The Invesco Fundamental High Yield® Corporate Bond ETF (Fund) is based on the RAFI® Bonds US High Yield 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 high yield 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.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|RAFI Bonds US High Yield 1-10 Index||3.18||5.10||1.25||3.20||3.73||N/A|
|Bloomberg US Corporate High Yield Total Return Index||4.63||6.23||1.19||3.05||3.86||6.01|
|Fund History (%)|
|After Tax Held||1.43||3.00||-0.73||0.87||1.15||0.91|
|After Tax Sold||1.80||2.90||-0.01||1.23||1.45||1.35|
|Fund Market Price||2.86||5.09||0.79||2.54||2.93||2.86|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|RAFI Bonds US High Yield 1-10 Index||3.81||8.43||1.49||3.06||4.03||N/A|
|Bloomberg US Corporate High Yield Total Return Index||5.86||10.28||1.76||2.96||4.24||6.12|
|Fund History (%)|
|After Tax Held||2.21||6.26||-0.52||0.73||1.45||0.97|
|After Tax Sold||2.15||4.81||0.14||1.11||1.68||1.39|
|Fund Market Price||3.21||8.28||0.98||2.33||3.24||2.90|
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 10 years prior to the ending date of 09/30/2023. Fund performance shown at NAV.
RAFI Bonds US High Yield 1-10 Index* performance prior to 8/2/2010 reflects that of the original Underlying Index, Wells Fargo® High Yield Bond Index. From 8/2/2010 forward, performance reflects that of the Underlying Index, RAFI Bonds US High Yield 1-10 Index AND IS NOT INTENDED FOR ANY THIRD PARTY USE.
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 12/05/2023
|BBB : 18%||Baa : 13%|
|BB : 70%||Ba : 58%|
|B : 11%||B : 24%|
|Not Rated : 1%||Not Rated : 5%|
|Years||% of Fund|
|0 - 1 years||1.71|
|1 - 5 years||54.14|
|5 - 10 years||44.16|
|10 - 15 years||0.00|
|15 - 20 years||0.00|
|20 - 25 years||0.00|
|25 years and over||0.00|
as of 12/05/2023 Top Fixed-Income Holdings | View All
|Holding Name||Coupon Rate||Maturity Date||Next Call Date||S&P / Moody's Rating†||Weight|
|United Airlines Holdings Inc||4.88%||01/15/2025||N/A||BB-/Ba3||1.83%|
|Ford Motor Co||3.25%||02/12/2032||11/12/2031||BBB-/Ba1||1.80%|
|Ford Motor Credit Co LLC||3.38%||11/13/2025||10/13/2025||BBB-/Ba1||1.75%|
|CCO Holdings LLC / CCO Holdings Capital Corp||4.75%||03/01/2030||09/01/2024||BB-/B1||1.53%|
|Western Digital Corp||4.75%||02/15/2026||11/15/2025||BB-/Ba2||1.50%|
|Charter Communications Operating LLC / Charter Communication||4.91%||07/23/2025||04/23/2025||BBB-/Ba1||1.48%|
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 values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
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.
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.
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.
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 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.
The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.
The Wells Fargo High Yield Bond Index is comprised of US dollar-denominated bonds registered for sale in the United States whose issuers are public companies listed on major US stock exchanges. The Barclays US Corporate High Yield Index covers the US dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
Fundamental Index®, Research Affiliates®, Fundamental High Yield® and all other RA trademarks, trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC. RAFI® Bonds US High Yield 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.
Preliminary NAIC Designation Disclosure:
Preliminary NAIC Designations are the intellectual property of the National Association of Insurance Commissioners (NAIC) and are redistributed here under License. A Preliminary NAIC Designation is an opinion of the NAIC Securities Valuation Office (SVO) of the probable credit quality designation that would be assigned by the SVO to an investment if purchased by an insurance company and reported to the SVO. A Preliminary NAIC Designation is only one of the regulatory factors considered by the SVO as part of its analysis of probable regulatory treatment under the Regulatory Treatment Analysis Service (RTAS). A full discussion of such other regulatory factors is set forth in the RTAS Letter provided to Invesco. A Preliminary NAIC Designation cannot be used to report the ETF to state insurance regulators. However, the purchasing insurance company may obtain an NAIC Designation for the ETF by filing the security and final documents for the ETF with the SVO. The indication of probable regulatory treatment indicated by a Preliminary NAIC Designation is not a recommendation to purchase the ETF and is not intended to convey approval or endorsement of the ETF Sponsor or the ETF by the NAIC.
NAIC Designation Disclosure:
NAIC Designations are the intellectual property of the National Association of Insurance Commissioners (NAIC) and are redistributed here under License. An NAIC Designation is a proprietary symbol used by the NAIC Securities Valuation Office (SVO) to denote a category or band of credit risk (i.e., the likelihood of repayment in accordance with a written contract) for an issuer or for a security. NAIC Designations may be notched up or down to reflect the position of a specific liability in the issuer’s capital structure and/or the existence of other non-payment risk in the specific security. Under NAIC reporting rules, shares of an ETF are presumed to be reportable as common stock. The SVO may classify an ETF as a bond or preferred stock and assign it an NAIC Designation if it meets defined criteria. For a discussion of these criteria please call the SVO or refer to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. The assignment of an NAIC Designation is not a recommendation to purchase the ETF and is not intended to convey approval or endorsement of the ETF Sponsor or the ETF by the NAIC.