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Invesco Variable Rate Preferred ETF

Ticker: VRP
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Product Details

The Invesco Variable Rate Preferred ETF (Fund) is based on the ICE Variable Rate Preferred & Hybrid Securities Index (Index). The Fund will generally invest at least 90% of its total assets in floating and variable rate investment grade and below investment grade U.S. dollar denominated preferred stock and hybrid debt publicly issued by corporations in the U.S. domestic market. The Index is designed to track the performance of floating and variable rate investment grade and below investment grade U.S. dollar preferred stock, as well as certain types of hybrid securities that determined by the Index Provider, comparable to preferred stocks, that are issued by corporations in the U.S. market. 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 monthly.

Effective the close of markets on June 30, 2021, the Fund's underlying index, index provider, objective and strategy changed. The underlying index changed from the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index to the ICE Variable Rate Preferred & Hybrid Securities Index; the index provider changed from Wells Fargo Securities, LLC to ICE Data Indices, LLC; its objective changed to track the investment results of the new underlying index; and its strategy changed to generally invest 90% of its total assets in components of the new underlying index. See the prospectus for more information.

as of 10/31/2022 09/30/2022

Performance

Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
ICE Variable Rate Preferred & Hybrid Securities Total Return Index -11.27 -11.28 N/A N/A N/A N/A
S&P U.S. Preferred Stock Index -19.73 -19.61 -2.08 0.93 3.42 2.92
Fund History (%)
Fund NAV -11.46 -11.50 -0.56 1.52 N/A 3.39
After Tax Held -13.00 -13.21 -2.03 -0.05 N/A 1.78
After Tax Sold -6.75 -6.68 -0.77 0.75 N/A 2.15
Fund Market Price -11.53 -11.70 -0.64 1.47 N/A 3.37
Index History (%) YTD 1Yr 3Yr 5Yr 10Yr Since Inception
ICE Variable Rate Preferred & Hybrid Securities Total Return Index -11.09 -11.28 N/A N/A N/A N/A
S&P U.S. Preferred Stock Index -17.21 -16.25 -0.85 1.45 3.86 3.32
Fund History (%)
Fund NAV -11.23 -11.50 -0.01 1.49 N/A 3.46
After Tax Held -12.61 -13.13 -1.47 -0.06 N/A 1.85
After Tax Sold -6.61 -6.64 -0.33 0.74 N/A 2.21
Fund Market Price -11.90 -12.10 -0.22 1.37 N/A 3.35

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.

as of 09/30/2022

Growth of $10,000

Data beginning Fund inception and ending 09/30/2022. Fund performance shown at NAV.

ICE Variable Rate Preferred & Hybrid Securities Index* performance prior to 6/30/2021 reflects that of the original Underlying Index, Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. From 6/30/2021 forward, performance reflects that of the Underlying Index, ICE Variable Rate Preferred & Hybrid 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.

as of 11/30/2022

Sector Allocation

Sector Percent of Fund
Financials 72.34%
Energy 11.72%
Utilities 8.20%
Industrials 4.12%
Communication Services 2.41%
Consumer Staples 0.41%
Consumer Discretionary 0.40%
Investment Companies 0.40%

Quality Allocations as of 11/30/2022

S&P Moody's
AAA : 0% Aaa : 0%
AA : 0% Aa : 0%
A : 0% A : 0%
BBB : 58% Baa : 66%
BB : 35% Ba : 23%
B : 1% B : 1%
Not Rated : 6% Not Rated : 10%

Cash is excluded from the credit rating quality allocations table.

