Invesco expanded on its line of smart beta offerings with two new multi-factor fixed-income ETFs to help bond investors access more high quality and higher yielding segments of the debt markets.
Invesco recently launched the Invesco Multi-Factor Defensive Core Fixed Income ETF (Cboe: IMFD) and the Invesco Multi-Factor Income ETF (Cboe: IMFI), which have a 0.12% and 0.16% expense ratio, respectively.
The Invesco Multi-Factor Defensive Core Fixed Income ETF tries to reflect the performance of the Invesco Multi-Factor Defensive Core Index, which is designed to provide multi-factor exposure to fixed income securities, according to the fund’s prospectus.
Specifically, the underlying index has a more defensive tilt or a safer debt exposure that follows a targeted weighting methodology to gain exposure to bond market segments, including Invesco U.S. Treasury 1-3 Years Index 55%, Invesco U.S. Fixed Rate 30-Year MBS Index 20%, Invesco Investment Grade Defensive Index 15% and Invesco Emerging Markets Debt Defensive Index 10%.