchmark1 exposure.

“Invesco offers a suite of fixed income ETFs that specifically aims to access the approximately 58% of the US fixed income market not covered by the constraints of the US Aggregate Bond Index2,” said Jason Bloom, Head of Fixed Income and Alternatives ETF Product Strategy at Invesco. “Instead of broad building blocks, Invesco ETFs offer a variety of fixed income ETF solutions in targeted sectors, including bank loans and emerging market bonds, as well as access to the expertise of Invesco’s active fixed income managers through ETFs.”

The new BulletShares ETFs offer investors several of the fixed income sectors not captured in broad fixed income benchmarks1, such as high yield corporate bonds, in a structure with a predetermined termination date that aligns with the maturity year or expected call date of the bonds held 3 in its transparent4 ETF portfolio.

  • Invesco BulletShares 2032 Corporate Bond ETF (BSCW)
  • Invesco BulletShares 2030 High Yield Corporate Bond ETF (BSJU)

“We are currently facing a combination of investing challenges not seen for generations. Historically, high levels of inflation and rapidly rising interest rates amid a slowing economy has created a tactical opportunity for more niche fixed income ETFs,” explains Bloom.

Investors who are rethinking their fixed income exposure can find representation across key sectors through Invesco’s fixed income ETF suite. For example, the ETFs included below have been designed to offer diversification in fixed income and potentially generate yield in the current market environment.

Key Fixed Income Sectors

Invesco Fixed Income Sector ETFs

Preferred

Invesco Preferred ETF (PGX)

Invesco Variable Rate Preferred ETF (VRP)

Senior Loans

Invesco Senior Loan ETF (BKLN)

Emerging Market Debt

Invesco Emerging Markets Sovereign Debt ETF (PCY)

Taxable Municipal Bond

Invesco Taxable Municipal Bond ETF (BAB)

Tax Exempt Municipal Bond

Invesco National AMT-Free Municipal Bond ETF (PZA)

High Yield

Invesco Fundamental High Yield Corporate Bond ETF PHB)

Invesco High Yield BulletShares ETFs

Invesco High Yield Bond Factor ETF (IHYF)

TIPS

Invesco Purebeta 0-5 YR US TIPS ETF (PBTP)


“Our fixed income ETFs, many with over a ten-year track record, offer investors the potential to generate enhanced yield without specific bond selection, while simplifying their fixed income investments through low cost ETFs5,” says Bloom. “During this volatile period, Invesco continues to focus on ETFs that can help enhance and diversify6 investors core bond portfolios.”

For a full list of Invesco’s fixed income ETFs, please visit: Invesco Fixed Income ETFs

About Invesco Ltd.

Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US $1.4 trillion in assets on behalf of clients worldwide as of June 30, 2022. For more information, visit www.invesco.com/corporate.

1 The Bloomberg Aggregate Bond Index only tracks the broad performance of the U.S. investment-grade bond market.
2 SIFMA and Bloomberg Barclays, as of 12/31/2020
3 The funds will terminate on or about December 15th for the investment grade and high yield bond series.
4 ETFs that disclose their full portfolio holdings daily.
5 Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
6 Diversification does not guarantee a profit or eliminate the risk of loss.

Important Information

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

Unlike individual bonds, bond funds have fees and expenses and most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. The funds do not seek any predetermined amount at maturity, and the amount an investor receives may be worth more or less than the original investment. In contrast, an individual bond matures; an investor typically receives the bond’s par or (face value).

Nasdaq BulletShares USD Corporate Bond 2032 Index provides exposure to a diversified basket of US dollar-denominated, investment grade bonds, all with a maturity — or, in some cases, effective maturity — of 2032. Nasdaq BulletShares USD High Yield Corporate Bond 2030 Index provides exposure to a diversified basked of US dollar-denominated, high yield corporate bonds, all with a maturity — or, in some cases, effective maturity — of 2030. Invesco BulletShares USD Municipal Bond 2032 Index provides exposure to a diversified basket of US dollar-denominated municipal bonds issued by US states, state agencies, or local governments, all with a maturity — or, in some cases, effective maturity — of 2032. An investor cannot invest directly in an index.

Invesco is not affiliated with Nasdaq Global Indexes.

About Risk

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Funds are subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Funds.

BulletShares ETFs

Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The funds are non-diversified and may experience greater volatility than a more diversified investment.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

During the final year of the funds’ operations, as the bonds mature and the portfolio transitions to cash and cash equivalents, the funds’ yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the funds and/or bonds in the market.

An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds’ income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds’ income.

BulletShares High Yield ETFs

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

BulletShares Municipal ETFs

Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest.

Nasdaq BulletShares® USD Corporate Bond Indexes, Nasdaq BulletShares® USD High Yield Corporate Bond Indexes, and Invesco BulletShares® Municipal Bond Indexes are trademarks of Invesco Indexing LLC (index provider) and have been licensed for use by Invesco Capital Management LLC (investment adviser). Invesco Indexing LLC, Invesco Capital Management LLC, and Invesco Distributors, Inc., ETF distributor, are wholly owned, indirect subsidiaries of Invesco Ltd.

The opinions expressed herein are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invesco.com for the prospectus/summary prospectus.

Media Relations Contact: Stephanie Diiorio, 212-278-9037, [email protected]

SOURCE Invesco Ltd.

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