Navigating Fixed Income: Where to Go With Volatile Rates and Low Yields

We all know that yield can be difficult to come by lately. On top of that, interest rates seem as uncertain as ever. While that dichotomy may be daunting, there’s still opportunities to be had in today’s fixed income markets.

In the upcoming webcast, Navigating Fixed Income: Where to Go with Volatile Rates and Low Yields, Brian McMullen, Fixed Income ETF Strategist, Invesco, will explore ways investors can use bond ETFs to navigate these difficult times and access potentially attractive opportunities.

For example, the Invesco Total Return Bond ETF (GTO) takes an active approach to navigate the current fixed-income market. GTO can help intermediate-term bond investors seeking monthly income and total return opportunities. The fund will invest at least 80% of its total assets in fixed income instruments of varying maturities and of any credit qualities.

The Invesco Senior Loan ETF (BKLN) tracks the investment results of the S&P/LSTA U.S. Leveraged Loan 100 Index. The advisor and the fund’s sub-advisor define senior loans to include loans referred to as leveraged loans, bank loans, and/or floating rate loans. Senior loans includes a floating interest rate component, which fluctuates with market rates. The coupons on these loans adjust to movements in short-term rates, so if rates rise, the coupon rates will too, which may also occur during inflationary periods.

The Invesco Variable Rate Preferred ETF (VRP) is another income-generating idea. It’s one thing to seek higher yield, but it’s another matter entirely to get quality exposure. That’s where preferred securities become a prime option for both and more. VRP is based on the ICE Variable Rate Preferred & Hybrid Securities Index, which 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 determined by the index provider, comparable to preferred stocks, that are issued by corporations in the U.S. market.

Financial advisors who are interested in learning more about fixed-income strategies can register for the Monday, September 20 webcast here.