Overview
Description
The Invesco U.S. High Yield Bond Factor ETF is a type of exchange-traded fund that primarily focuses on investing in the high-yield bond market segment within the United States. This ETF aims to provide exposure to bonds that typically offer higher interest rates, compensating for higher credit risk compared to investment-grade bonds. The fund strategically selects bonds based on specific factors, such as credit ratings, maturity profiles, and yields, enabling investors to gain targeted exposure to a more nuanced bond portfolio.
The asset significantly impacts sectors such as telecommunications, energy, and consumer goods, where companies often issue high-yield bonds to finance operations and growth initiatives. Within the financial market, the ETF plays a crucial role by providing liquidity and accessibility to retail and institutional investors seeking diversified exposure to high-yield debt without the complexities of directly purchasing individual bonds. By leveraging factor-based investment strategies, the Invesco U.S. High Yield Bond Factor ETF serves as a valuable tool for investors aiming to balance risk and return within their fixed income portfolio.
About
Instrument type
ETF
Country
United Kingdom
MIC code
XLON