PHB Profile
The Invesco Fundamental High Yield Corporate Bond ETF is an investment vehicle focused on high yield corporate bonds, offering investors exposure to a diversified portfolio of these securities. The fund adheres to a strategy that invests at least 80% of its total assets in the securities that make up its underlying index. This index is specifically designed to track the performance of U.S. dollar-denominated high yield corporate bonds that are registered with the Securities and Exchange Commission (SEC).
Research Affiliates, LLC, or its designated agent, is responsible for compiling and calculating the index. The index’s methodology is centered on high yield corporate bonds, which are bonds issued by corporations with lower credit ratings. These bonds typically offer higher yields compared to investment-grade bonds to compensate for their higher risk. The index includes bonds from various sectors and industries, ensuring a broad representation of the high yield corporate bond market.
High yield bonds, also known as junk bonds, are characterized by their lower credit ratings and higher risk of default compared to investment-grade bonds. However, they often provide higher interest rates, which can be attractive to investors seeking higher income. The ETF’s focus on high yield corporate bonds allows investors to potentially benefit from higher returns while assuming the associated credit risk. The fund’s strategy is designed to capture the performance of these high yield securities while diversifying across different issuers and sectors.
By tracking an index compiled by Research Affiliates, LLC, the ETF provides investors with a transparent and rules-based approach to investing in high yield corporate bonds. The fund's performance is closely aligned with the index’s returns, offering a reliable benchmark for investors seeking to assess the performance of their high yield bond investments. This ETF is suited for investors who are looking to add high yield exposure to their portfolios, aiming for higher income and potential capital appreciation despite the increased risk.
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