PGHY Profile
The Invesco Global Short Term High Yield Bond ETF is designed to provide investors with exposure to short-term high yield bonds. Under normal market conditions, the fund allocates at least 80% of its total assets to securities that are components of the underlying index. This index focuses on bonds issued by corporations and sovereign or quasi-government entities that are denominated in U.S. dollars.
The underlying index targets bonds rated below "investment grade," reflecting a focus on high yield or "junk" bonds. These bonds are selected based on several criteria, including that they must not be marked as defaulted by any rating agency, have three years or less to maturity, and possess a minimum outstanding amount of $250 million. Additionally, these bonds must feature a fixed coupon, ensuring consistent income payments.
By concentrating on short-term high yield bonds, the fund aims to provide investors with higher income potential compared to investment-grade bonds, while managing interest rate risk associated with longer maturities. The focus on short-term bonds helps mitigate the impact of interest rate fluctuations and credit risk associated with longer-term high yield securities.
The Invesco Global Short Term High Yield Bond ETF seeks to balance higher income opportunities with a shorter duration profile. This approach is designed to offer investors exposure to the high yield bond market while aiming to reduce volatility and interest rate risk through its short-term investment horizon. The funds strategy allows investors to tap into potentially higher returns while managing the risks inherent in the high yield bond sector.
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