Fixed Income | US Fixed Income

Invesco High Yield Bond Factor ETF

Ticker: IHYF

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.

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

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg US Corporate High Yield 2% Issuer Capped Total Return Index 0.52 9.01 1.50 3.70 4.28 2.35
Fund History (%)
Fund NAV 0.69 9.50 1.14 N/A N/A 2.00
After Tax Held -0.31 6.30 -1.33 N/A N/A -0.37
After Tax Sold 0.41 5.53 -0.20 N/A N/A 0.50
Fund Market Price 0.01 8.92 0.94 N/A N/A 1.81
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg US Corporate High Yield 2% Issuer Capped Total Return Index 1.47 11.15 2.19 4.19 4.44 2.70
Fund History (%)
Fund NAV 1.78 11.93 1.85 N/A N/A 2.38
After Tax Held 1.03 8.70 -0.61 N/A N/A 0.02
After Tax Sold 1.05 6.95 0.33 N/A N/A 0.78
Fund Market Price 1.78 11.69 1.86 N/A N/A 2.40

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 10 years prior to the ending date of 03/31/2024. 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.

as of 07/08/2021

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 05/17/2024

S&P Moody's
AAA : 0% Aaa : 0%
AA : 0% Aa : 0%
BBB : 2% Baa : 2%
BB : 59% Ba : 40%
B : 31% B : 45%
CCC : 6% Caa : 7%
CC : 0% Ca : 0%
Not Rated : 3% Not Rated : 5%

Cash is excluded from the credit rating quality allocations table.

as of 05/17/2024

Maturity

Years % of Fund
0 - 1 years 2.68
1 - 5 years 67.20
5 - 10 years 26.83
10 - 15 years 0.78
15 - 20 years 0.47
20 - 25 years 0.00
25 years and over 2.04

as of 05/17/2024 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 06/18/2024 N/A NR/NR 3.29%
CBOT 5 Year US Treasury Note N/A 06/28/2024 N/A NR/NR 2.59%
Churchill Downs Inc 5.50% 04/01/2027 06/17/2024 B+/B1 0.93%
Jazz Securities DAC 4.38% 01/15/2029 07/15/2024 BB-/Ba2 0.77%
USA Compression Partners LP / USA Compression Finance Corp 6.88% 09/01/2027 06/17/2024 B+/B2 0.77%
INEOS Finance PLC 6.75% 05/15/2028 02/15/2025 BB/Ba3 0.75%
Cargo Aircraft Management Inc 4.75% 02/01/2028 06/03/2024 BB/Ba2 0.75%
AMN Healthcare Inc 4.00% 04/15/2029 05/28/2024 BB-/Ba3 0.75%
Arches Buyer Inc 4.25% 06/01/2028 06/17/2024 B/B1 0.74%
Embecta Corp 5.00% 02/15/2030 02/15/2027 B+/Ba3 0.74%

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

as of 05/17/2024 Summary Holdings | View All

Fund Holdings subject to change

Investment Long / Short % of Net Assets
Communication Services Long 9.75
Consumer Discretionary Long 19.82
Consumer Staples Long 1.30
Derivatives Long 6.12
Derivatives Short -5.19
Energy Long 11.60
Financials Long 9.07
Health Care Long 6.49
Industrials Long 12.98
Information Technology Long 5.94
Materials Long 8.74
Real Estate Long 5.29
Telecommunication Services Long 3.40
U.S. Government Securities Long 0.13
UnClassified Long 0.43
Utilities Long 4.15
Collateral Long / Short % of Net Assets
No holdings available

