Fixed Income | US Fixed Income

Invesco Variable Rate Investment Grade ETF

Ticker: VRIG
How to invest

Product Details

The Invesco Variable Rate Investment Grade ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks to generate current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective. Under normal market conditions, the Fund generally will invest at least 80% of its net assets, plus any borrowings, in a portfolio of investment-grade, variable rate instruments that are US dollar denominated and US issued. Invesco, Advisers, Inc., the sub-adviser to the Fund (Sub-Adviser), seeks to invest in floating rate US Treasuries, government sponsored agency mortgage-backed securities, US Agency debt, structured securities and floating rate investment grade corporates. The Fund is able to invest in other types of securities as outlined in the prospectus, including up to 20% in non-investment grade securities.

as of 09/30/2022

Morningstar Rating

Overall Rating - Ultrashort Bond Category

As of 09/30/2022 the Fund had an overall rating of 5 stars out of 216 funds and was rated 5 stars out of 216 funds, 5 stars out of 178 funds and N/A stars out of N/A funds for the 3-, 5- and 10- year periods, respectively.

Morningstar details

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.

as of 10/31/2022 09/30/2022

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg Barclays US Floating Rate Note Index 0.36 0.29 0.92 1.68 1.47 1.79
Fund History (%)
Fund NAV -0.42 -0.45 0.97 1.56 N/A 1.83
After Tax Held -1.03 -1.12 0.39 0.73 N/A 0.97
After Tax Sold -0.25 -0.27 0.50 0.84 N/A 1.03
Fund Market Price -0.50 -0.53 0.94 1.54 N/A 1.80
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg Barclays US Floating Rate Note Index 0.24 0.17 0.99 1.71 1.49 1.80
Fund History (%)
Fund NAV -0.38 -0.40 1.10 1.64 N/A 1.87
After Tax Held -0.85 -0.94 0.54 0.82 N/A 1.01
After Tax Sold -0.23 -0.24 0.60 0.90 N/A 1.06
Fund Market Price -0.62 -0.68 1.04 1.56 N/A 1.80

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.

as of 09/30/2022

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.

Quality Allocations as of 11/28/2022

Rating % of Fund
AAA 23.39
AA+ 2.65
AA 2.91
AA- 12.91
A+ 8.48
A 15.69
A- 12.81
BBB+ 6.11
BBB 5.57
BBB- 7.45
BB 0.33
NR 1.71

Cash is excluded from the credit rating quality allocations table.

as of 11/28/2022

Maturity

Years % of Fund
0 - 1 years 15.94
1 - 5 years 48.49
5 - 10 years 2.13
10 - 15 years 10.29
15 - 20 years 17.76
20 - 25 years 0.72
25 years and over 4.67

as of 11/28/2022 Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date Next Call Date Quality Rating Weight
United States Treasury Floating Rate Note 4.26% 04/30/2024 N/A AAA 11.27%
United States Treasury Floating Rate Note 4.37% 07/31/2024 N/A AAA 3.15%
American Express Co 5.39% 02/27/2023 01/27/2023 A 0.92%
Freddie Mac STACR REMIC Trust 2021-DNA6 5.05% 10/25/2041 10/25/2026 BBB- 0.92%
Invesco Government & Agency Portfolio N/A N/A 0.91%
ING Groep NV 4.74% 10/02/2023 N/A A+ 0.89%
QUALCOMM Inc 5.14% 01/30/2023 N/A A 0.88%
Athene Global Funding 4.52% 05/24/2024 N/A A+ 0.87%
NextEra Energy Capital Holdings Inc 4.42% 03/21/2024 12/29/2022 A- 0.86%
STAR 2022-SFR3 Trust 5.82% 05/17/2024 N/A AA- 0.86%

Holdings are subject to change and are not buy/sell recommendations.

The characterizations of distributions reflected in this table are as of the date noted below. The actual amounts of income, capital gains and return of capital for tax purposes are only determined after the Fund’s fiscal year end, and may differ from the amounts and characterizations reflected in the chart below. Please refer to the Tax Center for the most current and/or final characterizations of these distributions, including any distributions characterized as return of capital.

