
Fixed Income ETFs
ETFs can offer convenient access to broad and diversified baskets of bonds at a low cost. Discover our range of fixed income ETFs.
You can gain exposure to corporate bonds from issuers meeting strict ESG criteria
Corporate bond markets are much more diverse than those for government bonds, with exposure to companies operating in a variety of sectors. In addition to the number of years to maturity and the currency in which the bonds are issued, corporate bond investors also have a choice in terms of the issuing companies’ credit quality and even how the businesses are managed.
Our core range of corporate bond ETFs include those aiming to avoid certain sectors and to emphasise companies with strong environmental, social and governance (ESG) characteristics. They provide investors with low-cost core elements for constructing diversified ESG portfolios.
We offer four investment-grade ETFs, three focused on single currency exposures denominated in USD, EUR or GBP and one which provides global bond exposure. Our range of single-currency Corporate Bond ESG ETFs track the Bloomberg MSCI Liquid Corporate ESG Weighted SRI indices which are designed to provide broad and diversified exposure to investment grade corporate bonds denominated in the respective currencies.
Our Global Corporate Bond ESG ETF tracks the performance of the multi-currency Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond index, which aims to provide broad and diversified exposure to investment grade corporate bonds issued in USD, EUR, GBP, and CAD, whilst applying more stringent ESG criteria than the single currency indices.
All indices, however, integrate ESG by not only applying negative screening but also by tilting constituent weights based on ESG ratings. Securities are excluded from the index if the issuing company:
Each of the remaining securities has an ESG score that has been assigned using MSCI ESG metrics. This ESG Score is used to re-weight the eligible securities from their natural (market capitalisation) weights by applying a factor tilt in favour of constituents with higher ESG Scores.
We also offer two high-yield ETFs that follow indices with similar methodologies as their investment-grade counterparts. The exclusions are the same as those listed above, other than our global high-yield ETF, which includes issuers from developed and emerging markets. As with the investment-grade ETFs, both the global and the USD high-yield ETFs are also designed to re-weight eligible securities using their ESG Scores.
Each of the Invesco Corporate Bond ESG UCITS ETFs aims to track the performance of an index through passive, physical replication. Invesco’s team of portfolio managers aim to achieve the fund’s objective by using portfolio modelling tools and techniques to buy and hold a proportion of the index securities that represents the characteristics of the entire index. The objective of this sampling method is to replicate the index performance as closely as possible while reducing the costs that would normally be incurred with full replication.
Our portfolio management team is responsible for the efficient buying and selling of the ETF’s bonds, and the rebalancing of the portfolio, while our dedicated capital markets team works closely with leading brokers and market-makers who facilitate the efficient trading of our ETFs.
The full list of ETF holdings and index constituents are published daily on the Invesco ETF website.
ETFs can offer convenient access to broad and diversified baskets of bonds at a low cost. Discover our range of fixed income ETFs.
April's fixed income markets saw mixed performance and volatility. Read our latest thoughts on how fixed income markets fared during the month and what we think you should be looking out for in the near term.
Let us know using this form and one of our specialist team will quickly get back to you.