HIYS Profile
The Invesco High Yield Select ETF is an actively managed exchange-traded fund focused on delivering high returns through investments in high-yield, below-investment-grade fixed-income securities. Under normal market conditions, the fund commits at least 80% of its net assets, including any borrowings for investment purposes, to these higher-quality, non-investment-grade securities. This strategy aims to capitalize on the higher yield offered by lower-rated bonds while maintaining a focus on those with relatively better credit quality.
The fund’s investment approach includes not only direct investments in high-yield bonds but also in derivatives and other financial instruments that replicate the economic characteristics of these securities. This allows the fund to enhance its exposure to high-yield assets while employing various strategies to manage risk and optimize returns. The use of derivatives can include credit default swaps, futures, and options, which are used to hedge against potential risks or to gain additional exposure to high-yield assets.
As an actively managed ETF, the fund benefits from a dynamic investment strategy where portfolio managers continuously assess market conditions and adjust the portfolio to capture opportunities in the high-yield bond market. This active management aims to improve performance by selectively choosing bonds with favorable risk-return profiles and by making tactical adjustments based on market conditions and economic outlooks.
The Invesco High Yield Select ETF is non-diversified, meaning its investments are concentrated in a narrower range of assets compared to diversified funds. This concentration allows for potentially higher returns but also comes with increased risk. The fund is suited for investors who are willing to accept higher risk in exchange for the potential of higher income, and who seek exposure to high-yield bonds with a focus on credit quality and strategic management.
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