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 08/31/2023 06/30/2023

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg US Corporate High Yield 2% Issuer Capped Total Return Index 7.15 7.19 1.81 3.31 4.47 0.62
Fund History (%)
Fund NAV 7.53 7.09 N/A N/A N/A 0.19
After Tax Held 5.52 4.15 N/A N/A N/A -2.00
After Tax Sold 4.42 4.12 N/A N/A N/A -0.77
Fund Market Price 7.91 7.37 N/A N/A N/A 0.17
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
Bloomberg US Corporate High Yield 2% Issuer Capped Total Return Index 5.38 9.07 3.12 3.34 4.43 0.01
Fund History (%)
Fund NAV 5.50 7.69 N/A N/A N/A -0.54
After Tax Held 4.04 4.86 N/A N/A N/A -2.66
After Tax Sold 3.24 4.49 N/A N/A N/A -1.28
Fund Market Price 6.03 7.97 N/A N/A N/A -0.49

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 06/30/2023

Growth of $10,000

Data beginning 10 years prior to the ending date of 06/30/2023. 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 09/29/2023

S&P Moody's
AAA : 0% Aaa : 0%
AA : 0% Aa : 0%
BBB : 1% Baa : 2%
BB : 61% Ba : 41%
B : 32% B : 49%
CCC : 5% Caa : 6%
Not Rated : 4% Not Rated : 5%

Cash is excluded from the credit rating quality allocations table.

as of 09/29/2023

Maturity

Years % of Fund
0 - 1 years 7.93
1 - 5 years 60.38
5 - 10 years 29.07
10 - 15 years 0.60
15 - 20 years 0.52
20 - 25 years 0.13
25 years and over 1.37

as of 09/29/2023 Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date Next Call Date S&P / Moody's Rating† Weight
CBOT 5 Year US Treasury Note N/A 12/29/2023 N/A NR/NR 5.24%
CBOT 10 Year US Treasury Note N/A 12/19/2023 N/A NR/NR 4.40%
Intercontinental Exchange Inc 5.00% 12/20/2027 N/A NR/NR 1.89%
Ultra 10-Year US Treasury Note Futures N/A 12/19/2023 N/A NR/NR 0.76%
Neptune Bidco US Inc 9.29% 04/15/2029 10/15/2025 B/B2 0.66%
AECOM 5.12% 03/15/2027 12/15/2026 BB-/Ba3 0.64%
MPT Operating Partnership LP / MPT Finance Corp 5.00% 10/15/2027 10/30/2023 BB+/Ba1 0.63%
CCO Holdings LLC / CCO Holdings Capital Corp 5.12% 05/01/2027 10/30/2023 BB-/B1 0.61%
TransDigm Inc 6.25% 03/15/2026 10/30/2023 B+/Ba3 0.61%
Allied Universal Holdco LLC / Allied Universal Finance Corp 6.62% 07/15/2026 10/30/2023 B/B3 0.56%

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

as of 09/29/2023 Summary Holdings | View All

Fund Holdings subject to change

Investment Long / Short % of Net Assets
Communication Services Long 9.78
Consumer Discretionary Long 19.02
Consumer Staples Long 2.06
Derivatives Long 10.67
Derivatives Short -5.50
Energy Long 11.43
Financials Long 10.35
Health Care Long 6.25
Industrials Long 12.24
Information Technology Long 5.36
Materials Long 7.72
Real Estate Long 3.92
Telecommunication Services Long 3.05
U.S. Government Securities Long 0.21
UnClassified Long 0.18
Utilities Long 3.26
Collateral Long / Short % of Net Assets
No holdings available

