PFIG Profile
The Invesco Fundamental Investment Grade Corporate Bond ETF is designed to provide investors with exposure to a diversified portfolio of U.S. dollar-denominated investment-grade corporate bonds. Under normal market conditions, the fund will allocate at least 80% of its total assets to the securities included in its underlying index. This index is meticulously compiled and maintained by Research Affiliates, LLC or its designated agent, ensuring adherence to strict guidelines and procedures.
The index focuses on investment-grade corporate bonds, which are either SEC-registered or fall under Rule 144A and Section 3(a)(2) of the Securities Act of 1933, provided they have registration rights. These bonds are issued by public companies domiciled in the United States, ensuring that the fund invests in high-quality debt securities with lower credit risk. This focus aligns with the fund's objective of offering stable income through bonds rated as investment grade, which are considered to have a lower probability of default.
The fund's approach emphasizes a systematic methodology for selecting bonds that meet specific criteria set forth by the index's methodology. This involves evaluating the credit quality and financial health of issuers to ensure that the bonds included in the index and, consequently, the fund's portfolio, adhere to a high standard of creditworthiness. This strategic focus aims to balance risk and return, providing investors with consistent income while minimizing exposure to higher-risk securities.
As an ETF, the Invesco Fundamental Investment Grade Corporate Bond ETF benefits from the liquidity and transparency associated with exchange-traded funds, offering investors an efficient means to gain broad exposure to a carefully selected basket of corporate bonds. By adhering to the index's rigorous selection criteria and maintaining a focus on investment-grade bonds, the fund seeks to provide a reliable source of income and capital preservation for its investors.
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