Invesco has listed a new US dollar-denominated corporate bond exchange-traded fund on the London Stock Exchange as of 6 March 2026.
Sign up to our free newsletters
Article created by the editorial staff of ETFWorld.co.uk
Matthew Tagliani, Head of ETF Product EMEA at Invesco
The Invesco USD IG Corporate Bond Yield Plus UCITS ETF Acc (ISIN: IE0005KNCL90) is designed to track an index that selects bonds based on spread levels within the investment grade universe.
Index Methodology
The fund tracks the iBoxx USD Corporates Investment Grade Spread Select Top 50% TCA Index. The index begins with the broader iBoxx USD Corporates Index as its parent universe. At each quarterly reconstitution, bonds are grouped into 20 categories based on remaining time to maturity and sector classification .
Within each category, securities are ranked by their benchmark spread—defined as the premium over the yield of a default-free bond with similar maturity. The top 50 per cent of bonds with the highest spreads within each category are selected for the index. The index is market value weighted .
Investment Approach
The ETF is passively managed. Invesco applies a sampling strategy to track the reference index, using quantitative analysis to select securities based on factors including index weighted average duration and credit quality .
According to Matthew Tagliani, Head of EMEA ETF Product at Invesco, the strategy applies a systematic approach drawn from active management to a passive index structure. “By carefully controlling the risk versus the traditional benchmark, we look to provide a cost-effective, rules-based, passive index product in an efficient ETF structure,” Tagliani said .
Paul Syms, Head of EMEA ETF Fixed Income and Commodity Product Management at Invesco, noted that the methodology aims to deliver a diversified solution with similar characteristics to the parent index, including sector allocation and interest rate risk. “As a result, these new launches aim to offer similar volatility to the benchmark but with higher total returns,” Syms added .
Product Details
The ETF carries a total expense ratio (TER) of 0.15 per cent. It is classified as an accumulating share class, meaning income generated by the underlying bonds is reinvested within the fund rather than distributed to shareholders.
The fund provides exposure to USD-denominated investment grade corporate bonds while aiming for yield enhancement relative to the broad investment grade market through its spread-based selection methodology .
Investors acquire units in the passively managed, index-tracking fund rather than direct ownership of the underlying bonds .
The listing expands Invesco’s fixed income ETF range in Europe. The firm simultaneously launched a euro-denominated version of the strategy, the Invesco EUR IG Corporate Bond Yield Plus UCITS ETF .
| Product Name | Invesco USD IG Corporate Bond Yield Plus UCITS ETF Acc |
| ISIN | IE0005KNCL90 |
| SEDOL | BTCGMX5 |
| Issuer | Invesco |
| Currency | USD |
| Management Fee | 0.15% |
| Benchmark | iBoxx USD Corporates Investment Grade Spread Select Top 50% TCA Index |
Source: ETFWorld.co.uk
Subscribe to Our Newsletter
