Invesco USD CLO UCITS ETF Accumulating

Invesco USD AAA CLO UCITS ETF Accumulating is an actively managed exchange-traded fund domiciled in Ireland and launched in 2025. It provides exposure to high-quality USD-denominated collateralized loan obligations, focusing primarily on AAA-rated tranches, which comprise at least 80% of the portfolio, with up to 20% in AA-rated securities. These CLOs are structured as special purpose vehicles issuing floating-rate debt backed by pools of senior secured corporate loans, featuring a cashflow waterfall that prioritizes payments to senior tranches for enhanced protection. The accumulating share class reinvests interest income from coupons back into the fund, aiming for consistent income generation and capital preservation over the long term. With around 47 holdings, the ETF employs physical replication through active security selection, emphasizing CLOs from trusted managers to optimize performance and liquidity. Unhedged against currency risk, it serves professional investors seeking diversification in fixed income markets due to the low historical default rates and attractive spreads of AAA CLOs compared to other investment-grade instruments.