Invesco is no stranger to the active ETF arena, and they continue to make strides in fixed income with the introduction of the Invesco Core Fixed Income ETF (GTOC) and the Invesco Intermediate Municipal ETF (INTM).
GTOC caters to those looking for a diversified array of bonds under the watchful care of an active strategy. From domestic/corporate debt to mortgage-backed securities and asset-backed securities, GTOC is a cornucopia of fixed income exposure. According to the principal investment strategy outlined in the prospectus, the fund will stick to mainly investment-grade debt issues. This allows the portfolio managers to strike a balance between quality and yield.
Additionally, municipal bonds have been offering fixed income investors with that same quality and yield potential. With stronger fundamentals than corporate bonds paired alongside attractive yields, munis have been attracting more investor attention. INTM delves into these muni opportunities, sticking to an intermediate focus with an average portfolio duration of four to six years. This offers a Goldilocks approach to munis, mitigating rate risk and maximizing yield opportunities. Again, the focus here is investment-grade issues to maximize quality per the fund’s investment strategy in the prospectus.
GTOC and INTM both come with a 0.25% and 0.35% expense ratio, respectively.
“At Invesco, we take pride in our long-standing track record of high-quality active fixed income management,” said Stephanie Larosiliere, Head of Fixed Income Business Strategy at Invesco, in a press release.
The strategies with active fixed income ETFs are inherent—investors tap into the ability of portfolio managers who can adjust the holdings as necessary to suit market conditions. They can add or subtract to the portfolio holdings as necessary, maximizing upside or protecting against the downside. In the case of fixed income, they can also seek opportunities in the ocean of bonds to maximize yield.
“These new ETFs demonstrate our commitment to delivering thoughtful, investor-focused strategies that reflect the strength of our in-house expertise,” Larosiliere added.
