Product Details
The Invesco High Yield Bond Factor ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks total return by investing, at least 80% of its net assets in high-yield, below-investment grade, fixed-income securities, and in derivatives and other instruments that have economic characteristics similar to such securities. The Fund utilizes a factor-based strategy that seeks to outperform the Fund’s market-weighted benchmark index by systematically targeting securities in the benchmark index exhibiting quantifiable issuer characteristics (or “factors”) that the investment team believes will have higher returns than other fixed income securities with comparable characteristics over market cycles.
Performance
| Index History (%) | YTD | 1Yr | 3Yr | 5Yr | 10Yr | Since Inception |
|---|---|---|---|---|---|---|
| Bloomberg US Corporate High Yield 2% Issuer Capped Total Return Index | 4.55 | 10.14 | 7.09 | 6.65 | 7.06 | 6.15 |
| Fund History (%) | ||||||
| Fund NAV | 4.00 | N/A | N/A | N/A | N/A | 5.58 |
| After Tax Held | 2.74 | N/A | N/A | N/A | N/A | 4.30 |
| After Tax Sold | 2.35 | N/A | N/A | N/A | N/A | 3.29 |
| Fund Market Price | 3.91 | N/A | N/A | N/A | N/A | 5.64 |
| Index History (%) | YTD | 1Yr | 3Yr | 5Yr | 10Yr | Since Inception |
|---|---|---|---|---|---|---|
| Bloomberg Barclays US Corporate High Yield 2% Issuer Capped Index | 3.61 | 15.34 | 7.42 | 7.47 | 6.65 | 5.20 |
| Fund History (%) | ||||||
| Fund NAV | 3.35 | N/A | N/A | N/A | N/A | 4.92 |
| After Tax Held | 2.41 | N/A | N/A | N/A | N/A | 3.97 |
| After Tax Sold | 1.97 | N/A | N/A | N/A | N/A | 2.90 |
| Fund Market Price | 3.18 | N/A | N/A | N/A | N/A | 4.91 |
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.
Sector Allocation
| Sector | Percent of Fund |
|---|---|
| Consumer Discretionary | 17.30% |
| Energy | 13.29% |
| Communication Services | 12.23% |
| Industrials | 10.64% |
| Financials | 8.31% |
| Materials | 7.28% |
| Health Care | 7.20% |
| Derivatives | 5.29% |
| Real Estate | 5.11% |
| Information Technology | 4.86% |
| Consumer Staples | 3.95% |
| Utilities | 3.22% |
| Telecommunication Services | 1.15% |
| U.S. Government Securities | 0.16% |
Market Cap & Style Allocations
| Large-Cap Value | 100.00% |
| Large-Cap Blend | - |
| Large-Cap Growth | - |
| Mid-Cap Value | - |
| Mid-Cap Blend | - |
| Mid-Cap Growth | - |
| Small-Cap Value | - |
| Small-Cap Blend | - |
| Small-Cap Growth | - |
Quality Allocations† as of 09/24/2021
| S&P | Moody's |
|---|---|
| AAA : 0% | Aaa : 0% |
| AA : 0% | Aa : 0% |
| BBB : 3% | Baa : 4% |
| BB : 67% | Ba : 52% |
| B : 31% | B : 42% |
| CCC : 3% | Caa : 3% |
| Not Rated : 3% | Not Rated : 5% |
Cash is excluded from the credit rating quality allocations table.
