Fixed income ETFs

Fixed income investing with ETFs

Discover the potential benefits and use cases of investing in fixed income exchange-traded funds.

View ETFs range
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Core exposures

Delivering a range of low-cost government, investment-grade credit and ESG exposures to enhance your fixed income portfolios.

Innovative solutions

Providing a wide offering of innovative fixed income exposures, across sectors, regions and strategies.

Global expertise

From combining global resources with local expertise, we aim to provide you with the best potential outcomes.

Capture the growing importance of fixed income ETFs

Fixed income ETFs have experienced rapid growth in recent years, with global assets under management reaching US$2.2 trillion in 2024 and growth projected to accelerate in the coming years. Investors are increasingly recognising the benefits of using ETFs in their bond portfolios, such as diversification and exposure to a broad range of bonds, which helps spread risk across different issuers and sectors. Additionally, fixed income ETFs offer liquidity and cost advantages, making them easier to trade and often more efficient than managing individual bonds.

Our suite of fixed income ETFs

AAA CLO UCITS ETFs

For investors seeking innovative ways to diversify their income portfolio, the highest quality AAA-rated tranche of CLO (Collateralised Loan Obligation) notes can offer a compelling investment proposition. AAA CLO notes offer some of the most attractive yields among high-quality investment grade credit, while featuring low interest rate sensitivity due to their floating rate structure and exhibiting low correlation to traditional asset classes—potentially enhancing portfolio risk-adjusted returns. Learn more about the investment case of adding AAA CLO notes to your portfolio.

We offer two actively managed ETFs that bring full transparency, cost efficiency, and enhanced liquidity to this dynamic asset class. These strategies provide diversified exposure to the broad USD-denominated (with GBP-hedged share classes available for those seeking to mitigate currency risk) and EUR-denominated AAA CLO notes market.

Managed by Invesco Private Credit, the ETFs follow an active approach to manager selection, holding a portfolio of primarily AAA-rated, floating rate, CLO notes with the added flexibility to allocate to certain non-benchmark securities. As one of the world’s largest managers of bank loans and a perennial CLO issuer, we understand the importance of selecting the right CLO managers in our investments and use our 30+ year experience to actively select securities, aiming to deliver returns similar to the benchmark.

This product is intended for professional investors only.

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    Unlocking the Power of CLOs

    By Invesco

    How Collateralised Loan Obligations (CLOs) offer portfolio diversification and an attractive potential return profile in today’s evolving financial landscape.

    6 February 2025
View our AAA CLO ETFs

BulletShares

BulletShares are a suite of fixed-term ETFs that enable investors to build customised portfolios with tailored maturity profiles to meet their investment goals. They are designed to combine a final maturity like an individual bond with the diversification and trading benefits of an ETF.

Investing across various BulletShares ETF maturities can enable investors to build a cost-effective, diversified laddered portfolio designed to manage interest rate risk and cash flows. Our BulletShares UCITS ETFs offer targeted exposure to USD (with GBP-hedged share classes available for those seeking to mitigate currency risk), and EUR denominated investment grade corporate bonds, with a choice of maturities ranging from 2026 to 2030.

  • ETF
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    ETF

    BulletShares UCITS ETFs

    BulletShares® ETFs are a suite of fixed-term exchange-traded funds (ETFs) that enable investors to build customized portfolios tailored to specfic maturity profiles and investment goals.

View our BulletShares ETFs

Government bonds

Backed by the world's strongest and largest economies, developed market government bonds are among the safest and most liquid asset classes. Government bonds tend to perform well in turbulent times and can help diversify risk in multi-asset portfolios. Often viewed as a possible buffer for volatile equity and other riskier markets, government bonds serve as a core allocation for investors.

Our wide range of developed market, low-cost government bond ETFs provide a choice of broad exposure and maturity ranges across US treasuries, UK gilts, and European government bonds. Whether you’re seeking capital preservation through short-dated bonds or positioning for potential interest rate declines with longer maturities, our ETFs provide the flexibility to tailor your interest rate exposure with precision.

View all government bond ETFs

Corporate bonds

Our corporate bond ETF range offers cost-effective exposure to the global credit markets. Whether targeting investment grade or high yield, these ETFs are designed to deliver diversified access to corporate debt with transparency and efficiency. The suite spans core exposures as well as targeted strategies like High Yield Fallen Angels, which focuses on a specific segment of the US high yield market with the potential for capital appreciation alongside a high level of income.

With a growing focus on sustainability, many of our strategies integrate ESG considerations—helping investors align their fixed income exposure with long-term environmental, social, and governance goals. Invesco’s passive corporate bond ETFs offer a comprehensive and responsible toolkit for building resilient credit portfolios.

View all corporate bonds ETFs

Innovative income

For investors seeking targeted exposure to higher-yielding segments of the fixed income market, our subordinated bond ETFs could be a solution. The Invesco AT1 Capital Bond and Invesco Euro Corporate Hybrid ETFs focus on Additional Tier 1 (AT1) contingent convertible bonds and European corporate hybrid debt, respectively; two areas that are known for their income potential and structural complexity. These ETFs are designed to provide diversified access to instruments that sit lower in the capital structure.

