Fixed income ETFs

Fixed income investing with ETFs

Discover the potential benefits of investing in Invesco’s fixed income ETFs, such as income generation and portfolio diversification.

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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

Introducing the Invesco 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 provide some of the best yields among high quality investment grade credit, feature low interest rate sensitivity due to their floating rate, and exhibit low correlation to other traditional asset classes, potentially enhancing portfolio risk-adjusted returns. Learn more about the investment case of adding AAA CLO notes to your portfolio.

We are excited to introduce two new actively managed ETFs, bringing full transparency, cost efficiency, and enhanced liquidity to this dynamic asset class. Our new ETFs are designed to provide diversified exposure to the broad USD-denominated 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.

We’ve launched a range of BulletShares UCITS ETFs

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 UCITS ETF maturities can enable investors build a cost-effective, diversified laddered portfolio to manage interest rate risk and cash flows. Our BulletShares UCITS ETFs offer targeted exposure to USD and EUR denominated investment grade corporate bonds, with a choice of maturities ranging from 2026 to 2030.

Investment risks - please click here to view more information.
For complete information on risks, refer to the legal documents. Value fluctuation, Credit risk, Interest rates, Environmental, social and governance, Concentration, Maturity Year Risk, Declining Yield Risk, Reinvestment Risk, Early Termination Risk, Securities Lending.

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.

View all government bond ETFs

Investors wanting higher yields than they could get from government or investment grade corporate bonds would normally have to invest in bonds from issuers with lower credit ratings. Less financially secure issuers must pay higher coupons to compensate bond investors for the additional risk they’d be taking, i.e., the risk of the issuer being unable to pay the coupons or the principal. While this trade-off is agreeable for some investors, others are unable to accept this higher default risk.

Fortunately, more innovative solutions are now available. While they are not without risk, our innovative income ETFs can offer investors the potential for higher yields without having to necessarily accept lower credit quality at the issuer level. These securities are often from investment-grade issuers, with the higher coupons driven by their subordination and other features, not the company’s credit rating.  

View all innovative income ETFs

Investor appetite for Environmental, Social and Governance (ESG) solutions across all asset classes has grown rapidly in recent years. Within fixed income, most of the focus for ESG investors is in the corporate bond space. In addition to providing exposure to companies operating in a variety of sectors, corporate bond ETFs offer choices such as targeting different maturities, currencies or credit quality. 

We’ve expanded our range of Corporate Bond ESG ETFs with our Invesco Global Corporate Bond ESG UCITS ETF, which provides multi-currency global investment grade credit exposure. All our corporate bond ESG ETFs aim to avoid certain sectors by applying business involvement screens, while also tilting the index in favour of companies with stronger ESG criteria. They provide investors with low-cost core elements for constructing diversified ESG portfolios. In addition, for EUR-denominated investment grade credit we also offer two actively managed solutions (full curve and under-five year) which use an intelligent multi-factor approach to offset some of the biases that ESG introduces to corporate bond indices.

But ESG is not limited to corporates. We also offer an actively managed ETF that aims to provide the performance of the European government bond market by investing in a portfolio of government and government-related bonds that also factors certain ESG criteria into the portfolio construction and maximises exposure to Green Bonds, subject to exposure and liquidity considerations.

View all ESG fixed income ETFs

  • Investment risks

    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. 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. Applies to the Invesco Global Corporate Bond ESG UCITS ETF: Value fluctuation, Credit risk, Interest rates, Environmental, social and governance, Securities lending, Concentration, Currency hedging.
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Invesco Fixed income

Fixed Income
Fixed income solutions

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

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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.

Since bonds are generally not as volatile as other assets, like stocks, they can serve as a ballast for an overall portfolio. In particular, ETFs that invest in high quality bonds, like US Treasuries and investment grade credit, may help provide portfolio stability. When market uncertainty leads to disruption in equity markets, fixed income ETFs may provide diversification benefits. Within fixed income ETFs, strategies with lower duration may help preserve capital when interest rates rise.

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.

  • 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 Global Corporate Bond ESG 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.

    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.

    EMEA4202164/2025