Maturity
| Years | % of Fund |
|---|---|
| 0 - 1 years | 5.45 |
| 1 - 5 years | 54.58 |
| 5 - 10 years | 34.87 |
| 10 - 15 years | 1.56 |
| 15 - 20 years | 1.43 |
| 20 - 25 years | 1.15 |
| 25 years and over | 0.96 |
as of 09/24/2021 Top Fixed-Income Holdings | View All
| Holding Name | Coupon Rate | Maturity Date | Next Call Date | S&P / Moody's Rating† | Weight |
|---|---|---|---|---|---|
| CBOT 10 Year US Treasury Note | N/A | 12/21/2021 | N/A | NR/NR | 4.58% |
| Ultra 10-Year US Treasury Note Futures | N/A | 12/21/2021 | N/A | NR/NR | 4.06% |
| CBOT 5 Year US Treasury Note | N/A | 12/31/2021 | N/A | NR/NR | 1.42% |
| Occidental Petroleum Corp | 8.88% | 07/15/2030 | 01/15/2030 | BB/Ba2 | 1.05% |
| Uniti Group LP / Uniti Fiber Holdings Inc / CSL Capital LLC | 7.88% | 02/15/2025 | 02/15/2022 | B/B2 | 0.73% |
| Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp | 5.50% | 03/01/2025 | 12/01/2024 | BB-/B1 | 0.69% |
| GFL Environmental Inc | 4.25% | 06/01/2025 | 06/01/2022 | BB-/Ba3 | 0.64% |
| Cleveland-Cliffs Inc | 6.75% | 03/15/2026 | 03/15/2022 | BB-/Ba2 | 0.63% |
| Sprint Corp | 7.12% | 06/15/2024 | N/A | BB+/Ba2 | 0.62% |
| Staples Inc | 7.50% | 04/15/2026 | 04/15/2022 | B/B2 | 0.62% |
Holdings are subject to change and are not buy/sell recommendations.
as of 09/24/2021 Summary Holdings | View All
Fund Holdings subject to change
| Investment | Long / Short | % of Net Assets |
|---|---|---|
| Communication Services | Long | 12.23 |
| Consumer Discretionary | Long | 17.30 |
| Consumer Staples | Long | 3.95 |
| Derivatives | Long | 10.89 |
| Derivatives | Short | -5.60 |
| Energy | Long | 13.29 |
| Financials | Long | 8.31 |
| Health Care | Long | 7.20 |
| Industrials | Long | 10.64 |
| Information Technology | Long | 4.86 |
| Materials | Long | 7.28 |
| Real Estate | Long | 5.11 |
| Telecommunication Services | Long | 1.15 |
| U.S. Government Securities | Long | 0.16 |
| Utilities | Long | 3.22 |
| Collateral | Long / Short | % of Net Assets |
| No holdings available | ||
as of 09/24/2021 Holdings | View All
Fund Holdings subject to change
| Futures | % of Net Assets |
|---|---|
| No holdings available | |
| Swaps | % of Net Assets |
| No holdings available | |
| Collateral | % of Net Assets |
|---|---|
| CBOT 10 Year US Treasury Note | 4.58 |
| Ultra 10-Year US Treasury Note Futures | 4.06 |
| Sprint Corp | 1.78 |
| Bausch Health Cos Inc | 1.57 |
| CBOT 5 Year US Treasury Note | 1.42 |
| Occidental Petroleum Corp | 1.34 |
| Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp | 1.15 |
| Navient Corp | 1.12 |
| Travel + Leisure Co | 1.10 |
| Lumen Technologies Inc | 1.02 |
| Service Properties Trust | 1.00 |
| Ford Motor Credit Co LLC | 0.99 |
| Melco Resorts Finance Ltd | 0.95 |
| Methanex Corp | 0.86 |
| Murphy Oil Corp | 0.82 |
| Iron Mountain Inc | 0.78 |
| PBF Holding Co LLC / PBF Finance Corp | 0.77 |
| Genesis Energy LP / Genesis Energy Finance Corp | 0.77 |
| Cleveland-Cliffs Inc | 0.75 |
| Ford Motor Co | 0.74 |
