The Invesco Fundamental Investment Grade Corporate Bond ETF (Fund) is based on the RAFI® Bonds US Investment Grade 1-10 Index (Index). The Fund will generally invest at least 80% of its total assets in the securities that comprise the Index. The Index is comprised of US dollar-denominated investment grade corporate bonds that are SEC-registered securities or Rule 144A securities with registration rights and whose issuers are public companies listed on a major US stock exchange. Only investible non-convertible, non-exchangeable, non-zero, fixed coupon high-yield corporate bonds qualify for inclusion in the Index. Based on the Fundamental Index® methodology developed by Research Affiliates, LLC, the Index is compiled and calculated by ALM Research Solutions, LLC. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a "sampling" methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced monthly and reconstituted annually in March.
Morningstar Rating ™Overall Rating - Corporate Bond Category
As of 09/30/2022 the Fund had an overall rating of 4 stars out of 187 funds and was rated 4 stars out of 187 funds, 4 stars out of 167 funds and 3 stars out of 95 funds for the 3-, 5- and 10- year periods, respectively.
Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2022 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|RAFI Bonds US Investment Grade 1-10 Index||-12.62||-12.69||-2.17||0.47||1.52||2.12|
|Bloomberg Barclays U.S. Corporate Index||-19.56||-19.57||-4.18||-0.32||1.47||2.38|
|Fund History (%)|
|After Tax Held||-13.50||-13.96||-3.47||-0.92||0.16||0.70|
|After Tax Sold||-7.55||-7.41||-2.15||-0.24||0.52||0.93|
|Fund Market Price||-12.65||-12.81||-2.36||0.23||1.25||1.79|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|RAFI Bonds US Investment Grade 1-10 Index||-12.27||-12.74||-1.84||0.60||1.63||2.17|
|Bloomberg Barclays U.S. Corporate Index||-18.72||-18.53||-3.65||-0.03||1.70||2.50|
|Fund History (%)|
|After Tax Held||-13.04||-13.96||-3.13||-0.79||0.27||0.75|
|After Tax Sold||-7.32||-7.42||-1.90||-0.15||0.60||0.97|
|Fund Market Price||-12.38||-12.88||-2.09||0.33||1.33||1.83|
Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.
Growth of $10,000
Data beginning Fund inception and ending 09/30/2022. Fund performance shown at NAV.
An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|Sector||Percent of Fund|
Quality Allocations† as of 12/01/2022
|AAA : 2%||Aaa : 3%|
|AA : 8%||Aa : 6%|
|A : 34%||A : 36%|
|BBB : 56%||Baa : 55%|
Cash is excluded from the credit rating quality allocations table.
|Years||% of Fund|
|0 - 1 years||4.33|
|1 - 5 years||46.17|
|5 - 10 years||48.61|
|10 - 15 years||0.89|
|15 - 20 years||0.00|
|20 - 25 years||0.00|
|25 years and over||0.00|
as of 12/01/2022 Top Fixed-Income Holdings | View All
|Holding Name||Coupon Rate||Maturity Date||Next Call Date||S&P / Moody's Rating†||Weight|
|JPMorgan Chase & Co||2.95%||10/01/2026||07/01/2026||A-/A1||1.18%|
|Bank of America Corp||3.30%||01/11/2023||N/A||A-/A2||0.82%|
|Cisco Systems Inc||2.50%||09/20/2026||06/20/2026||AA-/A1||0.65%|
|General Electric Co||6.75%||03/15/2032||N/A||BBB+/Baa1||0.59%|
|Wells Fargo & Co||3.00%||04/22/2026||N/A||BBB+/A1||0.56%|
|American International Group Inc||2.50%||06/30/2025||05/30/2025||BBB+/Baa2||0.55%|
Holdings are subject to change and are not buy/sell recommendations.
Risk & Other Information
† Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select "Understanding Ratings" under Rating Resources and moodys.com and select "Rating Methodologies" under Research and Ratings.
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 Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
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.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
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.
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 Fund may invest in privately issued securities, including 144A securities which are restricted (i.e. not publicly traded). The liquidity market for Rule 144A securities may vary, as a result, delay or difficulty in selling such securities may result in a loss to the Fund.
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 Barclays U.S. Corporate Index is an unmanaged index considered representative of fixed-rate, investment-grade taxable bond debt.
Fundamental Index®, Research Affiliates®, RAFI® and all other RA trademarks, trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC. The RAFI® Bonds US Investment Grade 1-10 Index is calculated and maintained by ALM Research Solutions, Inc. (a wholly owned subsidiary of Ryan ALM, Inc.) in conjunction with Research Affiliates, LLC and is the exclusive property of Research Affiliates.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.