as of 05/17/2024 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 3.29
CBOT 5 Year US Treasury Note 2.59
CCO Holdings LLC / CCO Holdings Capital Corp 2.07
Venture Global LNG Inc 1.90
CSC Holdings LLC 1.46
Icahn Enterprises LP / Icahn Enterprises Finance Corp 1.10
Navient Corp 1.10
Mineral Resources Ltd 0.97
CHS/Community Health Systems Inc 0.97
Churchill Downs Inc 0.93
Rockies Express Pipeline LLC 0.89
Standard Industries Inc/NJ 0.88
Rakuten Group Inc 0.85
Newell Brands Inc 0.83
Gap Inc/The 0.83
Sirius XM Radio Inc 0.81
NextEra Energy Operating Partners LP 0.81
AdaptHealth LLC 0.81
New Fortress Energy Inc 0.80
Viasat Inc 0.79
Xerox Holdings Corp 0.78
Jazz Securities DAC 0.77
USA Compression Partners LP / USA Compression Finance Corp 0.77
INEOS Finance PLC 0.75
Cargo Aircraft Management Inc 0.75
AMN Healthcare Inc 0.75
Arches Buyer Inc 0.74
Embecta Corp 0.74
MPT Operating Partnership LP / MPT Finance Corp 0.73
Victoria's Secret & Co 0.73
Melco Resorts Finance Ltd 0.72
Nordstrom Inc 0.72
Covanta Holding Corp 0.71
Smyrna Ready Mix Concrete LLC 0.70
Midcap Financial Issuer Trust 0.70
Mueller Water Products Inc 0.70
Consolidated Energy Finance SA 0.69
Nabors Industries Inc 0.68
Videotron Ltd 0.68
LCPR Senior Secured Financing DAC 0.68
Cushman & Wakefield US Borrower LLC 0.67
Resorts World Las Vegas LLC / RWLV Capital Inc 0.67
JELD-WEN Inc 0.66
Tenneco Inc 0.63
DISH DBS Corp 0.63
OneMain Finance Corp 0.62
Western Digital Corp 0.62
PRA Group Inc 0.62
AmeriGas Partners LP / AmeriGas Finance Corp 0.62
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp 0.62
Tempur Sealy International Inc 0.58
Algonquin Power & Utilities Corp 0.57
Global Atlantic Fin Co 0.57
Vistra Operations Co LLC 0.56
MPH Acquisition Holdings LLC 0.56
Neptune Bidco US Inc 0.56
Rand Parent LLC 0.56
AECOM 0.55
Freedom Mortgage Corp 0.55
Paramount Global 0.52
LifePoint Health Inc 0.50
Adtalem Global Education Inc 0.50
Altice France SA 0.50
Delek Logistics Partners LP / Delek Logistics Finance Corp 0.50
Chemours Co/The 0.50
Spirit AeroSystems Inc 0.49
Hilcorp Energy I LP / Hilcorp Finance Co 0.48
Comstock Resources Inc 0.48
CoreCivic Inc 0.48
Antero Midstream Partners LP / Antero Midstream Finance Corp 0.47
United Wholesale Mortgage LLC 0.47
StoneX Group Inc 0.47
Summit Midstream Holdings LLC / Summit Midstream Finance Cor 0.46
Newmark Group Inc 0.46
Marriott Ownership Resorts Inc 0.46
Conduent Business Services LLC / Conduent State & Local Solu 0.44
PetSmart Inc / PetSmart Finance Corp 0.44
Encompass Health Corp 0.44
United Rentals North America Inc 0.44
Directv Financing LLC / Directv Financing Co-Obligor Inc 0.43
AthenaHealth Group Inc 0.43
Brandywine Operating Partnership LP 0.43
Mallinckrodt International Finance SA / Mallinckrodt CB LLC 0.42
Taylor Morrison Communities Inc 0.42
eG Global Finance PLC 0.41
HAT Holdings I LLC / HAT Holdings II LLC 0.41
SS&C Technologies Inc 0.41
Dana Inc 0.41
NESCO Holdings II Inc 0.41
Nexstar Media Inc 0.41
Pitney Bowes Inc 0.41
MIWD Holdco II LLC / MIWD Finance Corp 0.40
Harvest Midstream I LP 0.40
Sealed Air Corp 0.40
CD&R Smokey Buyer Inc 0.40
CEC Entertainment LLC 0.40
SBA Communications Corp 0.40
Amer Sports Co 0.40
Brookfield Property REIT Inc / BPR Cumulus LLC / BPR Nimbus 0.40
Warrior Met Coal Inc 0.40
Directv Financing LLC 0.39
Anywhere Real Estate Group LLC / Anywhere Co-Issuer Corp 0.39
Perenti Finance Pty Ltd 0.39
International Game Technology PLC 0.39
Jaguar Land Rover Automotive PLC 0.38
Edison International 0.38
Iliad Holding SASU 0.38
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal Packag 0.38
Algoma Steel Inc 0.38
Herc Holdings Inc 0.38
Albion Financing 1 SARL / Aggreko Holdings Inc 0.37
Mohegan Tribal Gaming Authority 0.37
Connect Finco SARL / Connect US Finco LLC 0.37
MGM Resorts International 0.37
EnerSys 0.37
Talen Energy Supply LLC 0.36
Sotheby's 0.36
Travel + Leisure Co 0.36
Enerflex Ltd 0.36
LABL Inc 0.35
Jefferies Finance LLC / JFIN Co-Issuer Corp 0.35
Organon & Co / Organon Foreign Debt Co-Issuer BV 0.35
EquipmentShare.com Inc 0.35
Mattamy Group Corp 0.35
LGI Homes Inc 0.33
NCR Atleos Corp 0.33
Affinity Interactive 0.33
C&S Group Enterprises LLC 0.33
Crescent Energy Finance LLC 0.33
Crown Americas LLC / Crown Americas Capital Corp V 0.32
Resideo Funding Inc 0.32
Staples Inc 0.32
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc 0.32
Premier Entertainment Sub LLC / Premier Entertainment Financ 0.32
WPX Energy Inc 0.31
Hunt Cos Inc 0.31