as of 09/29/2023 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 5 Year US Treasury Note 5.24
CBOT 10 Year US Treasury Note 4.40
Intercontinental Exchange Inc 1.89
Ford Motor Credit Co LLC 1.77
CHS/Community Health Systems Inc 1.30
OneMain Finance Corp 1.01
Standard Industries Inc/NJ 0.89
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc 0.87
MPT Operating Partnership LP / MPT Finance Corp 0.84
CCO Holdings LLC / CCO Holdings Capital Corp 0.81
Melco Resorts Finance Ltd 0.81
LCPR Senior Secured Financing DAC 0.80
Venture Global LNG Inc 0.80
Hilcorp Energy I LP / Hilcorp Finance Co 0.79
EQM Midstream Partners LP 0.78
CSC Holdings LLC 0.78
Nordstrom Inc 0.77
Icahn Enterprises LP / Icahn Enterprises Finance Corp 0.76
Ultra 10-Year US Treasury Note Futures 0.76
Crescent Energy Finance LLC 0.73
Resorts World Las Vegas LLC / RWLV Capital Inc 0.72
Seagate HDD Cayman 0.71
Altice France SA/France 0.69
Level 3 Financing Inc 0.69
Macy's Retail Holdings LLC 0.67
Neptune Bidco US Inc 0.66
AdaptHealth LLC 0.66
New Fortress Energy Inc 0.66
AECOM 0.64
DISH DBS Corp 0.63
TEGNA Inc 0.63
Service Properties Trust 0.63
TransDigm Inc 0.61
Las Vegas Sands Corp 0.61
Rockies Express Pipeline LLC 0.60
Chemours Co/The 0.57
Hughes Satellite Systems Corp 0.57
NRG Energy Inc 0.57
Allied Universal Holdco LLC / Allied Universal Finance Corp 0.56
Delta Air Lines Inc 0.55
Newell Brands Inc 0.55
Paramount Global 0.55
Summit Midstream Holdings LLC / Summit Midstream Finance Cor 0.54
Mineral Resources Ltd 0.54
Gap Inc/The 0.54
Comstock Resources Inc 0.54
United Wholesale Mortgage LLC 0.53
Aramark Services Inc 0.52
Howmet Aerospace Inc 0.52
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp 0.50
PRA Group Inc 0.50
Caesars Entertainment Inc 0.50
Bausch Health Cos Inc 0.50
American Airlines Inc/AAdvantage Loyalty IP Ltd 0.49
Directv Financing LLC / Directv Financing Co-Obligor Inc 0.48
Bombardier Inc 0.47
Rakuten Group Inc 0.47
Jaguar Land Rover Automotive PLC 0.47
Olympus Water US Holding Corp 0.47
SBA Communications Corp 0.46
Cinemark USA Inc 0.46
Telecom Italia SpA/Milano 0.45
ASG Finance Designated Activity Co 0.45
ams-OSRAM AG 0.45
Brookfield Property REIT Inc / BPR Cumulus LLC / BPR Nimbus 0.45
Tenet Healthcare Corp 0.45
Navient Corp 0.45
Drax Finco PLC 0.45
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal Packag 0.44
INEOS Finance PLC 0.44
Connect Finco SARL / Connect US Finco LLC 0.44
EnfraGen Energia Sur SA / EnfraGen Spain SA / Prime Energia 0.44
Synchrony Financial 0.44
Albion Financing 2SARL 0.43
JELD-WEN Inc 0.43
Goodyear Tire & Rubber Co/The 0.43
Sotheby's 0.43
Jazz Securities DAC 0.43
ZF North America Capital Inc 0.43
Freedom Mortgage Corp 0.42
IHO Verwaltungs GmbH 0.42
Performance Food Group Inc 0.42
Travel + Leisure Co 0.42
Xerox Holdings Corp 0.42
Cloud Software Group Inc 0.41
Office Properties Income Trust 0.41
Viasat Inc 0.40
Organon & Co / Organon Foreign Debt Co-Issuer BV 0.40
iHeartCommunications Inc 0.40
Pitney Bowes Inc 0.40
Rand Parent LLC 0.40
Sealed Air Corp 0.39
Premier Entertainment Sub LLC / Premier Entertainment Financ 0.39
C&S Group Enterprises LLC 0.39
Buckeye Partners LP 0.38
Algonquin Power & Utilities Corp 0.38
Bath & Body Works Inc 0.38
CommScope Inc 0.38
Cleveland-Cliffs Inc 0.38
Masonite International Corp 0.38
US Acute Care Solutions LLC 0.38
Altice Financing SA 0.37
Tenneco Inc 0.37
Midcap Financial Issuer Trust 0.37
