Invesco Corporate Income Value ETF

Data updated: 2020-01-29

C000201204 — Invesco Corporate Income Value ETF. Corporate Bond · $12.23M AUM · 0.23% expense ratio. Holdings, fees, performance and SEC filings.

C000201204 Fund Overview

Invesco Corporate Income Value ETF is a US ETF managed by Invesco Exchange-Traded Self-Indexed Fund Trust, categorised as Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

C000201204 Investment Objective and Strategy

Invesco Corporate Income Value ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Invesco Exchange-Traded Self-Indexed Fund Trust.

Investment objective

The Invesco Corporate Income Value ETF (the “Fund”) seeks to track the investment results (before fees and expenses) of the Invesco High Yield Value Index (the “Underlying Index”).

Principal investment strategy

The Fund generally will invest at least 80% of its total assets in securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, Invesco Indexing LLC (the Index Provider) compiles and maintains the Underlying Index, which is designed to provide exposure to higher value, U.S. high yield bonds (commonly known as junk bonds) and bonds with the lowest credit rating considered investment grade. Higher value bonds are characterized as those with higher yields that may provide greater returns in certain markets. In addition, the Underlying Index seeks to incorporate securities with the highest quality scores (within the eligible universe of U.S. bonds) as determined by the Index Provider using its methodology described below. The Index Provider is affiliated with Invesco Capital Management LLC, the Funds investment adviser (the Adviser), and Invesco Distributors, Inc., the Funds distributor (the Distributor).

In selecting components for inclusion in the Underlying Index, the Index Provider begins with an investment universe of all U.S. dollar-denominated bonds issued by U.S. companies. To be eligible for inclusion in the Underlying Index, bonds must (i) be rated higher than B- and lower than or equal to BBB- (or equivalent) by S&P Global Ratings, a division of S&P Global Inc. (S&P), Fitch Ratings Inc. (Fitch) or Moodys Investors Service, Inc. (Moodys) credit rating agencies; (ii) have at least $400 million outstanding, with only the largest bond from each issuer eligible; (iii) have at least two years, and no more than ten years, until final maturity; and (iv) make coupon payments. Qualifying securities include: fixed rate, bullet bonds, sinking funds, amortizing, puttable, extendable, callable, and step-up bonds with schedules known at issuance.

Securities issued in accordance with Rule 144A (Rule 144A securities) under the Securities Act of 1933, as amended (Securities Act), bonds registered with the Securities and Exchange Commission (SEC), publicly underwritten medium-term notes and Eurodollar bonds are all eligible for inclusion in the Underlying Index. The Index Provider assigns a quality adjusted value score (QAV Score) to each eligible bond, which is calculated based on a combination of value and quality factors or characteristics. With respect to value, a value score (Value Score) is assigned to each eligible bond based on the bonds option adjusted spread (OAS). Specifically, the Value Score for each bond is calculated as its percentile ranked OAS within its sector and credit rating category. With respect to credit category, each rating agencys rating is converted into a numerical value and a bonds credit factor score is calculated as an equally-weighted average of the numerical scores of each agency that has rated the bond.

The bond is then assigned to one of six credit rating categories, as established by the Index Provider. Bonds are also separately ranked by OAS solely within their credit rating category. If fewer than three bonds are available within a sector or credit rating, then the Value Score for all bonds in the grouping is replaced with the percentile rank based on credit rating only. If fewer than three bonds are available within a credit rating category, then the bonds in that credit rating category are removed from Underlying Index eligibility. The Value Scores are then standardized. The Index Provider also calculates a quality score (Quality Score) for each eligible bond, which is calculated based on such bonds maturity and credit rating. With respect to maturity, each bond is scored based on the number of years remaining to maturity, with bonds having fewer years to maturity receiving higher scores.

With respect to credit factor score, each rating agencys rating is converted into a numerical value and a bonds credit factor score is calculated as an equally-weighted average of the numerical scores of each agency that has rated the bond. The maturity and credit factors for each bond are standardized across the universe of eligible bonds, and the Quality Score for each bond is computed as an equally-weighted combination of these two factors. Once a Value Score and Quality Score are assigned to eligible bonds, the QAV Score is calculated as a weighted-average combination of the two scores, with 90% and 10% weights applied to the Value Score and Quality Score, respectively. All eligible securities are ranked by the QAV Score. Initially, bonds with QAV Scores in the top 40% of eligible securities are selected for inclusion in the Underlying Index.

At each monthly Underlying Index rebalance, any eligible security with a QAV Score in the top 30% of eligible securities is added to the Underlying Index, and current Underlying Index components with a QAV Score in the bottom 50% of eligible securities are removed. The Underlying Index will typically include between 100-300 securities, which are equally weighted. The Fund does not purchase all of the securities in the Underlying Index; instead, the Fund utilizes a sampling methodology to seek to achieve its investment objective. The Fund is non-diversified and therefore is not required to meet certain diversification requirements under the Investment Company Act of 1940, as amended (the 1940 Act). Concentration Policy. The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries.

The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries.

C000201204 Costs and Fees

C000201204 costs about $23 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 0.23%
  • Gross expense ratio: 0.23%
  • Portfolio turnover: 114%
  • Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000201204 Cashflows

Over the 12 months to 2019-11, Invesco Corporate Income Value ETF had net inflows of $0, from monthly SEC N-PORT filings.

MonthNet flow
2019-11$0
2019-10$0
2019-09$0

C000201204 Debt Constituents

No individual debt constituents are reported in Invesco Corporate Income Value ETF's latest SEC N-PORT filing.

C000201204 Prospectus and SEC Filings

Official Invesco Corporate Income Value ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Corporate Bond funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.