| Tenet Healthcare Corp | 0.74 |
| Uniti Group LP / Uniti Fiber Holdings Inc / CSL Capital LLC | 0.73 |
| Carnival Corp | 0.70 |
| Telesat Canada / Telesat LLC | 0.69 |
| GFL Environmental Inc | 0.64 |
| AMC Networks Inc | 0.64 |
| OneMain Finance Corp | 0.64 |
| Nordstrom Inc | 0.63 |
| Staples Inc | 0.62 |
| DIRECTV Holdings LLC / DIRECTV Financing Co Inc | 0.62 |
| Liberty Interactive LLC | 0.62 |
| Herbalife Nutrition Ltd / HLF Financing Inc | 0.62 |
| EnfraGen Energia Sur SA / EnfraGen Spain SA / Prime Energia | 0.62 |
| EnLink Midstream Partners LP | 0.62 |
| CoreCivic Inc | 0.60 |
| Delta Air Lines Inc | 0.60 |
| Xerox Holdings Corp | 0.59 |
| Sensata Technologies BV | 0.58 |
| Royal Caribbean Cruises Ltd | 0.58 |
| MGM Growth Properties Operating Partnership LP / MGP Finance | 0.57 |
| PDC Energy Inc | 0.56 |
| CVR Energy Inc | 0.56 |
| SBA Communications Corp | 0.55 |
| Embarq Corp | 0.54 |
| Audacy Capital Corp | 0.54 |
| Imola Merger Corp | 0.53 |
| Global Aircraft Leasing Co Ltd | 0.53 |
| Commerzbank AG | 0.52 |
| Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp | 0.52 |
| International Game Technology PLC | 0.52 |
| HCA Inc | 0.51 |
| UniCredit SpA | 0.51 |
| Rolls-Royce PLC | 0.51 |
| CSC Holdings LLC | 0.51 |
| IHO Verwaltungs GmbH | 0.50 |
| Intesa Sanpaolo SpA | 0.50 |
| Telecom Italia SpA/Milano | 0.50 |
| C&S Group Enterprises LLC | 0.49 |
| Telenet Finance Luxembourg Notes Sarl | 0.49 |
| Connect Finco SARL / Connect US Finco LLC | 0.48 |
| Fluor Corp | 0.48 |
| Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc | 0.48 |
| Endo Luxembourg Finance Co I Sarl / Endo US Inc | 0.48 |
| Midcap Financial Issuer Trust | 0.48 |
| Tenneco Inc | 0.48 |
| Windstream Escrow LLC / Windstream Escrow Finance Corp | 0.48 |
| SRM Escrow Issuer LLC | 0.48 |
| Drax Finco PLC | 0.48 |
| Banijay Entertainment SASU | 0.48 |
| Neptune Energy Bondco PLC | 0.48 |
| OCI NV | 0.48 |
| EnLink Midstream LLC | 0.48 |
| Oriflame Investment Holding PLC | 0.48 |
| Warrior Met Coal Inc | 0.48 |
| US Acute Care Solutions LLC | 0.47 |
| AG Issuer LLC | 0.47 |
| LGI Homes Inc | 0.47 |
| Vmed O2 UK Financing I PLC | 0.47 |
| Western Midstream Operating LP | 0.47 |
| Aramark Services Inc | 0.46 |
| ASG Finance Designated Activity Co | 0.46 |
| InterGen NV | 0.46 |
| MPH Acquisition Holdings LLC | 0.46 |
| Affinity Gaming | 0.46 |
| CME Ultra Long Term US Treasury Bond Future | 0.45 |
| Vail Resorts Inc | 0.45 |
| North Queensland Export Terminal Pty Ltd | 0.45 |
| Stericycle Inc | 0.44 |
| Open Text Corp | 0.44 |
| DISH DBS Corp | 0.44 |
| Southwestern Energy Co | 0.44 |
| ArcelorMittal SA | 0.43 |
| Carpenter Technology Corp | 0.43 |
| Par Pharmaceutical Inc | 0.43 |
| Pilgrim's Pride Corp | 0.42 |
| Macy's Retail Holdings LLC | 0.42 |
| JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc | 0.41 |
| MGM Resorts International | 0.41 |
| Veritas US Inc / Veritas Bermuda Ltd | 0.41 |
| WPX Energy Inc | 0.41 |
| NCL Corp Ltd | 0.41 |