CrownRock LP / CrownRock Finance Inc 0.30
ams-OSRAM AG 0.30
American Airlines Inc/AAdvantage Loyalty IP Ltd 0.30
Veritas US Inc / Veritas Bermuda Ltd 0.30
Freedom Mortgage Holdings LLC 0.30
Atkore Inc 0.29
ACCO Brands Corp 0.29
Genworth Holdings Inc 0.29
Abercrombie & Fitch Management Co 0.29
Frontier North Inc 0.28
QVC Inc 0.28
Avient Corp 0.28
TEGNA Inc 0.28
Goodyear Tire & Rubber Co/The 0.27
Titan International Inc 0.27
GFL Environmental Inc 0.26
Service Properties Trust 0.26
DISH Network Corp 0.26
Talos Production Inc 0.26
FirstEnergy Corp 0.26
NuStar Logistics LP 0.26
Windstream Escrow LLC / Windstream Escrow Finance Corp 0.26
Scripps Escrow II Inc 0.25
HUB International Ltd 0.25
Belo Corp 0.25
Allegiant Travel Co 0.25
Global Net Lease Inc / Global Net Lease Operating Partnershi 0.25
Hillenbrand Inc 0.25
Bausch Health Cos Inc 0.25
Wolverine World Wide Inc 0.24
Office Properties Income Trust 0.24
Bread Financial Holdings Inc 0.24
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Alber 0.24
Ultra U.S. Treasury Bond Futures 0.23
McAfee Corp 0.23
Prime Security Services Borrower LLC / Prime Finance Inc 0.23
Tri Pointe Homes Inc 0.22
WESCO Distribution Inc 0.22
Life Time Inc 0.22
Cinemark USA Inc 0.22
Under Armour Inc 0.22
Specialty Building Products Holdings LLC / SBP Finance Corp 0.22
Grand Canyon University 0.22
Advantage Sales & Marketing Inc 0.21
Mauser Packaging Solutions Holding Co 0.21
Victra Holdings LLC / Victra Finance Corp 0.21
Brand Industrial Services Inc 0.21
Edgewell Personal Care Co 0.21
ANGI Group LLC 0.20
EQM Midstream Partners LP 0.20
Domtar Corp 0.20
Gen Digital Inc 0.20
Necessity Retail REIT Inc/The / American Finance Operating P 0.19
Vector Group Ltd 0.19
Gray Television Inc 0.19
Cloud Software Group Inc 0.18
Royal Caribbean Cruises Ltd 0.18
Compass Minerals International Inc 0.18
Kaiser Aluminum Corp 0.18
Verde Purchaser LLC 0.18
Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loy 0.18
Ally Financial Inc 0.18
Macy's Retail Holdings LLC 0.18
Iron Mountain Inc 0.18
Seagate HDD Cayman 0.18
SunCoke Energy Inc 0.17
United Airlines Inc 0.17
CommScope Inc 0.17
G-III Apparel Group Ltd 0.17
Boeing Co/The 0.17
Hanesbrands Inc 0.17
Brookfield Residential Properties Inc / Brookfield Residenti 0.16
NRG Energy Inc 0.16
ITT Holdings LLC 0.16
ModivCare Escrow Issuer Inc 0.16
WR Grace Holdings LLC 0.16
GrubHub Holdings Inc 0.16
Walgreens Boots Alliance Inc 0.16
Camelot Return Merger Sub Inc 0.15
Ladder Capital Finance Holdings LLLP / Ladder Capital Financ 0.15
Berry Global Inc 0.15
Eco Material Technologies Inc 0.15
GN Bondco LLC 0.15
Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issu 0.15
1375209 BC Ltd 0.15
RegionalCare Hospital Partners Holdings Inc / LifePoint Heal 0.15
Zayo Group Holdings Inc 0.14
Kohl's Corp 0.14
Live Nation Entertainment Inc 0.14
Herbalife Nutrition Ltd / HLF Financing Inc 0.14
Prime Healthcare Services Inc 0.14
Civitas Resources Inc 0.14
Arsenal AIC Parent LLC 0.14
Seaspan Corp 0.14
Northriver Midstream Finance LP 0.14
Baytex Energy Corp 0.13
Bath & Body Works Inc 0.13
Enviri Corp 0.13
Iron Mountain Information Management Services Inc 0.13
Buckeye Partners LP 0.13
Michaels Cos Inc/The 0.13
Adams Homes Inc 0.13
Six Flags Theme Parks Inc 0.13
Open Text Holdings Inc 0.13
United States Treasury Bill 0.13
Xerox Corp 0.12
iHeartCommunications Inc 0.12
Valaris Ltd 0.11
Brightsphere Investment Group Inc 0.11
Sabre GLBL Inc 0.11
Air Canada 0.11
Sizzling Platter LLC / Sizzling Platter Finance Corp 0.10
Foot Locker Inc 0.10
Urban One Inc 0.10
Five Point Operating Co LP / Five Point Capital Corp 0.10
Hess Midstream Operations LP 0.10
Gannett Holdings LLC 0.09
CNX Resources Corp 0.09
Consolidated Communications Inc 0.09
Sealed Air Corp/Sealed Air Corp US 0.09
Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc 0.09
Lions Gate Capital Holdings LLC 0.08
Liberty Interactive LLC 0.08
Unisys Corp 0.08
Crown Americas LLC / Crown Americas Capital Corp VI 0.08
Block Inc 0.08
Cogent Communications Group Inc 0.08
Sonic Automotive Inc 0.08
Strathcona Resources Ltd/Alberta 0.07
PBF Holding Co LLC / PBF Finance Corp 0.07
P&L Development LLC / PLD Finance Corp 0.05
TripAdvisor Inc 0.05
Cumulus Media New Holdings Inc 0.04
Coty Inc 0.04
Radiate Holdco LLC / Radiate Finance Inc 0.04
Global Medical Response Inc 0.02
Endo Inc -
Midland Cogeneration Venture LP -
Ultra 10-Year US Treasury Note Futures -
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.

