The Invesco Preferred ETF (Fund) is based on the ICE BofAML Core Plus Fixed Rate Preferred Securities Index (Index). The Fund will normally invest at least 80% of its total assets in fixed rate US dollar-denominated preferred securities that comprise the Index. The Index tracks the performance of fixed rate US dollar-denominated preferred securities issued in the US domestic market. (Securities must be rated at least B3, based on an average of three leading ratings agencies: Moody’s, S&P and Fitch) and must have an investment-grade country risk profile (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings). The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a "sampling" methodology to seek to achieve its investment objective. The Fund and the Index are rebalanced and reconstituted on a monthly basis.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|ICE BofAML Core Plus Fixed Rate Preferred Securities Index||4.70||-3.32||-3.66||0.39||3.95||N/A|
|S&P U.S. Preferred Stock Index||6.75||0.58||-0.57||1.74||4.23||4.41|
|Fund History (%)|
|After Tax Held||2.72||-5.71||-5.58||-1.53||1.91||0.76|
|After Tax Sold||2.67||-1.85||-3.30||-0.21||2.48||1.51|
|Fund Market Price||4.32||-3.56||-4.01||0.14||3.67||2.44|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|ICE BofAML Core Plus Fixed Rate Preferred Securities Index||5.09||-1.80||-1.47||0.75||3.71||N/A|
|S&P U.S. Preferred Stock Index||6.00||1.70||1.63||1.94||3.91||4.41|
|Fund History (%)|
|After Tax Held||3.70||-3.96||-3.32||-1.11||1.71||0.83|
|After Tax Sold||2.98||-0.77||-1.59||0.11||2.30||1.56|
|Fund Market Price||4.76||-2.17||-1.86||0.49||3.44||2.50|
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 06/30/2023. Fund performance shown at NAV.
The ICE BofAML Core Plus Fixed Rate Preferred Securities Index* performance prior to 4/2/2012 reflects that of the original Underlying Index The ICE BofAML Core Fixed Rate Preferred Securities Index. From 4/2/2012, forward, the Index performance reflects that of the Underlying Index The ICE BofAML Core Plus Fixed Rate Preferred Securities 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.
|Sector||Percent of Fund|
Quality Allocations† as of 09/29/2023
|A : 1%||A : 5%|
|BBB : 63%||Baa : 66%|
|BB : 27%||Ba : 15%|
|B : 3%||B : 2%|
|CCC : 0%||Caa : 0%|
|Not Rated : 6%||Not Rated : 12%|
Cash is excluded from the credit rating quality allocations table.
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|
|JPMorgan Chase & Co||6.00%||12/31/2079||03/01/2024||BBB-/Baa2||1.85%|
|JPMorgan Chase & Co||5.75%||12/31/2079||12/01/2023||BBB-/Baa2||1.66%|
|Wells Fargo & Co||4.75%||12/31/2079||03/15/2025||BB+/Baa2||1.57%|
|JPMorgan Chase & Co||4.62%||12/31/2079||06/01/2026||BBB-/Baa2||1.48%|
|JPMorgan Chase & Co||4.20%||12/31/2079||09/01/2026||BBB-/Baa2||1.48%|
|Bank of America Corp||6.00%||12/31/2079||10/30/2023||BBB-/Baa2||1.30%|
|Bank of America Corp||5.38%||12/30/2049||06/25/2024||BBB-/Baa2||1.29%|
|JPMorgan Chase & Co||4.55%||12/31/2079||06/01/2026||BBB-/Baa2||1.17%|
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.
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.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
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.
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.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
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 securities than are in the underlying Index, and may be subject to greater volatility.
The Fund invests in financial instruments that use the London Interbank Offered Rate (“LIBOR”) as a reference or benchmark rate for variable interest rate calculations. LIBOR will be phased out by the end of 2021, and it's anticipated that LIBOR will cease to be published after that time. To assist with the transition, US dollar LIBOR rates will continue to be published until June 2023. There is uncertainty on the effects of the LIBOR transition process, therefore any impact of the LIBOR transition on the Fund or its investments cannot yet be determined. There is no assurance an alternative rate will be similar to, produce the same value or economic equivalence or instruments using the rate will have the same volume or liquidity as LIBOR. Any effects of LIBOR transition and the adoption of alternative rates could result in losses to the Fund.
Reinvestment risk is the risk that a bond’s cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond.
The S&P U.S. Preferred Stock Index is an unmanaged index consisting of U.S.-listed preferred stocks.
The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.
"ICE BofAML", "The ICE BofAML Core Fixed Rate Preferred Securities Index " and "The ICE BofAML Core Plus Fixed Rate Preferred Securities Index" are reprinted with permission. © Copyright 2017 ICE Data Indices, LLC ("ICE BofAML"). All rights reserved. "ICE BofAML", "The ICE BofAML Core Fixed Rate Preferred Securities Index" and "The ICE BofAML Core Plus Fixed Rate Preferred Securities Index" are service marks of ICE BofAML and/or its affiliates and have been licensed for use for certain purposes by Invesco on behalf of the Invesco Preferred ETF that is based on The ICE BofAML Core Plus Fixed Rate Preferred Securities Index, and is not issued, sponsored, endorsed or promoted by ICE BofAML and/or ICE BofAML's affiliates nor is ICE BofAML and/or ICE BofAML's affiliates an adviser to the Invesco Preferred ETF. ICE BofAML and ICE BofAML's affiliates make no representation, express or implied, regarding the advisability of investing in the Invesco Preferred ETF or The ICE BofAML Core Plus Fixed Rate Preferred Securities Index and do not guarantee the quality, accuracy or completeness of The ICE BofAML Core Plus Fixed Rate Preferred Securities Index, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, ICE BofAML is licensing certain trademarks, The ICE BofAML Core Fixed Rate Preferred Securities Index, The ICE BofAML Core Plus Fixed Rate Preferred Securities Index and trade names which are composed by ICE BofAML without regard to Invesco, the Invesco Preferred ETF or any investor. ICE BofAML and ICE BofAML's affiliates do not provide investment advice to Invesco or the Invesco Preferred ETF and are not responsible for the performance of the Invesco Preferred ETF.