Alternative Investments/ESG: Invesco Launches Global High Yield ESG ETF
This is Invesco’s 26th fixed income ETF.
Invesco has introduced a new ETF, the Invesco Global High Yield Corporate Bond ESG UCITS ETF, that aims to tap into the growing demand for both high yield and ESG-focused ETFs. The ETF which expands Invesco’s fixed income range, is listed on the London Stock Exchange. (ETF Stream)
Invesco Global High Yield Corporate Bond ESG UCITS ETF
The ETF tracks the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond index, and excludes securities with poor ESG ratings or connections to controversial sectors.
The fund has an annual charge of 0.25%, and is Invesco’s 26th fixed income ETF, making up over 20% of the firm’s ETF offerings.
Invesco expects the demand for both high yield and ESG-focused ETFs to continue in the coming year, with a potential increase in demand for corporate bond exposures. It is notable that bond funds saw almost 40% of ETF inflows in 2022, while ESG ETFs continued 60% of overall market flows.
Paul Syms, head of EMEA fixed income ETF product management at Invesco, commented: “Demand for fixed income ETFs has grown substantially in recent years, partly the result of greater understanding from investors but also because of the availability of new products.
“We believe the pick-up in corporate bond flows seen towards the end of the year could continue in 2023 as a change in Federal Reserve focus away from fighting inflation and towards stimulating growth may support credit and high yield.”
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, added: “It is clear from market data that investors are increasingly choosing ETFs for the fixed income components of their portfolios.
“Investor demand has driven Invesco’s product development, leading to our expanded range of fixed income ETFs, with low-cost core exposures alongside those that provide access to more innovative segments of the market.”
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