Invesco Adds New Exposures to the Intelligent Income Suite of Its Fixed Income ETF Line-up

Rhea-AI Summary

Invesco Ltd. (IVZ) announces the addition of three new BulletShares ETFs to its Target Maturity suite, offering targeted duration exposure to harder-to-access areas of the fixed income market. The Intelligent Income line-up aims to provide enhanced income potential through thoughtfully constructed portfolios, addressing the growing demand for more precise investment exposures in the fixed income market.

Positive

• The addition of three new BulletShares ETFs expands Invesco's fixed income offerings, tapping into the growing market for more precise investment exposures in the fixed income market.
• Intelligent Income has been the dominant growth category in the fixed income ETF market, addressing the demand for enhanced income potential through thoughtfully constructed portfolios.

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• None.

Three new BulletShares ETFs add to Invesco's Target Maturity fixed income offerings 

ATLANTA, Nov. 8, 2023 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global provider of exchange-traded funds (ETFs), today announced the addition of three new BulletShares ETFs to the Target Maturity suite of its "Intelligent Income" line-up. Invesco defines Intelligent Income as ETFs that offer thoughtfully constructed, unique fixed income access that is often underrepresented in traditional core fixed income offerings. The three new BulletShares maturities are designed to provide a targeted duration exposure to three harder-to-access areas of the fixed income market.  

"Bulk beta is out of favor in fixed income, and the targeted maturity access inherent in our BulletShares ETFs allows clients to target more precise investment exposures," said Jason Bloom, Head of Fixed Income and Alternative ETF Strategy, Invesco. "Investors are looking for fixed income ETFs that can offer the potential for enhanced income potential through thoughtfully, precisely constructed portfolios, which we call 'Intelligent Income.' These sectors of the fixed income market are quite often missing from traditional fixed income benchmark¹ exposure."

In a period where fixed income ETFs are growing at a rate of around $200 billion per year², Intelligent Income has been the dominant growth category. In the past three years, it has accounted for about 47% of fixed income flows³ and Invesco believes this category has the potential to reach $5 trillion in Assets Under Management (AUM) over the next 5 years.

The three new BulletShares ETFs offer investors access to some fixed income sectors not captured in broad fixed income benchmarks¹ - such as high yield corporate bonds - in a structure with a predetermined termination date. This termination date will align with the maturity year or expected call date of the bonds held⁴ in its transparent⁵ ETF portfolio. Following are the three new ETFs:

• Invesco BulletShares 2033 Corporate Bond ETF (BSCX)
• Invesco BulletShares 2031 High Yield Corporate Bond ETF (BSJV)
• Invesco BulletShares 2033 Municipal Bond ETF (BSSX)

Invesco is the category leader in Intelligent Income ETFs, which are "smart" indexes that allocate to "non-core" portions of fixed income that may not be easily investible, such as over-the-counter (OTC) or less liquid areas of the market. Investors are starting to appreciate many of the unique ways to access income that may be undervalued in current market conditions and prioritizing non-core fixed income positions that focus on Target Maturity, unique Access and Active ETFs.

"The Invesco Intelligent Income ETFs specifically aim to access the approximately 55% of the US fixed income market not covered by the constraints of the Bloomberg US Aggregate Bond Index⁶," said Bloom. "Instead of broad building blocks, Invesco fixed income ETFs offer a variety of finely tuned solutions that have the potential to enhance and diversify income potential, manage duration, or access the expertise of Invesco's active fixed income managers through ETFs."

Investors who are rethinking their fixed income exposure can find representation across key sectors through Invesco's Intelligent Income fixed income ETF suite.

For more information about Invesco's fixed income ETFs, please visit: Invesco Fixed Income ETFs.

About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US $1.49 trillion in assets on behalf of clients worldwide as of Sept. 30, 2023. For more information, visit www.invesco.com/corporate.

¹ Bloomberg Aggregate Bond Index only tracks the broad performance of the U.S. investment-grade bond market. An investment cannot be made directly into an index.
^{2 and 3} Bloomberg L.P. as of September 18, 2023.
⁴ The funds will terminate on or about December 15th of the calendar year included in each fund's name.
⁵ ETFs that disclose their full portfolio holdings daily.
⁶ Bloomberg L.P., as of June 30, 2023.

Important Information
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

Unlike individual bonds, bond funds have fees and expenses and most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. The funds do not seek any predetermined amount at maturity, and the amount an investor receives may be worth more or less than the original investment. In contrast, an individual bond matures; an investor typically receives the bond's par or (face value).

About Risk
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 Funds are subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Funds.

BulletShares ETFs
Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The funds are non-diversified and may experience greater volatility than a more diversified investment. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. During the final year of the funds' operations, as the bonds mature and the portfolio transitions to cash and cash equivalents, the funds' yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the funds and/or bonds in the market.

An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.

Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds' income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds' income.

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

BulletShares Municipal ETFs
Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer's ability to make payments of principal and/ or interest.

The opinions expressed herein are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invesco.com for the prospectus/summary prospectus.

Invesco Distributors, Inc. is the US distributor for Invesco's retail products and private placements. Each entity is an indirect, wholly owned subsidiary of Invesco Ltd.

Media Relations Contact: Stephanie Diiorio, 212-278-9037, stephanie.diiorio@invesco.com

 

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SOURCE Invesco Ltd.

FAQ

What did Invesco announce?

Invesco Ltd. (IVZ) announced the addition of three new BulletShares ETFs to its Target Maturity suite, offering targeted duration exposure to harder-to-access areas of the fixed income market.

What is Intelligent Income?

Intelligent Income refers to ETFs that offer thoughtfully constructed, unique fixed income access that is often underrepresented in traditional core fixed income offerings.

What is the current growth rate of fixed income ETFs?

Fixed income ETFs are growing at a rate of around $200 billion per year.

What has been the dominant growth category in the fixed income ETF market?

Intelligent Income has been the dominant growth category, addressing the demand for enhanced income potential through thoughtfully constructed portfolios.