Iron Mountain Inc 0.37
LGI Homes Inc 0.37
Affinity Interactive 0.37
WPX Energy Inc 0.36
Builders FirstSource Inc 0.36
VZ Secured Financing BV 0.36
Interface Inc 0.35
Prime Security Services Borrower LLC / Prime Finance Inc 0.35
Enerflex Ltd 0.35
Tempur Sealy International Inc 0.35
Abercrombie & Fitch Management Co 0.34
Avient Corp 0.34
NCL Corp Ltd 0.34
Open Text Holdings Inc 0.34
Likewize Corp 0.33
Staples Inc 0.33
DISH Network Corp 0.33
Veritas US Inc / Veritas Bermuda Ltd 0.33
Herbalife Nutrition Ltd / HLF Financing Inc 0.33
ACCO Brands Corp 0.32
Frontier North Inc 0.32
Imola Merger Corp 0.32
Scientific Games Holdings LP/Scientific Games US FinCo Inc 0.32
Parkland Corp 0.32
American Airlines Inc 0.32
EnLink Midstream Partners LP 0.32
Coinbase Global Inc 0.32
CoreCivic Inc 0.31
Baytex Energy Corp 0.31
MPH Acquisition Holdings LLC 0.31
Spirit AeroSystems Inc 0.31
Vistra Operations Co LLC 0.30
NuStar Logistics LP 0.30
MGM Resorts International 0.30
Ball Corp 0.29
Allegiant Travel Co 0.29
Global Atlantic Fin Co 0.28
Mauser Packaging Solutions Holding Co 0.28
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Alber 0.28
Realogy Group LLC / Realogy Co-Issuer Corp 0.27
Kohl's Corp 0.27
Caesars Resort Collection LLC / CRC Finco Inc 0.27
Vista Outdoor Inc 0.27
Ultra U.S. Treasury Bond Futures 0.27
PM General Purchaser LLC 0.27
WESCO Distribution Inc 0.26
Enviva Partners LP / Enviva Partners Finance Corp 0.26
Grand Canyon University 0.26
Methanex Corp 0.26
Wolverine World Wide Inc 0.26
Sabre GLBL Inc 0.26
Live Nation Entertainment Inc 0.26
AthenaHealth Group Inc 0.26
Life Time Inc 0.26
Specialty Building Products Holdings LLC / SBP Finance Corp 0.26
Windstream Escrow LLC / Windstream Escrow Finance Corp 0.26
Tri Pointe Homes Inc 0.25
Advantage Sales & Marketing Inc 0.25
Under Armour Inc 0.25
QVC Inc 0.25
Infrabuild Australia Pty Ltd 0.24
Rayonier AM Products Inc 0.24
Moss Creek Resources Holdings Inc 0.24
Vital Energy Inc 0.24
CVR Energy Inc 0.23
NFP Corp 0.23
LSF9 Atlantis Holdings LLC / Victra Finance Corp 0.23
Owens & Minor Inc 0.23
HUB International Ltd 0.23
Scripps Escrow II Inc 0.23
Domtar Corp 0.23
Varex Imaging Corp 0.23
Trinity Industries Inc 0.23
Sunnova Energy Corp 0.22
Churchill Downs Inc 0.22
Lumen Technologies Inc 0.22
ModivCare Inc 0.21
Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loy 0.21
Oceaneering International Inc 0.21
United States Treasury Bill 0.21
USA Compression Partners LP / USA Compression Finance Corp 0.21
Ally Financial Inc 0.21
Vector Group Ltd 0.21
Necessity Retail REIT Inc/The / American Finance Operating P 0.21
United Airlines Inc 0.20
G-III Apparel Group Ltd 0.20
Southwestern Energy Co 0.20
AG Issuer LLC 0.20
SunCoke Energy Inc 0.20
Kaiser Aluminum Corp 0.19
United Natural Foods Inc 0.19
NMI Holdings Inc 0.19
Harvest Midstream I LP 0.18
Ladder Capital Finance Holdings LLLP / Ladder Capital Financ 0.18
Brookfield Residential Properties Inc / Brookfield Residenti 0.18
1375209 BC Ltd 0.18
ITT Holdings LLC 0.18
Credit Acceptance Corp 0.18
Berry Global Inc 0.18
Alliant Holdings Intermediate LLC / Alliant Holdings Co-Issu 0.17
BlueLinx Holdings Inc 0.17
New Home Co Inc/The 0.17
RegionalCare Hospital Partners Holdings Inc / LifePoint Heal 0.17
Hanesbrands Inc 0.17
Taylor Morrison Communities Inc 0.17
Eco Material Technologies Inc 0.17
Fortress Transportation and Infrastructure Investors LLC 0.17
Qwest Corp 0.17