| Spirit AeroSystems Inc | 0.40 |
| ACCO Brands Corp | 0.40 |
| Howard Hughes Corp/The | 0.39 |
| Icahn Enterprises LP / Icahn Enterprises Finance Corp | 0.39 |
| NextEra Energy Operating Partners LP | 0.39 |
| Talen Energy Supply LLC | 0.39 |
| TripAdvisor Inc | 0.38 |
| Ball Corp | 0.38 |
| FMG Resources August 2006 Pty Ltd | 0.38 |
| Xerox Corp | 0.38 |
| Encino Acquisition Partners Holdings LLC | 0.38 |
| Freeport-McMoRan Inc | 0.38 |
| Magellan Health Inc | 0.38 |
| Standard Industries Inc/NJ | 0.37 |
| Pitney Bowes Inc | 0.37 |
| VOC Escrow Ltd | 0.37 |
| CBOT US Long Bond Future | 0.37 |
| VICI Properties LP / VICI Note Co Inc | 0.37 |
| Continental Resources Inc/OK | 0.37 |
| Abercrombie & Fitch Management Co | 0.37 |
| AerCap Holdings NV | 0.37 |
| Summit Materials LLC / Summit Materials Finance Corp | 0.36 |
| EQT Corp | 0.36 |
| Cinemark USA Inc | 0.36 |
| AdaptHealth LLC | 0.36 |
| Ziggo BV | 0.36 |
| NortonLifeLock Inc | 0.35 |
| Brightstar Escrow Corp | 0.35 |
| P&L Development LLC / PLD Finance Corp | 0.35 |
| Hanesbrands Inc | 0.35 |
| NOVA Chemicals Corp | 0.35 |
| Akumin Inc | 0.35 |
| Avon Products Inc | 0.35 |
| Oceaneering International Inc | 0.35 |
| PRA Group Inc | 0.35 |
| iStar Inc | 0.34 |
| New Enterprise Stone & Lime Co Inc | 0.34 |
| TRI Pointe Group Inc / TRI Pointe Homes Inc | 0.34 |
| Vermilion Energy Inc | 0.34 |
| Endeavor Energy Resources LP / EER Finance Inc | 0.34 |
| Winnebago Industries Inc | 0.33 |
| Triumph Group Inc | 0.33 |
| Kraft Heinz Foods Co | 0.33 |
| FirstEnergy Transmission LLC | 0.33 |
| Sabre GLBL Inc | 0.32 |
| Plantronics Inc | 0.32 |
| TEGNA Inc | 0.32 |
| Howmet Aerospace Inc | 0.31 |
| goeasy Ltd | 0.31 |
| AmeriGas Partners LP / AmeriGas Finance Corp | 0.31 |
| EMC Corp | 0.31 |
| Seagate HDD Cayman | 0.30 |
| PM General Purchaser LLC | 0.30 |
| Calumet Specialty Products Partners LP / Calumet Finance Cor | 0.30 |
| CNX Resources Corp | 0.29 |
| Prime Security Services Borrower LLC / Prime Finance Inc | 0.29 |
| SunCoke Energy Inc | 0.29 |
| Specialty Building Products Holdings LLC / SBP Finance Corp | 0.29 |
| Videotron Ltd | 0.29 |
| MEDNAX Inc | 0.29 |
| Dell International LLC / EMC Corp | 0.28 |
| Advantage Sales & Marketing Inc | 0.28 |
| CrownRock LP / CrownRock Finance Inc | 0.28 |
| EQM Midstream Partners LP | 0.28 |
| Varex Imaging Corp | 0.28 |
| QVC Inc | 0.27 |
| New Residential Investment Corp | 0.27 |
| Global Medical Response Inc | 0.27 |
| FXI Holdings Inc | 0.27 |
| LSF9 Atlantis Holdings LLC / Victra Finance Corp | 0.27 |
| Buckeye Partners LP | 0.27 |
| Midland Cogeneration Venture LP | 0.26 |
| Bombardier Inc | 0.25 |
| Infrabuild Australia Pty Ltd | 0.25 |
| Vector Group Ltd | 0.25 |
| Trinity Industries Inc | 0.25 |
| Southeast Supply Header LLC | 0.24 |
| Netflix Inc | 0.23 |
| Bed Bath & Beyond Inc | 0.23 |
| CDW LLC / CDW Finance Corp | 0.23 |
| G-III Apparel Group Ltd | 0.22 |
| Diversified Healthcare Trust | 0.22 |