AT1s are a type of hybrid debt instrument primarily issued by European banks as regulatory capital. They sit just below senior debt within the capital structure, and it is this subordination that drives their higher yield rather than the riskiness of the issuer.

Corporate hybrid bonds are similar to AT1s in many ways, including often being issued by companies with strong balance sheets and investment-grade credit ratings. The most obvious difference is that AT1s are only issued by financial institutions whereas corporate hybrids are issued by utilities, telecoms and companies in other non-financial sectors. Corporate hybrids can be appealing for the issuing company because credit rating agencies treat them as part debt/part equity, meaning they can support the issuer’s credit metrics.

View Invesco AT1 Capital Bond ETFs View Invesco Euro Corporate Hybrid ETFs

Active ESG

In collaboration with our Invesco Quantitative Strategies (IQS) team, we offer three actively managed fixed income ESG ETFs. Leveraging advanced technologies and data-driven insights, the IQS team designs systematic, multi-factor strategies that blend the strengths of factor investing with robust ESG integration. With 40+ team members across the globe, the team has extensive experience in rule-based investments.

For EUR-denominated investment grade credit, we provide two solutions: one covering the full curve and another focused-on bonds under five years. Both use a smart multi-factor approach to help mitigate the biases ESG can introduce into corporate bond indices.

Our third active ETF targets the European government bond market, investing in a portfolio of government and government-related bonds. This strategy incorporates ESG criteria and maximises exposure to Green Bonds, while considering liquidity and market exposure.

  • Equities
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    Equities

    Systematic equities

    Discover Invesco's systematic equity strategies, using data-driven insights, multi-factor investing, and ESG integration to deliver tailored solutions.

  • Investment risks

    Any investment decision should take into account all the characteristics of the funds as described in the legal documents. For sustainability related aspects, please refer to https://www.invescomanagementcompany.ie/dub-manco.

    Investment risks: For complete information on risks, refer to the legal documents. Please click here to view more information. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
    Applies to Invesco BulletShares UCITS ETFs: Value fluctuation, Credit risk, Interest rates, Environmental, social and governance, Concentration, Maturity Year Risk, Declining Yield Risk, Reinvestment Risk, Early Termination Risk, Securities Lending.
    Applies to Invesco AAA CLO UCITS ETFs: Value fluctuation, Credit risk, Interest rates, Liquidity risk, CLO Debt Securities risk.
    Applies to Invesco AT1 Capital Bond UCITS ETF: Value fluctuation, Emerging Markets, Credit Risk, Interest Rates, Contingent Convertible Bonds, Securities Lending, Environmental, Social and Governance.
    Applies to Invesco Euro Corporate Hybrid UCITS ETFs: Value Fluctuation, Emerging Markets, Credit Risk, Interest Rates, Non-investment grade securities Risk/High yield debt instruments, Securities Lending, Holdings Concentration.
Invesco Fixed income

Fixed Income
Fixed Income Strategies

Discover Invesco's diverse fixed income strategies, combining global expertise and innovative solutions to meet your investment needs.
Learn more

Transcript

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  • Private credit
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    Exploring the key features of AAA-rated CLO notes

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    Explore the benefits of incorporating AAA-rated CLO notes may provide to an investment strategy including consistent income potential and possible hedge against interest-rate volatility.

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Fixed Income FAQs

Fixed income ETFs give investors access to bonds and other fixed income securities, such as US Treasuries, corporate debt, and municipal bonds. Some potential benefits of fixed income ETFs include liquidity, portfolio transparency, and diversification.

Fixed income ETFs give investors access to bonds and other fixed income securities, such as US Treasuries, corporate debt, and municipal bonds. Some potential benefits of fixed income ETFs include liquidity, portfolio transparency, and diversification.

As their name suggests, many investors use fixed income ETFs to generate income. Some of the bond asset classes that fixed income ETFs hold are traditionally used to seek overall portfolio stability as when market uncertainty leads to disruption in the equity markets, bonds may provide some diversification. Investors can also use specialized fixed income ETFs to help diversify their sources of income as well as help tailor their exposure to credit and duration risk.

AAA CLOs are investment grade securities. A CLO is a special purpose vehicle (SPV) securitized by a pool of assets, including senior secured leveraged loans and bonds. Distributions from the pool are paid out to the CLO’s obligations based on a cashflow waterfall, with first flow to the highest debt tranche of the CLO and continue to the lowest debt tranche followed by the equity. AAA CLO notes are the highest rated tranche of the CLO structure.

Many investors are attracted to fixed income ETFs for their benefits, including diversification, cost effectiveness, transparency, and liquidity.

Floating rate loans typically pay yields based on a spread above a reference base rate (SOFR for USD bonds, and EURIBOR for EUR bonds), and as such yields can decrease or decrease as the reference base rates change.
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  • Investment risks

    For complete information on risks, refer to the legal documents.

    Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Credit risk: The creditworthiness of the debt the Fund is exposed to may weaken and result in fluctuations in the value of the Fund. There is no guarantee the issuers of debt will repay the interest and capital on the redemption date. The risk is higher when the Fund is exposed to high yield debt securities.

    Interest rates: Changes in interest rates will result in fluctuations in the value of the fund.

    Applies to Invesco AAA CLO UCITS ETFs only

    Liquidity risk: It may be difficult for the Fund to buy or sell certain instruments in stressed market conditions. Consequently, the price obtained when selling such instruments may be lower than under normal market conditions. 

    CLO Debt Securities risk: Highly rated tranches of CLO Debt Securities may be downgraded, and in stressed market environments even highly rated tranches of CLO Debt Securities may experience losses due to defaults in the underlying loan collateral, the disappearance of the subordinated/equity tranches, market anticipation of defaults, as well as negative market sentiment with respect to CLO securities as an asset class. 

    Applies to Invesco AT1 Capital Bond UCITS ETF only

    Emerging markets: As a large portion of this Fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets.

    Contingent Convertible Bonds: This Fund invests in contingent convertible bonds, a type of corporate debt security that may be converted into equity or forced to suffer a write down of principal upon the occurrence of a pre-determined event. If this occurs, the Fund could suffer losses. Other notable risks of these bonds include liquidity and default risk.

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults.

    Environmental, social and governance: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings.

    Applies to Invesco Euro Corporate Hybrid UCITS ETFs only

    Emerging markets: As a large portion of this Fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets.

    Non-investment grade securities Risk/High yield debt instruments: This Fund may hold a significant amount of debt instruments which are of lower credit quality. This may result in large fluctuations of the value of the ETF as well as impacting its liquidity under certain circumstances.

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults.

    Holdings concentration: The Fund might be exposed to a limited number of positions which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Applies to Invesco Global Corporate Bond ESG Climate Transition UCITS ETF and Invesco BulletShares UCITS ETFs only

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults.

    Environmental, social and governance: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings.

    Concentration: The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Currency hedging: Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class.

    Applies to Invesco BulletShares UCITS ETFs only

    Maturity Year Risk: The term of the Fund is limited. The Fund will be terminated on the Maturity Date.

    Declining Yield Risk: During the Maturity Year, as the corporate bonds held by the Fund mature and the Fund’s portfolio transitions to cash and Treasury Securities, the Fund’s yield will generally tend to move toward the yield of cash and Treasury Securities and thus may be lower than the yields of the corporate bonds previously held by the Fund and/or prevailing yields for corporate bonds in the market.

    Reinvestment Risk: The issuers of debt securities (especially those issued at high interest rates) may repay principal before the maturity of such debt securities. This may result in losses to the Fund on debt securities purchased at a premium.

    Early Termination Risk: The Fund may be terminated in certain circumstances which are summarised in the section of the Prospectus titled “Termination.

    Important information

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

    For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.ie. The management company may terminate marketing arrangements.

    UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

    “Bloomberg®” and the Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond Index  (the “Index”) are trademarks or service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Index (collectively, “Bloomberg”) and/or one or more third-party providers (each such provider, a “Third-Party Provider,”) and have been licensed for use for certain purposes to Invesco (the “Licensee”). To the extent a Third-Party Provider contributes intellectual property in connection with the Index, such third- party products, company names and logos are trademarks or service marks, and remain the property, of such Third-Party Provider. Bloomberg is not affiliated with the Licensee or a Third-Party Provider, and Bloomberg does not approve, endorse, review, or recommend the Invesco Global Corporate Bond ESG UCITS ETF (the “Financial Product”). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Index or the Financial Product.

    “Bloomberg®” and the Bloomberg Euro Universal Corporate ex Financials Hybrid Capital Securities 8% Capped Bond Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Invesco. Bloomberg is not affiliated with Invesco, and Bloomberg does not approve, endorse, review, or recommend the Invesco Euro Corporate Hybrid Bond UCITS ETF. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Invesco Euro Corporate Hybrid Bond UCITS ETF.

    The iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8% Issuer Cap) referenced herein is the property of Markit Indices Limited and is used under license. The funds or securities referred to herein are not sponsored, endorsed, or promoted by Markit Indices Limited.

    For the full objectives and investment policy please consult the current prospectus.

    This product is offered in Belgium under the Public Offer Exemption. This material is intended only for professional investors and may not be used for any other purpose nor passed on to any other investor in Belgium. German investors may obtain the offering documents free of charge in paper or electronic form from the issuer or from the German information agent (Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany).

    The publication of the supplement in Italy does not imply any judgment by CONSOB on an investment in a product. The list of products listed in Italy, and the offering documents for and the supplement of each product are available: (i) at etf.invesco.com (along with the audited annual report and the unaudited half-year reports); and (ii) on the website of the Italian Stock Exchange borsaitaliana.it.

    The representative and paying agent in Switzerland is BNP PARIBAS, Paris, Zurich Branch, Selnaustrasse 16 8002 Zürich. The Prospectus, Key Information Document, and financial reports may be obtained free of charge from the Representative. The ETFs are domiciled in Ireland.

    EMEA4718712/2025