Distributions | HideView All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital Liquidation Distribution
11/21/2022 11/22/2022 11/25/2022 0.09110 0.09110 - - - -
10/24/2022 10/25/2022 10/28/2022 0.09110 0.09110 - - - -
09/19/2022 09/20/2022 09/23/2022 0.07125 0.07125 - - - -
08/22/2022 08/23/2022 08/26/2022 0.05602 0.05602 - - - -
07/18/2022 07/19/2022 07/22/2022 0.04197 0.04197 - - - -
06/21/2022 06/22/2022 06/30/2022 0.03068 0.03068 - - - -
05/23/2022 05/24/2022 05/31/2022 0.02419 0.02419 - - - -
04/18/2022 04/19/2022 04/29/2022 0.01975 0.01975 - - - -
03/21/2022 03/22/2022 03/31/2022 0.01354 0.01354 - - - -
02/22/2022 02/23/2022 02/28/2022 0.01334 0.01334 - - - -
01/24/2022 01/25/2022 01/31/2022 0.01387 0.01387 - - - -
12/20/2021 12/21/2021 12/31/2021 0.01443 0.01443 - - - -
11/22/2021 11/23/2021 11/30/2021 0.01493 0.01493 - - - -
10/18/2021 10/19/2021 10/29/2021 0.01499 0.01499 - - - -
09/20/2021 09/21/2021 09/30/2021 0.01453 0.01453 - - - -
08/23/2021 08/24/2021 08/31/2021 0.01433 0.01433 - - - -
07/19/2021 07/20/2021 07/30/2021 0.01477 0.01477 - - - -
06/21/2021 06/22/2021 06/30/2021 0.01615 0.01615 - - - -
05/24/2021 05/25/2021 05/28/2021 0.01787 0.01787 - - - -
04/19/2021 04/20/2021 04/30/2021 0.01736 0.01736 - - - -
03/22/2021 03/23/2021 03/31/2021 0.01744 0.01744 - - - -
02/22/2021 02/23/2021 02/26/2021 0.01855 0.01855 - - - -
01/19/2021 01/20/2021 01/29/2021 0.01915 0.01915 - - - -
12/21/2020 12/22/2020 12/31/2020 0.01825 0.01825 - - - -
11/23/2020 11/24/2020 11/30/2020 0.01919 0.01919 - - - -
10/19/2020 10/20/2020 10/30/2020 0.01537 0.01537 - - - -
09/21/2020 09/22/2020 09/30/2020 0.01732 0.01732 - - - -
08/24/2020 08/25/2020 08/31/2020 0.01825 0.01825 - - - -
07/20/2020 07/21/2020 07/31/2020 0.02401 0.02401 - - - -
06/22/2020 06/23/2020 06/30/2020 0.02801 0.02801 - - - -
05/18/2020 05/19/2020 05/29/2020 0.03999 0.03999 - - - -
04/20/2020 04/21/2020 04/30/2020 0.05168 0.05168 - - - -
03/23/2020 03/24/2020 03/31/2020 0.05331 0.05331 - - - -
02/24/2020 02/25/2020 02/28/2020 0.05317 0.05317 - - - -
01/21/2020 01/22/2020 01/31/2020 0.05365 0.05365 - - - -
12/23/2019 12/24/2019 12/31/2019 0.06408 0.06408 - - - -
11/18/2019 11/19/2019 11/29/2019 0.05457 0.05457 - - - -
10/21/2019 10/22/2019 10/31/2019 0.05856 0.05856 - - - -
09/23/2019 09/24/2019 09/30/2019 0.06271 0.06271 - - - -
08/19/2019 08/20/2019 08/30/2019 0.06360 0.06360 - - - -
07/22/2019 07/23/2019 07/31/2019 0.06406 0.06406 - - - -
06/24/2019 06/25/2019 06/28/2019 0.06731 0.06731 - - - -
05/20/2019 05/21/2019 05/31/2019 0.06950 0.06950 - - - -
04/22/2019 04/23/2019 04/30/2019 0.06942 0.06942 - - - -
03/18/2019 03/19/2019 03/29/2019 0.06846 0.06846 - - - -
02/19/2019 02/20/2019 02/28/2019 0.06864 - - - - -
01/22/2019 01/23/2019 01/31/2019 0.06906 0.06906 - - - -
12/24/2018 12/26/2018 12/31/2018 0.07029 0.07029 - - - -
11/19/2018 11/20/2018 11/30/2018 0.06485 0.06485 - - - -
10/22/2018 10/23/2018 10/31/2018 0.06437 0.06437 - - - -
09/24/2018 09/25/2018 09/28/2018 0.06201 0.06201 - - - -
08/20/2018 08/21/2018 08/31/2018 0.06176 0.06176 - - - -
07/23/2018 07/24/2018 07/31/2018 0.06217 0.06217 - - - -
06/18/2018 06/19/2018 06/29/2018 0.05961 0.05961 - - - -
05/21/2018 05/22/2018 05/31/2018 0.05794 0.05794 - - - -
04/23/2018 04/24/2018 04/30/2018 0.05596 0.05596 - - - -
03/19/2018 03/20/2018 03/29/2018 0.05250 0.05250 - - - -
02/20/2018 02/21/2018 02/28/2018 0.05035 0.05035 - - - -
01/22/2018 01/23/2018 01/31/2018 0.04894 0.04894 - - - -
12/18/2017 12/19/2017 12/29/2017 0.05500 0.05500 - - - -
11/20/2017 11/21/2017 11/30/2017 0.04807 0.04807 - - - -
10/23/2017 10/24/2017 10/31/2017 0.04602 0.04602 - - - -
09/18/2017 09/19/2017 09/29/2017 0.04700 0.04700 - - - -
08/15/2017 08/17/2017 08/31/2017 0.04709 0.04709 - - - -
07/14/2017 07/18/2017 07/31/2017 0.04599 0.04599 - - - -
06/15/2017 06/19/2017 06/30/2017 0.04733 0.04733 - - - -
05/15/2017 05/17/2017 05/31/2017 0.05049 0.05049 - - - -
04/13/2017 04/18/2017 04/28/2017 0.05156 0.05156 - - - -
03/15/2017 03/17/2017 03/31/2017 0.04871 0.04871 - - - -
02/15/2017 02/17/2017 02/28/2017 0.04831 0.04831 - - - -
01/13/2017 01/18/2017 01/31/2017 0.04788 0.04788 - - - -
12/15/2016 12/19/2016 12/30/2016 0.05242 0.05242 - - - -
11/15/2016 11/17/2016 11/30/2016 0.04200 0.04200 - - - -
10/14/2016 10/18/2016 10/31/2016 0.05482 0.05482 - - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
09/30/2022 64 31 0 0 0 0 0
06/30/2022 62 36 0 0 0 0 0
03/31/2022 62 53 0 0 0 0 0
12/31/2021 64 45 0 0 0 0 0
Year Ended 2021 252 186 0 0 0 0 0
    Bid/Ask Midpoint Below NAV
Quarter
Ending
Days 0.00-
0.25%
0.26-
0.50%
0.51-
0.99%
1.00-
1.49%
1.50-
1.99%
≥2.00%
09/30/2022 64 33 0 0 0 0 0
06/30/2022 62 23 0 2 1 0 0
03/31/2022 62 9 0 0 0 0 0
12/31/2021 64 19 0 0 0 0 0
Year Ended 2021 252 66 0 0 0 0 0

