Invesco lists a new High Yield ETF on LSE

Invesco has launched one new Exchange Traded Fund (ETF) to the LSE (London Stock Exchange)

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By ETFWorld.co.uk

Invesco US High Yield Fallen Angels UCITS ETF Acc

The Invesco US High Yield Fallen Angels UCITS ETF Acc aims to provide the total return performance of the FTSE Time-Weighted US Fallen Angel Bond Select Index, less the impact of fees.

The Reference Index measures the performance of “fallen angels” – bonds which were previously rated investment-grade, but were subsequently downgraded to high-yield. To be included, the securities must be USD-denominated bonds issued by corporations domiciled in the US or Canada.

Any such bonds with a rating changed from investment-grade to high-yield in the previous month are eligible for inclusion and will be held for a period of 60 months, provided they continue to meet the inclusion criteria. If a bond exits and then re-enters the Index, the inclusion period is reset.

Unlike indices where constituent weights are based on market value, the Reference Index’s weights are determined based on the time from inclusion, with higher weights assigned to bonds that have more recently become “fallen angels” (aiming to capture the potential price rebound effect that fallen angels may experience soon after their initial downgrade to high-yield).

No single issuer can make up more than 5% of the Reference Index. For liquidity, constituents’ time-based weights are capped at 5 times their respective market value-based weights. The Reference Index is rebalanced monthly.

Source: ETFWorld.co.uk