Fixed Income | US Fixed Income

Invesco Municipal Strategic Income ETF

Ticker: IMSI

Product Details

Invesco Municipal Strategic Income ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks current income exempt from federal income tax. The Fund seeks its investment objective by investing at least 80% of its net assets in municipal securities exempt from federal income taxes and in other instruments that have similar economic characteristics. The Fund will normally maintain a weighted average portfolio duration of less than 7.5 years.

as of 04/30/2024 03/31/2024

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
S&P Municipal Bond 50% Investment Grade / 50% High Yield Total Return Index (USD) 0.03 4.21 -0.67 1.98 N/A 4.25
S&P Municipal Bond High Yield Total Return Index (USD) 1.34 6.59 -0.15 2.92 4.40 5.78
Fund History (%)
Fund NAV 1.18 5.16 N/A N/A N/A 5.00
After Tax Held 0.60 4.51 N/A N/A N/A 4.52
After Tax Sold 0.70 4.13 N/A N/A N/A 4.29
Fund Market Price 1.16 5.01 N/A N/A N/A 4.73
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
S&P Municipal Bond 50% Investment Grade / 50% High Yield Total Return Index (USD) 1.15 5.55 0.05 2.29 N/A 5.42
S&P Municipal Bond High Yield Total Return Index (USD) 2.50 8.57 0.65 3.26 4.64 7.09
Fund History (%)
Fund NAV 1.74 6.12 N/A N/A N/A 5.76
After Tax Held 1.29 5.61 N/A N/A N/A 5.36
After Tax Sold 1.03 4.84 N/A N/A N/A 4.94
Fund Market Price 1.76 6.00 N/A N/A N/A 5.51

This is a new Fund and has no full-year Fund performance to report as of most recent quarter end.

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. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.

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 The results assume that no cash was added to or assets withdrawn from the Index.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.

as of 03/31/2024

Growth of $10,000

Data beginning Fund inception and ending 03/31/2024. Fund performance shown at NAV.

The ICE BofAML US Taxable Municipal Securities Plus Index* performance prior to 5/31/2017 reflects that of the original Underlying Index ICE BofAML Build America Bond Index. From 5/31/2017, forward, the Index performance reflects that of the Underlying Index ICE BofAML Taxable Municipal Securities Plus 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.

Quality Allocations as of 05/20/2024

S&P Moody's
AA : 11% Aa : 4%
A : 17% A : 24%
BBB : 9% Baa : 22%
BB : 17% Ba : 3%
B : 0% B : 2%
Not Rated : 46% Not Rated : 45%

Cash is excluded from the credit rating quality allocations table.

as of 05/20/2024

Maturity

Years % of Fund
0 - 1 years 3.08
1 - 5 years 12.09
5 - 10 years 21.33
10 - 15 years 29.29
15 - 20 years 10.86
20 - 25 years 7.79
25 years and over 15.57

as of 05/20/2024 Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date Next Call Date S&P / Moody's Rating† Weight
New York Transportation Development Corp 6.00% 04/01/2035 04/01/2031 BB+/Baa3 3.76%
California Community Choice Financing Authority 5.00% 12/01/2053 05/01/2029 NR/A2 3.49%
Virginia Beach Development Authority 5.38% 09/01/2029 09/01/2026 NR/NR 3.42%
Public Finance Authority 5.50% 12/15/2028 06/01/2025 NR/NR 3.30%
Lee Memorial Health System 4.00% 04/01/2037 04/01/2029 A+/A2 3.26%
Port of Portland OR Airport Revenue 5.25% 07/01/2039 07/01/2033 AA-/NR 2.59%
Metropolitan Transportation Authority 5.00% 11/15/2037 11/15/2026 A-/A3 2.52%
Pennsylvania Economic Development Financing Authority 5.50% 06/30/2038 12/31/2032 NR/Baa2 1.86%
Allentown Neighborhood Improvement Zone Development Authorit 5.00% 05/01/2033 05/01/2032 NR/Baa3 1.83%
California Pollution Control Financing Authority 5.00% 07/01/2038 07/01/2033 NR/Baa3 1.79%

