ETF Why consider ultrashort now

Why consider ultrashort now

Jason Bloom
Head of Fixed Income and Alternatives Product Strategy

Invesco

If you're still sitting on a mountain of uninvested cash or overweighting long-term bonds, your timing might be a little off. The market shifted in the first quarter. Higher commodity prices and inflation expectations pushed up interest rates across the curve. If you haven't adjusted your investments, you may be leaving money and opportunity on the table. We believe now is a good time to consider ultra-short duration and short-term Treasury ETFs.

[On-screen text] Ultra-short duration and short-term Treasury ETFs

[On-screen text] Higher-for-even-longer inflation expectations

Inflation expectations are now higher for even longer due to resilient economic growth and rising commodity prices. Those inflation expectations are well above 3% for 2026,¹ and if your cash is earning less than that, it’s losing purchasing power. Ultra-short and short-term Treasury ETFs are currently offering yields close to or more than 4%,² with near-zero duration risk and the potential protection of exposure to high-quality, investment grade credit. The high quality and short maturity debt held in ultra short and short-term Treasury ETFs can provide a competitive yield while also aiming to minimize the rising risk of default that higher rates and commodity prices can inflict on lower quality or longer maturity bonds.

[On-screen text] Case for high-quality US treasuries

With volatility in the Middle East and high oil prices, high-quality US Treasury bills may benefit from safe-haven flows, and rising prices and rising rates also have the potential to put pressure on highly leveraged corporate balance sheets.

[On-screen text] TBLL, Invesco Short Term Treasury ETF

So, consider TBLL, Invesco Short Term Treasury ETF.

[On-screen text] Liquidity

In times of high uncertainty, we believe liquidity is king, and with ultra-short ETFs, you can stay in the market while aiming to minimize the impact of volatility in interest rates or credit spreads. And with their daily liquidity, they’re also highly accessible. If inflation stays sticky and rates move even higher, long-term bonds may face increased pressures driven by their longer duration. Ultra-short ETFs allow you to benefit from higher rates, while helping to shelter savings from the impact of rising rates on more duration-sensitive portfolios.

[On-screen text] GSY, Invesco Ultra Short Duration ETF

Consider GSY, Invesco Ultra Short Duration ETF.

Thank you for watching. For more information about these funds, please review the details below the video.

Important Information

1 Source: Bloomberg L.P. The Consumer Price Index (CPI) expectation for 2026 is 3.1% as of April 9, 2026.

2 Source: Bloomberg L.P., April 9, 2026. The average of the combined Ultrashort/short-term treasury ETF segment is 4.15%.

Important information

NA5387187

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

Past performance is not a guarantee of future results. An investment cannot be made into an index. 

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.

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

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Funds.

Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.

TBLL

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

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

Treasury securities are backed by the full faith and credit of the US government as to the timely payment of principal and interest. Although the Fund may hold securities that carry U.S. Government guarantees, these guarantees do not extend to Shares of the Fund.

The Fund’s use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.

Reinvestment risk is the risk that a bond's cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond

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

The Fund is not a money market fund and does not attempt to maintain a stable net asset value (NAV).

GSY 

Mortgage- and asset-backed securities, which are subject to call (prepayment) risk, reinvestment risk, and extension risk. These securities are also susceptible to an unexpectedly high rate of defaults on the mortgages held by a mortgage pool, which may adversely affect their value. The risk of such defaults depends on the quality of the mortgages underlying such security, the credit quality of its issuer or guarantor, and the nature and structure of its credit support. 

The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

If the seller of a repurchase agreement defaults on its obligation or declares bankruptcy, delays in selling the securities underlying the repurchase agreement may be experienced, resulting in losses.

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

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

The Fund will invest in bonds with short-term maturity (one year or less), which may have additional risks, including interest rate changes over the life of the bond. The average maturity of the Fund's investments will affect the volatility of the Fund's share price.

The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities. 

The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Issuers of sovereign debt or the governmental authorities that control repayment may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of default. Without debt holder approval, some governmental debtors may be able to reschedule or restructure their debt payments or declare moratoria on payments.

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

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. 

The Fund’s income may decline when interest rates fall if it holds a significant portion of short-duration securities and/or securities with floating or variable interest rates. If the Fund invests in lower-yielding bonds, as the bond’s portfolio mature, the Fund will need to purchase additional bonds, thereby reducing its income. 

The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind, because of the nature of the Fund's investments. As such, investments in the Fund may be less tax-efficient than investments in ETFs that create and redeem in-kind.

Obligations issued by US Government agencies and instrumentalities may receive varying levels of support from the government, which could affect the fund’s ability to recover should they default.

The credit research process utilized by the Fund to implement its investment strategy in pursuit of its investment objective considers factors that include, but are not limited to, an issuer's operations, capital structure, and environmental, social, and governance (ESG) considerations. Credit quality analysis, therefore, may consider whether any ESG factors pose a material financial risk or opportunity to an issuer. 

Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty, and management risks. An investment in a derivative could lose more than the cash amount invested.

During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the Fund, the ability of the Fund to value its holdings becomes more difficult, and the judgment of the Sub-Adviser may play a greater role in the valuation of the Fund's holdings due to reduced availability of reliable objective pricing data.