| Hilton Grand Vacations Borrower LLC / Hilton Grand Vacations | 0.22 |
| Mineral Resources Ltd | 0.22 |
| NMI Holdings Inc | 0.21 |
| MEG Energy Corp | 0.21 |
| Qwest Corp | 0.21 |
| Dell Inc | 0.21 |
| Provident Financing Trust I | 0.21 |
| Harvest Midstream I LP | 0.21 |
| New Home Co Inc/The | 0.20 |
| Garda World Security Corp | 0.19 |
| Owens & Minor Inc | 0.19 |
| Berry Global Inc | 0.19 |
| TriMas Corp | 0.19 |
| Ladder Capital Finance Holdings LLLP / Ladder Capital Financ | 0.19 |
| Talos Production Inc | 0.19 |
| Credit Acceptance Corp | 0.19 |
| Emergent BioSolutions Inc | 0.19 |
| Sinclair Television Group Inc | 0.19 |
| Altera Infrastructure LP/Teekay Offshore Finance Corp | 0.19 |
| Clearwater Paper Corp | 0.19 |
| Graphic Packaging International LLC | 0.19 |
| Amsted Industries Inc | 0.19 |
| Cumulus Media New Holdings Inc | 0.18 |
| Baytex Energy Corp | 0.17 |
| Patterson-UTI Energy Inc | 0.17 |
| CNG Holdings Inc | 0.17 |
| Urban One Inc | 0.17 |
| CIT Group Inc | 0.17 |
| United States Treasury Bill | 0.16 |
| Brookfield Property REIT Inc / BPR Cumulus LLC / BPR Nimbus | 0.16 |
| Enstar Finance LLC | 0.16 |
| JPW Industries Holding Corp | 0.16 |
| Diamond Sports Group LLC / Diamond Sports Finance Co | 0.15 |
| Starwood Property Trust Inc | 0.15 |
| Dycom Industries Inc | 0.15 |
| CHS/Community Health Systems Inc | 0.14 |
| TransDigm Inc | 0.14 |
| WW International Inc | 0.14 |
| Rite Aid Corp | 0.14 |
| Mauser Packaging Solutions Holding Co | 0.14 |
| Weatherford International Ltd | 0.13 |
| Sizzling Platter LLC / Sizzling Platter Finance Corp | 0.12 |
| Radian Group Inc | 0.12 |
| Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issu | 0.12 |
| Ritchie Bros Auctioneers Inc | 0.12 |
| Caesars Entertainment Inc | 0.11 |
| FS Energy and Power Fund | 0.11 |
| Caesars Resort Collection LLC / CRC Finco Inc | 0.11 |
| iHeartCommunications Inc | 0.11 |
| AAG FH LP / AAG FH Finco Inc | 0.10 |
| Manitowoc Co Inc/The | 0.10 |
| Michael Baker International LLC | 0.10 |
| Radiate Holdco LLC / Radiate Finance Inc | 0.10 |
| T-Mobile USA Inc | 0.09 |
| Michaels Cos Inc/The | 0.09 |
| CommScope Technologies LLC | 0.09 |
| American Airlines Inc/AAdvantage Loyalty IP Ltd | 0.09 |
| Clarios Global LP / Clarios US Finance Co | 0.09 |
| Change Healthcare Holdings LLC / Change Healthcare Finance I | 0.08 |
| American Airlines 2014-1 Class A Pass Through Trust | 0.08 |
| Intercontinental Exchange Inc | 0.07 |
| Ligado Networks LLC | 0.07 |
| StoneX Group Inc | 0.06 |
| RegionalCare Hospital Partners Holdings Inc / LifePoint Heal | 0.06 |
| HUB International Ltd | 0.06 |
| NFP Corp | 0.06 |
| Endo Dac / Endo Finance LLC / Endo Finco Inc | 0.06 |
| MGIC Investment Corp | 0.05 |
| Banff Merger Sub Inc | 0.05 |
| CVR Partners LP / CVR Nitrogen Finance Corp | 0.04 |
| Genworth Holdings Inc | 0.04 |
| CBOT 2 Year US Treasury Note Future | - |
A negative in Cash or Other, as of the date shown, is normally due to fund activity that has accrued or is pending settlement.
