For professional investors only
Fixed income ETFs have captured 52% of all flows into the European ETF market so far this year , as a broad range of investors begin to embrace the simplicity of the ETF structure. Record low interest rates and bond yields are also pushing investors to focus on how fees cut into potential returns, shifting demand to low cost ETF solutions.
The ETF structure was validated during the height of the crisis in March. ETFs continued to trade when underlying bond markets seized up, and ETF investors benefitted from multiple sources of liquidity. Fixed income ETFs proved to be resilient during the COVID-19 crisis and became a useful price discovery vehicle for the bond market.
Fixed income ETFs offer investors low cost, transparent, and efficient access to all types of bonds, and have passed the ultimate liquidity test.
Read the full paper on where ETFs make sense in fixed income
https://www.invesco.com/uk/en/fixed-income/etf.html#etfs-vs-bonds
Investment risks
Investment strategies involve numerous risks. Investors should note that the price of your investment may go down as well as up. As a result you may not get back the amount of capital you invest.
Important information
This document contains information that is for discussion purposes only, and is intended only for professional investors in Ireland and the UK. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.
Data as at 14/10/2020 unless otherwise stated.
This document is marketing material and is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
This document has been communicated by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland.
EMEA8763/2020
Source: Bloomberg, Invesco, 31 Aug 2020
