Invesco launches new corporate bond ETF on Xetra
Invesco has launched the Invesco USD Corporate Bond UCITS ETF Exchange Traded Fund on Xetra and Börse Frankfurt.
The new fund offers investors the opportunity to participate in the performance of US dollar-denominated corporate bonds issued by US industrial, utility and financial issuers to the public. The securities included in the Bloomberg Barclays USD IG Corporate Liquidity Screened Bond Index include 80 per cent securities from the USA and other nations, including emerging markets.
As a selection criterion, the bonds must have an investment grade rating of at least Baa3/BBB-/BBB- using the average ratings of Moody's, S&P and Fitch. In addition, they must have a fixed coupon or dividend structure and an outstanding par value of at least one billion US dollars. An exception to this is the securities of issuers in the utilities sector, which must have an outstanding nominal value of at least 500 million US dollars. The remaining term of a bond at the time of issue is at least twelve months.