The Invesco Financial Preferred ETF (Fund) is based on the Wells Fargo® Hybrid and Preferred Securities Financial Index (WHPSF Index). The Fund generally will invest at least 90% of its total assets in preferred securities of financial institutions that comprise the Index. The Index is a market capitalization weighted index designed to track the performance of preferred securities traded in the US market by financial institutions. The Index is composed of preferred securities with either fixed or floating rate dividends issued by financial institutions that have received an industrial sector classification of "financial" from the Bloomberg Professional Service. The Fund and the Index are rebalanced and reconstituted monthly.
Morningstar Rating ™Overall Rating - Preferred Stock Category
As of 07/31/2020 the Fund had an overall rating of 5 stars out of 56 funds and was rated 5 stars out of 56 funds, 5 stars out of 45 funds and 4 stars out of 23 funds for the 3-, 5- and 10- year periods, respectively.
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. ©2020 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.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|Wells Fargo Hybrid and Preferred Securities Financial Index||2.07||5.29||5.14||6.26||7.49||5.32|
|S&P U.S. Preferred Stock Index||-0.54||3.42||3.89||4.88||6.22||4.89|
|Fund History (%)|
|After Tax Held||0.89||3.48||3.22||4.47||5.58||3.21|
|After Tax Sold||1.25||3.45||3.36||4.39||5.43||3.45|
|Fund Market Price||2.21||5.18||4.79||5.96||6.98||4.51|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|Wells Fargo Hybrid and Preferred Securities Financial Index||-3.00||1.95||3.53||5.55||7.77||4.96|
|S&P U.S. Preferred Stock Index||-5.74||-0.03||2.33||4.06||6.35||4.51|
|Fund History (%)|
|After Tax Held||-3.94||0.29||1.66||3.76||5.81||2.85|
|After Tax Sold||-1.71||1.61||2.19||3.87||5.67||3.19|
|Fund Market Price||-2.57||2.31||3.26||5.29||7.25||4.17|
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.
Growth of $10,000
Data beginning 10 years prior to the ending date of 06/30/2020. 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 08/10/2020
|A : 0%||A : 3%|
|BBB : 50%||Baa : 67%|
|BB : 45%||Ba : 21%|
|B : 1%||B : 0%|
|Not Rated : 4%||Not Rated : 8%|
Cash is excluded from the credit rating quality allocations table.
as of 08/10/2020 Top Fixed-Income Holdings | View All
|Holding Name||Coupon Rate||Maturity Date||Next Call Date||S&P / Moody's Rating†||Weight|
|JPMorgan Chase & Co||6.00%||03/01/2024||BBB-/Baa2||2.71%|
|Wells Fargo & Co||4.75%||03/15/2025||BB+/Baa2||2.67%|
|PNC Financial Services Group Inc/The||6.12%||05/01/2022||BBB-/Baa2||2.56%|
|JPMorgan Chase & Co||5.75%||12/01/2023||BBB-/Baa2||2.48%|
|Wells Fargo & Co||5.85%||09/15/2023||BB+/Baa2||2.33%|
|Bank of America Corp||5.38%||12/30/2049||06/25/2024||BBB-/Baa3||2.08%|
|Bank of America Corp||6.00%||05/16/2023||BBB-/Baa3||1.99%|
|JPMorgan Chase & Co||6.10%||12/01/2020||BBB-/Baa2||1.97%|
|Bank of America Corp||5.00%||09/17/2024||BBB-/Baa3||1.79%|
Holdings are subject to change and are not buy/sell recommendations.
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. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying 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.
Investments focused in a particular sector, such as financial, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Preferred securities may be less liquid than many other securities, and in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date.
Variable- and floating-rate securities may be subject to liquidity risk, limiting the Fund's ability to sell securities. Due to the features of these securities, there can be no guarantee they will pay a certain level of a dividend and will generally pay lower levels of income in falling interest rate environment.
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.
The Fund's use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
High yield securities involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, financial conditions of the issuers and in interest rates may adversely impact the ability of issuers to make timely payments of interest and principal.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
The S&P U.S. Preferred Stock Index is an unmanaged index consisting of U.S.-listed preferred stocks.
The Fund is not sponsored, issued or advised by Wells Fargo. Wells Fargo makes no representation or warranty, express or implied, to Fund investors or any member of the public regarding the performance of the Fund's Index or this Fund or the ability of any data supplied by Wells Fargo to track the performance of the securities referenced by the Fund's Index. Wells Fargo's only relationship to the Adviser is the licensing of certain trademarks and trade names of Wells Fargo and of the data supplied by Wells Fargo that is determined, composed and calculated by Wells Fargo without regard to this Fund or its common shares. Wells Fargo has no obligation to take the needs of the Fund into consideration when determining, composing or calculating the data. Wells Fargo has no obligation or liability in connection with the administration, marketing or trading of this Fund.