as of 11/30/2022 Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date Next Call Date S&P / Moody's Rating† Weight
General Electric Co 6.62% 12/31/2099 03/15/2023 BBB-/Baa3 2.49%
Wells Fargo & Co 3.90% 12/31/2099 03/15/2026 BB+/Baa2 1.38%
JPMorgan Chase & Co 4.60% 12/31/2049 02/01/2025 BBB-/Baa2 1.23%
Citigroup Capital XIII 10.78% 10/30/2040 12/30/2022 BB+/Baa3 1.16%
Charles Schwab Corp/The 5.38% 12/31/2099 06/01/2025 BBB/Baa2 1.13%
BP Capital Markets PLC 4.38% 12/31/2099 06/22/2025 BBB/Baa1 1.09%
BP Capital Markets PLC 4.88% 12/31/2049 03/22/2030 BBB/Baa1 1.03%
Bank of America Corp 5.88% 12/31/2049 03/15/2028 BBB-/Baa3 0.96%
JPMorgan Chase & Co 5.00% 12/31/2049 08/01/2024 BBB-/Baa2 0.96%
Vodafone Group PLC 7.00% 04/04/2079 01/04/2029 BB+/Ba1 0.92%

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

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 | HideView All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital Liquidation Distribution
11/21/2022 11/22/2022 11/25/2022 0.10172 0.10172 - - - -
10/24/2022 10/25/2022 10/28/2022 0.10081 0.10081 - - - -
09/19/2022 09/20/2022 09/23/2022 0.08960 0.08960 - - - -
08/22/2022 08/23/2022 08/26/2022 0.11341 0.11341 - - - -
07/18/2022 07/19/2022 07/22/2022 0.10940 0.10940 - - - -
06/21/2022 06/22/2022 06/30/2022 0.10547 0.10547 - - - -
05/23/2022 05/24/2022 05/31/2022 0.09796 0.09796 - - - -
04/18/2022 04/19/2022 04/29/2022 0.09754 0.09754 - - - -
03/21/2022 03/22/2022 03/31/2022 0.09685 0.09685 - - - -
02/22/2022 02/23/2022 02/28/2022 0.09727 0.09727 - - - -
01/24/2022 01/25/2022 01/31/2022 0.09178 0.09178 - - - -
12/20/2021 12/21/2021 12/31/2021 0.09012 0.09012 - - - -
11/22/2021 11/23/2021 11/30/2021 0.09012 0.09012 - - - -
10/18/2021 10/19/2021 10/29/2021 0.09003 0.09003 - - - -
09/20/2021 09/21/2021 09/30/2021 0.09015 0.09015 - - - -
08/23/2021 08/24/2021 08/31/2021 0.08978 0.08978 - - - -
07/19/2021 07/20/2021 07/30/2021 0.09002 0.09002 - - - -
06/21/2021 06/22/2021 06/30/2021 0.09250 0.09250 - - - -
05/24/2021 05/25/2021 05/28/2021 0.09265 0.09265 - - - -
04/19/2021 04/20/2021 04/30/2021 0.09242 0.09242 - - - -
03/22/2021 03/23/2021 03/31/2021 0.09553 0.09553 - - - -
02/22/2021 02/23/2021 02/26/2021 0.09577 0.09577 - - - -
01/19/2021 01/20/2021 01/29/2021 0.09339 0.09339 - - - -
12/21/2020 12/22/2020 12/31/2020 0.09289 0.09289 - - - -
11/23/2020 11/24/2020 11/30/2020 0.09235 0.09235 - - - -
10/19/2020 10/20/2020 10/30/2020 0.09203 0.09203 - - - -
09/21/2020 09/22/2020 09/30/2020 0.08964 0.08964 - - - -
08/24/2020 08/25/2020 08/31/2020 0.08752 0.08752 - - - -
07/20/2020 07/21/2020 07/31/2020 0.08952 0.08952 - - - -
06/22/2020 06/23/2020 06/30/2020 0.08762 0.08762 - - - -
05/18/2020 05/19/2020 05/29/2020 0.08977 0.08977 - - - -
04/20/2020 04/21/2020 04/30/2020 0.08901 0.08901 - - - -
03/23/2020 03/24/2020 03/31/2020 0.08799 0.08799 - - - -
02/24/2020 02/25/2020 02/28/2020 0.09047 0.09047 - - - -
01/21/2020 01/22/2020 01/31/2020 0.09374 0.09374 - - - -
12/23/2019 12/24/2019 12/31/2019 0.09695 0.09695 - - - -
11/18/2019 11/19/2019 11/29/2019 0.10487 0.10487 - - - -
10/21/2019 10/22/2019 10/31/2019 0.10778 0.10778 - - - -
09/23/2019 09/24/2019 09/30/2019 0.11161 0.11161 - - - -
08/19/2019 08/20/2019 08/30/2019 0.10366 0.10366 - - - -
07/22/2019 07/23/2019 07/31/2019 0.11137 0.11137 - - - -
06/24/2019 06/25/2019 06/28/2019 0.11558 0.11558 - - - -