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 |
|---|---|---|---|---|---|---|---|---|
| 09/20/2021 | 09/21/2021 | 09/30/2021 | 0.09211 | 0.09211 | - | - | - | - |
| 08/23/2021 | 08/24/2021 | 08/31/2021 | 0.09434 | 0.09434 | - | - | - | - |
| 07/19/2021 | 07/20/2021 | 07/30/2021 | 0.09477 | 0.09477 | - | - | - | - |
| 06/21/2021 | 06/22/2021 | 06/30/2021 | 0.09387 | 0.09387 | - | - | - | - |
| 05/24/2021 | 05/25/2021 | 05/28/2021 | 0.09508 | 0.09508 | - | - | - | - |
| 04/19/2021 | 04/20/2021 | 04/30/2021 | 0.08624 | 0.08624 | - | - | - | - |
| 03/22/2021 | 03/23/2021 | 03/31/2021 | 0.10074 | 0.10074 | - | - | - | - |
| 02/22/2021 | 02/23/2021 | 02/26/2021 | 0.09456 | 0.09456 | - | - | - | - |
| 01/19/2021 | 01/20/2021 | 01/29/2021 | 0.10139 | 0.10139 | - | - | - | - |
Distribution Information
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% |
| 06/30/2021 | 63 | 13 | 47 | 3 | 0 | 0 | 0 |
| 03/31/2021 | 61 | 18 | 38 | 4 | 0 | 0 | 0 |
| 12/31/2020 | 21 | 3 | 18 | 0 | 0 | 0 | 0 |
| Year Ended 2020 | 21 | 3 | 18 | 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% |
| 06/30/2021 | 63 | 0 | 0 | 0 | 0 | 0 | 0 |
| 03/31/2021 | 61 | 1 | 0 | 0 | 0 | 0 | 0 |
| 12/31/2020 | 21 | 0 | 0 | 0 | 0 | 0 | 0 |
| Year Ended 2020 | 21 | 0 | 0 | 0 | 0 | 0 | 0 |
Fund Inception : 12/02/2020
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.
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.
Fund Documents
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.
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.
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.
Active trading results in added expenses and may result in a lower return and increased tax liability.
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 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.
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.
Investing in restricted 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 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.
Factor investing is an investment strategy in which securities are chosen based on certain characteristics and attributes that may explain differences in returns. Factor investing represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, both in active or passive vehicles. There can be no assurance that performance will be enhanced or risk will be reduced for strategies that seek to provide exposure to certain factors. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Factor investing may underperform cap-weighted benchmarks and increase portfolio risk. There is no assurance that the investment strategies discussed in this material will achieve their investment objectives.
Bloomberg Barclays US Corp High Yield 2% Issuer Capped Index is an unmanaged index considered representative of the US high-yield, fixed-rate corporate bond market. Index weights for each issuer are capped at 2%.
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