Invesco UK Gilts 1 – 5 Year

ETF description

This ETF focuses on investing in UK government bonds, also known as gilts, with maturities between 1 and 5 years. These bonds are considered relatively low‑risk because they are backed by the UK government, making them appealing for conservative investors seeking stability. The short‑term nature of the bonds means they are less sensitive to interest rate changes compared to longer‑term bonds, which can reduce volatility in the fund’s price.

This ETF may appeal to investors looking for a safe place to park their capital while earning regular interest payments. It could be particularly suited to those who prioritize capital preservation over high returns or who need an investment with lower risk for short‑term financial goals. Additionally, the fund could be an option for investors seeking to balance a portfolio with a conservative, bond‑focused allocation to manage overall risk.

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 UK Gilts 1 – 5 Year index offers investors targeted exposure to short‑term UK government bonds with maturities between 1 and 5 years. By focusing on short‑duration gilts, the index provides stability and lower interest rate risk while reflecting the performance of high‑quality sovereign debt.