On Wednesday, February 25, Invesco expanded its fixed income ETF lineup. It announced the launch of two new funds on the New York Stock Exchange.
A Flexible Fixed Income Approach
First on the docket is the Invesco MSCI Treasury Duration Rotation ETF (TROT). TROT aims to offer similar results to that of the MSCI U.S. Treasury Duration Rotation Select Bond Index.
This index provides an adaptive method for playing fixed income exposure, based on how interest rates and broader economic conditions are looking. Put simply, the index’s strategy allows it to shift its weightings and duration exposure to adapt to ongoing macroeconomic conditions.
The Advantages of Hybrid Bonds
Next up is the Invesco U.S. Hybrid Bond ETF (NYSE Arca: HBRD). HBRD also utilizes an index as a barometer, seeking to provide performance that tracks the ICE USD Developed Markets Corporate Ex-Banks Hybrid Bond 4.65% Constrained Index.
The index focuses on hybrid corporate bonds that are rated between AAA and BB2. Of course, hybrid bonds themselves offer a potent niche in portfolios. They provide a blend of fixed income yield with equity-like characteristics.
Tapping Into Invesco’s Investment Expertise
“Fixed income markets today demand flexibility, disciplined risk management and deep sector expertise,” said Jason Bloom, Invesco’s Head of Fixed Income ETF Strategy. “These ETFs extend proven investment approaches – many with long‑standing mutual fund track records – into an ETF structure, allowing investors to access differentiated active insights alongside rules‑based strategies as part of a cohesive fixed income toolkit.”
TROT and HBRD are not the only fixed income funds that Invesco has launched today. The firm also launched the Invesco Flexible Income ETF (FLXI) and the Invesco Agency MBS ETF (IMTG), which are now available on the Cboe BXZ Exchange. These launches showcase Invesco’s growing presence and commitment to expanding its collection of different investment solutions within the ETF wrapper.
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