Invesco Ltd. has expanded its smart beta line up into the fixed-income asset class with the launch of a new suite of factor-based bond exchange traded funds.
Invesco recently rolled out 8 factor-based bond ETFs, including:
- Invesco Corporate Income Defensive ETF (NYSEArca: IHYD), 0.23% expense ratio
- Invesco Corporate Income Value ETF (NYSEArca: IHYV), 0.23% expense ratio
- Invesco Emerging Markets Debt Defensive ETF (NYSEArca: IEMD), 0.29% expense ratio
- Invesco Emerging Markets Debt Value ETF (NYSEArca: IEMV), 0.29% expense ratio
- Invesco Investment Grade Defensive ETF (NYSEArca: IIGD), 0.13% expense ratio
- Invesco Investment Grade Value ETF (NYSEArca: IIGV), 0.13% expense ratio
- Invesco Multi-Factor Core Fixed Income ETF (NYSEArca: IMFC), 0.12% expense ratio
- Invesco Multi-Factor Core Plus Fixed Income ETF (NYSEArca: IMFP), 0.16% expense ratio
The new Invesco Fixed Income Factor ETF Suite combine the expert research of Invesco’s active management team with the newly formed Invesco Indexing division to provide rules-based, proprietary indices.
“Self-indexing is a natural extension of Invesco’s commitment to pursuing better outcomes for our clients and we are excited to have the capacity to address their diverse needs,” Andrew Waisburd, Head of Invesco Indexing, said in a note. “Our ability to internally build index instruments will allow Invesco to leverage our company-wide factor and fixed income proficiency to create more nuanced products that better incorporate the full range of its investment capabilities.”
A Look at Index Composition
The composition of each index was selected based on Invesco Indexing from U.S. dollar-denominated bonds issued by global companies, governments, and government agencies, including bonds that meet the index’s eligibility qualifications.
“Invesco was the pioneer in the smart beta fixed income ETF space with our first launch in 2007 and based on client demand we continue to introduce new fixed income ETFs that can serve as attractive portfolio diversifiers,” Dan Draper, Global Head of ETFs at Invesco, said in a note. “With the launch of the new self-indexed Fixed Income Factor Suite, investors have a new way to gain broad-based exposure in fixed income, while using factors to navigate the challenges in the current rising rate environment.”