The Invesco Variable Rate Preferred ETF (Fund) is based on the Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index (Index). The Fund will generally invest at least 90% of its total assets in preferred securities that comprise the Index. The Index is a market capitalization-weighted index designed to track the performance of preferred stock, as well as certain types of "hybrid securities" that are functionally equivalent to preferred stock based on equity features. The Fund and the Index are rebalanced monthly.
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index||-0.36||1.04||3.65||5.54||N/A||5.13|
|S&P U.S. Preferred Stock Index||1.40||3.02||4.74||5.10||6.03||5.32|
|Fund History (%)|
|After Tax Held||-1.98||-0.81||1.71||3.60||N/A||3.18|
|After Tax Sold||-0.32||0.61||2.04||3.54||N/A||3.20|
|Fund Market Price||-1.06||0.14||3.18||5.22||N/A||4.76|
|Index History (%)||YTD||1Yr||3Yr||5Yr||10Yr||Since Inception|
|Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index||-1.26||1.62||3.27||5.59||N/A||5.05|
|S&P U.S. Preferred Stock Index||0.97||3.25||4.41||5.49||6.03||5.32|
|Fund History (%)|
|After Tax Held||-2.67||-0.23||1.30||3.66||N/A||3.11|
|After Tax Sold||-0.82||1.00||1.73||3.59||N/A||3.15|
|Fund Market Price||-1.31||1.58||3.06||5.34||N/A||4.79|
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 Fund inception and ending 09/30/2020. 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 The results assume that no cash was added to or assets withdrawn from the Index.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.
|Sector||Percent of Fund|
Quality Allocations† as of 12/02/2020
|A : 0%||A : 5%|
|BBB : 57%||Baa : 61%|
|BB : 37%||Ba : 25%|
|B : 1%||B : 1%|
|Not Rated : 5%||Not Rated : 8%|
Cash is excluded from the credit rating quality allocations table.
as of 12/02/2020 Top Fixed-Income Holdings | View All
|Holding Name||Coupon Rate||Maturity Date||Next Call Date||S&P / Moody's Rating†||Weight|
|General Electric Co||5.00%||12/31/2099||01/21/2021||BBB-/Baa3||2.35%|
|JPMorgan Chase & Co||4.60%||12/31/2049||02/01/2025||BBB-/Baa2||1.43%|
|JPMorgan Chase & Co||3.68%||12/31/2049||01/30/2021||BBB-/Baa2||1.36%|
|Charles Schwab Corp/The||5.38%||12/31/2099||06/01/2025||BBB/Baa2||1.31%|
|GMAC Capital Trust I||6.01%||02/15/2040||01/04/2021||BB-/Ba3||1.31%|
|BP Capital Markets PLC||4.88%||12/31/2049||03/22/2030||BBB/A3||1.29%|
|BP Capital Markets PLC||4.38%||12/31/2059||06/22/2025||BBB/A3||1.26%|
|Bank of America Corp||5.88%||12/31/2049||03/15/2028||BBB-/Baa3||1.22%|
|Wachovia Capital Trust III||5.57%||08/29/2049||01/04/2021||BB+/Baa2||1.19%|
|Vodafone Group PLC||7.00%||04/04/2079||01/04/2029||BB+/Ba1||1.16%|
Holdings are subject to change and are not buy/sell recommendations.
Risk & Other Information
Typically, security classifications used in calculating allocation tables are as of the last trading day of the previous month.
† 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.
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.
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.
Convertible securities are subject to the risks associated with both debt and equity securities. As with equity securities, declining common stock values may cause the value of the Fund's investments to decline. A debt security tends to decrease in value when interest rates rise. Many convertible securities are subject to the same risks as lower rated debt securities.
Hybrid securities are potentially more volatile than traditional equity securities and may carry credit and liquidity risks.
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.
Perpetual subordinated debt typically has lower credit ratings and lower priority than other obligations of an issuer during bankruptcy, presenting greater risk of nonpayment and increasing as the priority of the obligation becomes lower.
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 is non-diversified and may experience greater volatility than a more diversified investment.
Investments focused in a particular sector, such as financials, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The S&P U.S. Preferred Stock Index is an unmanaged index designed to measure the performance of the US preferred stock market.
The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.
Wells Fargo is the Index Provider for the Fund. The Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index is a service mark of Wells Fargo & Company and has been licensed for use by the Adviser. The Fund is not sponsored, issued or advised by Wells Fargo & Company, Wells Fargo Securities, LLC or their subsidiaries and affiliates (collectively, "Wells Fargo") and Wells Fargo makes no representation regarding the advisability of investing in the Fund. The Fund is entitled to use the Underlying Index pursuant to a sub-licensing agreement with the Adviser.