05/20/2019 05/21/2019 05/31/2019 0.11680 0.11680 - - - -
04/22/2019 04/23/2019 04/30/2019 0.11425 0.11425 - - - -
03/18/2019 03/19/2019 03/29/2019 0.11281 0.11281 - - - -
02/19/2019 02/20/2019 02/28/2019 0.11000 - - - - -
01/22/2019 01/23/2019 01/31/2019 0.12365 0.12365 - - - -
12/24/2018 12/26/2018 12/31/2018 0.11393 0.11393 - - - -
11/19/2018 11/20/2018 11/30/2018 0.10274 0.10274 - - - -
10/22/2018 10/23/2018 10/31/2018 0.10331 0.10331 - - - -
09/24/2018 09/25/2018 09/28/2018 0.10297 0.10297 - - - -
08/20/2018 08/21/2018 08/31/2018 0.09106 0.09106 - - - -
07/23/2018 07/24/2018 07/31/2018 0.09000 0.09000 - - - -
06/18/2018 06/19/2018 06/29/2018 0.09862 0.09862 - - - -
05/21/2018 05/22/2018 05/31/2018 0.09382 0.09382 - - - -
04/23/2018 04/24/2018 04/30/2018 0.09840 0.09840 - - - -
03/19/2018 03/20/2018 03/29/2018 0.10151 0.10151 - - - -
02/20/2018 02/21/2018 02/28/2018 0.10285 0.10285 - - - -
01/22/2018 01/23/2018 01/31/2018 0.10551 0.10551 - - - -
12/18/2017 12/19/2017 12/29/2017 0.09221 0.09221 - - - -
11/20/2017 11/21/2017 11/30/2017 0.10248 0.10248 - - - -
10/23/2017 10/24/2017 10/31/2017 0.08561 0.08561 - - - -
09/18/2017 09/19/2017 09/29/2017 0.09534 0.09534 - - - -
08/15/2017 08/17/2017 08/31/2017 0.10000 0.10000 - - - -
07/14/2017 07/18/2017 07/31/2017 0.10266 0.10266 - - - -
06/15/2017 06/19/2017 06/30/2017 0.10148 0.10148 - - - -
05/15/2017 05/17/2017 05/31/2017 0.10244 0.10244 - - - -
04/13/2017 04/18/2017 04/28/2017 0.10502 0.10502 - - - -
03/15/2017 03/17/2017 03/31/2017 0.10519 0.10519 - - - -
02/15/2017 02/17/2017 02/28/2017 0.10445 0.10445 - - - -
01/13/2017 01/18/2017 01/31/2017 0.10560 0.10560 - - - -
12/15/2016 12/19/2016 12/30/2016 0.11375 0.11375 - - - -
11/15/2016 11/17/2016 11/30/2016 0.10691 0.10691 - - - -
10/14/2016 10/18/2016 10/31/2016 0.10295 0.10295 - - - -
09/15/2016 09/19/2016 09/30/2016 0.10028 0.10028 - - - -
08/15/2016 08/17/2016 08/31/2016 0.10205 0.10205 - - - -
07/15/2016 07/19/2016 07/29/2016 0.10217 0.10217 - - - -
06/15/2016 06/17/2016 06/30/2016 0.10748 0.10748 - - - -
05/13/2016 05/17/2016 05/31/2016 0.10748 0.10748 - - - -
04/15/2016 04/19/2016 04/29/2016 0.10982 0.10982 - - - -
03/15/2016 03/17/2016 03/31/2016 0.10100 0.10100 - - - -
02/12/2016 02/17/2016 02/29/2016 0.10000 0.10000 - - - -
01/15/2016 01/20/2016 01/29/2016 0.10099 0.10099 - - - -
12/15/2015 12/17/2015 12/31/2015 0.10000 0.10000 - - - -
11/13/2015 11/17/2015 11/30/2015 0.10959 0.10959 - - - -
10/15/2015 10/19/2015 10/30/2015 0.10729 0.10729 - - - -
09/15/2015 09/17/2015 09/30/2015 0.09424 0.09424 - - - -
08/14/2015 08/18/2015 08/31/2015 0.09875 0.09875 - - - -
07/15/2015 07/17/2015 07/31/2015 0.10877 0.10877 - - - -
06/15/2015 06/17/2015 06/30/2015 0.10623 0.10623 - - - -
05/15/2015 05/19/2015 05/29/2015 0.09726 0.09726 - - - -
04/15/2015 04/17/2015 04/30/2015 0.09760 0.09760 - - - -
03/13/2015 03/17/2015 03/31/2015 0.09622 0.09622 - - - -
02/13/2015 02/18/2015 02/27/2015 0.10288 0.10288 - - - -
01/15/2015 01/20/2015 01/30/2015 0.10000 0.10000 - - - -
12/15/2014 12/17/2014 12/31/2014 0.10139 0.10139 - - - -
11/14/2014 11/18/2014 11/28/2014 0.10896 0.10896 - - - -
10/15/2014 10/17/2014 10/31/2014 0.10000 0.10000 - - - -
09/15/2014 09/17/2014 09/30/2014 0.11000 0.11000 - - - -
08/15/2014 08/19/2014 08/29/2014 0.11000 0.11000 - - - -
07/15/2014 07/17/2014 07/31/2014 0.11000 0.11000 - - - -
06/13/2014 06/17/2014 06/30/2014 0.11000 0.11000 - - - -