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

Distributions | Hide View All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital Liquidation Distribution
05/20/2024 05/21/2024 05/24/2024 0.16911 0.16911 - - - -
04/22/2024 04/23/2024 04/26/0204 0.17044 0.17044 - - - -
03/18/2024 03/19/2024 03/22/2024 0.18244 0.18244 - - - -
02/20/2024 02/21/2024 02/23/2024 0.18220 0.18220 - - - -
01/22/2024 01/23/2024 01/26/2024 0.18185 0.18185 - - - -
12/18/2023 12/19/2023 12/22/2023 0.17855 0.17855 - - - -
11/20/2023 11/21/2023 11/24/2023 0.16258 0.16258 - - - -
10/23/2023 10/24/2023 10/27/2023 0.16552 0.16552 - - - -
09/18/2023 09/19/2023 09/22/2023 0.16963 0.16963 - - - -
08/21/2023 08/22/2023 08/25/2023 0.17168 0.17168 - - - -
07/24/2023 07/25/2023 07/28/0203 0.17169 0.17169 - - - -
06/20/2023 06/21/2023 06/23/2023 0.17048 0.17048 - - - -
05/22/2023 05/23/2023 05/26/2023 0.17160 0.17160 - - - -
04/24/2023 04/25/2023 04/28/2023 0.17153 0.17153 - - - -
03/20/2023 03/21/2023 03/24/2023 0.16826 0.16826 - - - -
02/21/2023 02/22/2023 02/24/2023 0.17387 0.17387 - - - -
01/23/2023 01/24/2023 01/27/2023 0.17023 0.17023 - - - -

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%
03/31/2024 61 45 4 0 0 0 0
12/31/2023 63 42 6 0 0 0 0
09/30/2023 63 39 3 0 0 0 0
06/30/2023 62 35 1 0 0 0 0
Year Ended 2023 250 155 13 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%
03/31/2024 61 12 0 0 0 0 0
12/31/2023 63 14 1 0 0 0 0
09/30/2023 63 21 0 0 0 0 0
06/30/2023 62 25 1 0 0 0 0
Year Ended 2023 250 80 2 0 0 0 0

Fund Inception : 12/09/2022

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

† 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. 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.

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

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 values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

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 may invest in municipal securities issued by entities having similar characteristics, which may make the Fund more susceptible to fluctuation.

The Fund invests in obligations, exempt from regular federal individual income taxes, of the governments of U.S. territories, commonwealths and possessions such as Puerto Rico, the U.S. Virgin Islands, Guam and the Northern Mariana Islands. As result, the Fund may be adversely affected by local political, economic, social and environmental conditions and developments, including natural disasters affecting such obligations. Certain municipalities the Fund invests in, such as Puerto Rico, have significant financial difficulties, including risk of default, insolvency or bankruptcy; and may be subject to credit rating downgrades affecting the payment of principal and interest, the market values and marketability of such municipal obligations.

Securities which are in the medium- and lower-grade categories generally offer higher yields than are offered by higher-grade securities of similar maturity, but they also generally involve more volatility and greater risks, such as greater credit, market, liquidity, management, and regulatory risks.

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.

Inverse floating rate obligations may be subject to greater price volatility than a fixed income security with similar qualities. When short-term interest rates rise, they may decrease in value and produce less or no income and are subject to risks similar to derivatives.

A portion of the Fund’s otherwise tax-exempt income may be subject to the federal alternative minimum tax.

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.

Based on a Master Settlement Agreement (“MSA”) with 46 states and six other US jurisdictions, large US tobacco manufacturers have agreed to make annual payments to government entities in exchange for the release of all litigation claims. Several states have sold bonds backed by those future payments, including (i) bonds that make payments only from a state’s interest in the MSA and (ii) bonds that make payments from both the MSA revenue and from an “appropriation pledge” by the state which requires the state to pass a specific periodic appropriation to make the payments and is generally not an unconditional guarantee of payment by a state. Settlement payments are based on factors, including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. Payments could be reduced if consumption decreases, if market share is lost to non-MSA manufacturers, or if there is a negative outcome in litigation regarding the MSA, including challenges by participating tobacco manufacturers regarding the amount of annual payments owed under the MSA.

The Fund is non-diversified and may experience greater volatility than a more diversified investment.

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.

The S&P Municipal Bond 50% Investment Grade/50% High Yield is a custom index, created by Invesco as the fund's benchmark, and is composed of the following indexes: S&P Municipal Bond Investment Grade Index (50%) and S&P Municipal Bond High Yield Index (50%). 

S&P Municipal Bond High-Yield Index consists of bonds in the S&P Municipal Bond Index that are not rated or are rated below investment grade.