Invesco actively managed bond ETFs
Invesco is listing two actively managed bond ETFs that will try and beat the market.
- Invesco Corporate Bond Factor ETF (ICBF)
- Invesco High Yield Bond Factor ETF (IHYF)
ICBF will mostly buy investment grade corporate bonds. However it can also buy other kinds of bonds, like junk bonds, and other kinds of fixed income products, like financial crisis bad guy CDOs. Bonds will be chosen based on three factors: volatility, yield and credit quality. The ideal bond for this fund is one with little volatility, high yield and great credit quality.
IHYF works much the same, but will focus on junk bonds. Invesco will not be bound by big ratings shops definition of what is investment grade compared with junk, the prospectus indicates.
iShares adds Kuwait
iShares is adding a Kuwait ETF to its famous country-focused ETF suite. The iShares MSCI Kuwait ETF (KWT) will track an index of companies judged to be from Kuwait by MSCI. The fund uses caps to ensure that the biggest companies don’t take too much of the fund, limiting the biggest company’s stake to 25% of the index. It also ensures that companies are liquid enough to be included.
The fund charges 0.74%.