Murphy Oil Corp 0.17
Zayo Group Holdings Inc 0.17
Fortrea Holdings Inc 0.17
HAT Holdings I LLC / HAT Holdings II LLC 0.17
WR Grace Holdings LLC 0.17
HLF Financing Sarl LLC / Herbalife International Inc 0.16
Edison International 0.16
Prime Healthcare Services Inc 0.16
Northriver Midstream Finance LP 0.16
VistaJet Malta Finance PLC / Vista Management Holding Inc 0.16
Vail Resorts Inc 0.16
GrubHub Holdings Inc 0.16
Civitas Resources Inc 0.16
Shea Homes LP / Shea Homes Funding Corp 0.16
Crestwood Midstream Partners LP / Crestwood Midstream Financ 0.16
Ferrellgas LP / Ferrellgas Finance Corp 0.16
Camelot Return Merger Sub Inc 0.16
Cornerstone Building Brands Inc 0.16
Dana Inc 0.15
Michaels Cos Inc/The 0.15
AMC Networks Inc 0.15
Six Flags Theme Parks Inc 0.15
Videotron Ltd 0.15
Seaspan Corp 0.15
JPW Industries Holding Corp 0.15
Enviri Corp 0.15
CrownRock LP / CrownRock Finance Inc 0.14
Encino Acquisition Partners Holdings LLC 0.14
Titan International Inc 0.14
CoreLogic Inc 0.14
Xerox Corp 0.14
Evergreen Acqco 1 LP / TVI Inc 0.14
Elanco Animal Health Inc 0.14
McAfee Corp 0.13
Urban One Inc 0.13
Millennium Escrow Corp 0.13
Valaris Ltd 0.13
AmeriGas Partners LP / AmeriGas Finance Corp 0.13
Mohegan Tribal Gaming Authority 0.13
CD&R Smokey Buyer Inc 0.13
Blue Racer Midstream LLC / Blue Racer Finance Corp 0.13
Brightsphere Investment Group Inc 0.13
Sizzling Platter LLC / Sizzling Platter Finance Corp 0.12
Gen Digital Inc 0.12
Air Canada 0.12
Univision Communications Inc 0.11
Foot Locker Inc 0.11
Five Point Operating Co LP / Five Point Capital Corp 0.11
Cedar Fair LP / Canada's Wonderland Co / Magnum Management C 0.11
Sirius XM Radio Inc 0.11
CNX Resources Corp 0.11
Gannett Holdings LLC 0.10
Victoria's Secret & Co 0.10
Nabors Industries Inc 0.10
Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc 0.10
Photo Holdings Merger Sub Inc 0.10
Coty Inc 0.10
Consolidated Communications Inc 0.10
Intelligent Packaging Ltd Finco Inc / Intelligent Packaging 0.10
Midland Cogeneration Venture LP 0.10
Manitowoc Co Inc/The 0.09
Crown Americas LLC / Crown Americas Capital Corp VI 0.09
Trinseo Materials Operating SCA / Trinseo Materials Finance 0.09
Lions Gate Capital Holdings LLC 0.09
Cogent Communications Group Inc 0.09
Block Inc 0.09
CommScope Technologies LLC 0.09
Unisys Corp 0.09
Sonic Automotive Inc 0.09
Clarios Global LP / Clarios US Finance Co 0.09
Strathcona Resources Ltd/Alberta 0.08
PBF Holding Co LLC / PBF Finance Corp 0.08
Cumulus Media New Holdings Inc 0.06
Stericycle Inc 0.06
StoneX Group Inc 0.06
Liberty Interactive LLC 0.06
P&L Development LLC / PLD Finance Corp 0.06
TripAdvisor Inc 0.06
TreeHouse Foods Inc 0.05
Radiate Holdco LLC / Radiate Finance Inc 0.05
Ligado Networks LLC 0.04
Global Medical Response Inc 0.02
Endo Dac / Endo Finance LLC / Endo Finco Inc 0.01
Diamond Sports Group LLC / Diamond Sports Finance Co 0.01
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
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%
06/30/2023 62 29 18 2 0 0 0
03/31/2023 62 22 27 9 0 0 0
12/31/2022 63 36 19 4 0 0 0
09/30/2022 64 12 32 13 1 0 0
Year Ended 2022 251 106 89 23 1 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%
06/30/2023 62 13 0 0 0 0 0
03/31/2023 62 3 1 0 0 0 0
12/31/2022 63 2 2 0 0 0 0
09/30/2022 64 5 1 0 0 0 0
Year Ended 2022 251 29 3 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.

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%.