Invesco Short Duration High Yield ETF (GTOH)

Overview

The fund described is an actively managed Exchange-Traded Fund (ETF) that primarily focuses on investment in high-yield, below investment grade fixed-income securities. Its strategy involves allocating at least 80% of its net assets, along with any funds borrowed for investment purposes, toward securities that, despite their higher risk compared to investment-grade assets, offer potentially higher yields. The goal of the fund is to provide investors with investment returns through exposure to the high-yield bond market, while employing active management strategies to navigate the complexities and risks associated with below investment grade investments. It operates as a non-diversified fund, meaning it may invest a larger portion of its assets in fewer issuers, potentially increasing risk but also allowing for potentially greater returns from those investments.

Products and Services

• High-Yield Fixed-Income Securities

Investment focuses on high-yield, below investment grade bonds. These securities are selected based on their potential to achieve higher income for investors, albeit with a higher risk compared to investment-grade bonds. The selection process leverages the fund's active management approach, aiming to identify bonds with the best risk-reward ratio.

• Derivatives and Similar Instruments

Part of the fund's assets may be invested in derivatives and other financial instruments that mimic the economic characteristics of high-yield fixed-income securities. This strategy is employed to enhance portfolio diversification, manage risk, and potentially increase returns. Derivatives may include futures, options, and swap agreements that are carefully selected as part of the fund's active management strategy.