Invesco US High Yield Fallen Angels

ETF description

This ETF focuses on a specific type of corporate bond known as ‘“fallen angels.”’ These are bonds that were originally issued by companies with higher credit ratings but have since been downgraded to a lower rating. Bonds like these are often issued by large, well‑known businesses that have faced financial or operational challenges, leading to their downgrade.

This ETF may interest investors looking for exposure to corporate bonds that offer higher yields than those with stronger credit ratings.

Issuer details

Invesco is one of the world’s largest ETF providers with over US$680 billion globally in ETF assets under management (as at 31 March 2024). It offers over 140 EMEA ETFs spanning regions and strategies across equities, fixed income and commodities.

Its culture of innovation lets it find new opportunities for investors, as well as ways to improve the performance of core ETF exposures.

Index details

The Reference Index measures the performance of ‘fallen angels’ – bonds which were previously rated investment‑grade, but were subsequently downgraded to high‑yield. To be included, the securities must be USD‑denominated bonds issued by corporations domiciled in the US or Canada. Any such bonds with a rating changed from investment‑grade to high‑yield in the previous month are eligible for inclusion and will be held for a period of 60 months, provided they continue to meet the inclusion criteria.