Fund Inception : 09/22/2016

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.

Premiums/Discounts

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.

 Risk & Other Information

† Ratings are based on S&P, Moody's or Fitch, as applicable. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. NR indicates the debtor was not rated, and should not be interpreted as indicating low quality. If securities are rated differently by the rating agencies, the higher rating is applied. Credit ratings are based largely on the rating agency's investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer's current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security's market value or of the liquidity of an investment in the security. For more information on the rating methodology, please visit the following NRSRO websites: standardandpoors.com and select 'Understanding Ratings' under Rating Resources on the home page; moodys.com and select 'Rating Methodologies' under Research and Ratings on the home page; fitchratings.com and select 'Ratings Definitions' on the home page.

There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. 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 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.

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 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 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.

Defaulted securities involve the substantial risk that principal will not be repaid and may be subject to restrictions on resale.

The Fund invests in financial instruments that use the London Interbank Offered Rate (“LIBOR”) as a reference or benchmark rate for variable interest rate calculations. LIBOR will be phased out by the end of 2021, and it's anticipated that LIBOR will cease to be published after that time. The uncertainty on the effects of the LIBOR transition process, therefore any impact of the LIBOR transition on the Fund or its investments cannot yet be determined. There is no assurance an alternative rate will be similar to, produce the same value or economic equivalence or instruments using the rate will have the same volume or liquidity as LIBOR. Any effects of LIBOR transition and the adoption of alternative rates could result in losses to the Fund.

Because the Fund may invest in ETFs and other investment companies, it's subject to the risks associated with the ETFs and investment company and its investment performance may depend on the underlying investment company's performance. The Fund will indirectly pay a proportional share of the investment company's fees and expenses, while continuing to pay its own management fee to the Adviser, resulting in shareholders absorbing duplicate levels of fees.

For mortgage-backed securities, if interest rates rise, borrowers may prepay mortgages more slowly than originally expected. This may further reduce market value and lengthen durations.

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.

Income generated from the Fund is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the Fund's income may drop as well.

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.

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 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 Bloomberg Barclays US Floating Rate Note Index measures the performance of US dollar-denominated, investment grade floating rate notes.