Invesco Bloomberg Enhanced Fallen Angels ETF

The Invesco Bloomberg Enhanced Fallen Angels ETF is an exchange-traded fund that seeks to track the performance of the Bloomberg U.S. High Yield Enhanced Fallen Angels Index, before fees and expenses. It primarily invests at least 80% of its assets in U.S. dollar-denominated, fixed-rate corporate bonds that were once rated investment grade by agencies like Moody's, S&P, or Fitch but have since been downgraded to high yield, or 'junk' status, known as fallen angels. Launched on November 15, 2007, the ETF offers exposure to this unique segment of the high yield bond market, which often features bonds from sectors like utilities, financials, and automotive, including notable holdings such as PG&E Corp., Synchrony Financial, Ally Financial, and Ford Motor Co. These bonds are selected based on rigorous index methodology emphasizing recent downgrades, potentially capturing post-downgrade price dynamics while maintaining a generally stronger credit profile compared to broader high yield markets. In the financial markets, it provides investors with targeted access to fallen angel bonds, blending income generation from high yield securities with the historical tendency of these assets for credit recovery and rebound potential.