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 | 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 0.12349 0.12349 - - - -
04/22/2024 04/23/2024 04/26/0204 0.14094 0.14094 - - - -
03/18/2024 03/19/2024 03/22/2024 0.13594 0.13594 - - - -
02/20/2024 02/21/2024 02/23/2024 0.13118 0.13118 - - - -
01/22/2024 01/23/2024 01/26/2024 0.13468 0.13468 - - - -
12/18/2023 12/19/2023 12/22/2023 0.13575 0.13575 - - - -
11/20/2023 11/21/2023 11/24/2023 0.12968 0.12968 - - - -
10/23/2023 10/24/2023 10/27/2023 0.12825 0.12825 - - - -
09/18/2023 09/19/2023 09/22/2023 0.12687 0.12687 - - - -
08/21/2023 08/22/2023 08/25/2023 0.13037 0.13037 - - - -
07/24/2023 07/25/2023 07/28/0203 0.12919 0.12919 - - - -
06/20/2023 06/21/2023 06/23/2023 0.12469 0.12469 - - - -
05/22/2023 05/23/2023 05/26/2023 0.12938 0.12938 - - - -
04/24/2023 04/25/2023 04/28/2023 0.12166 0.12166 - - - -
03/20/2023 03/21/2023 03/24/2023 0.12665 0.12665 - - - -
02/21/2023 02/22/2023 02/24/2023 0.10860 0.10860 - - - -
01/23/2023 01/24/2023 01/27/2023 0.12180 0.12180 - - - -
12/19/2022 12/20/2022 12/23/2022 0.13956 0.13956 - - - -
11/21/2022 11/22/2022 11/25/2022 0.11434 0.11434 - - - -
10/24/2022 10/25/2022 10/28/2022 0.11986 0.11986 - - - -
09/19/2022 09/20/2022 09/23/2022 0.11410 0.11410 - - - -
08/22/2022 08/23/2022 08/26/2022 0.11491 0.11491 - - - -
07/18/2022 07/19/2022 07/22/2022 0.10872 0.10872 - - - -
06/21/2022 06/22/2022 06/30/2022 0.10431 0.10431 - - - -
05/23/2022 05/24/2022 05/31/2022 0.10589 0.10589 - - - -
04/18/2022 04/19/2022 04/29/2022 0.09790 0.09790 - - - -
03/21/2022 03/22/2022 03/31/2022 0.09836 0.09836 - - - -
02/22/2022 02/23/2022 02/28/2022 0.08549 0.08549 - - - -
01/24/2022 01/25/2022 01/31/2022 0.09338 0.09338 - - - -
12/20/2021 12/21/2021 12/31/2021 0.19859 0.08816 0.11043 - - -
11/22/2021 11/23/2021 11/30/2021 0.08935 0.08935 - - - -
10/18/2021 10/19/2021 10/29/2021 0.09371 0.09371 - - - -
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 - - - -

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 11 22 0 0 0 0
12/31/2023 63 5 53 5 0 0 0
09/30/2023 63 9 54 0 0 0 0
06/30/2023 62 29 18 2 0 0 0
Year Ended 2023 250 65 152 16 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 16 0 0 0 0
12/31/2023 63 0 0 0 0 0 0
09/30/2023 63 0 0 0 0 0 0
06/30/2023 62 13 0 0 0 0 0
Year Ended 2023 250 16 1 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.

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.

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

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.

Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

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 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%.