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%
09/30/2022 64 12 9 8 1 0 0
06/30/2022 62 14 1 0 0 0 0
03/31/2022 62 44 7 1 0 0 0
12/31/2021 64 53 4 0 0 0 0
Year Ended 2021 252 165 49 2 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%
09/30/2022 64 11 15 7 1 0 0
06/30/2022 62 27 14 5 0 1 0
03/31/2022 62 10 0 0 0 0 0
12/31/2021 64 7 0 0 0 0 0
Year Ended 2021 252 30 4 2 0 0 0

Fund Inception : 05/01/2014

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

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.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Variable- and floating-rate securities may be subject to liquidity risk, there may be limitations on 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 such securities will pay lower levels of income in falling interest rate environment.

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 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. The 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.

Preferred securities may include provisions that permit the issuer to defer or omit distributions for a certain period of time, and reporting the distribution for tax purposes may be required, even though the income may not have been received. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment than more senior securities.

Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate 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 S&P U.S. Preferred Stock Index is an unmanaged index designed to measure the performance of the US preferred stock market. An investment cannot be made into an index.

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® is a trademark of ICE Data Indices, LLC or its affiliates (“ICE Data”) and has been licensed, along with the ICE Variable Rate Preferred & Hybrid Securities Index (“Index”) for use by Invesco Capital Management LLC (“Adviser”) in connection with the Invesco Variable Rate Preferred ETF. Neither Invesco Capital Management LLC (“Adviser”) nor the Invesco Variable Rate Preferred ETF, is sponsored, operated, endorsed, recommended, sold or promoted by ICE Data and its respective third party suppliers. ICE Data and its respective third party suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Invesco Variable Rate Preferred ETF particularly, or the ability of the Index to track general market performance. Past performance of the Index is not an indicator of or a guarantee of future results. ICE DATA AND ITS THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDEX, INDEX DATA AND ANY INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM (“INDEX DATA”). ICE DATA AND ITS THIRD PARTY SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES AND THE INDEX DATA, WHICH ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK.