Navigating Fixed Income: Where To Go With Volatile Rates And Low Yields


We all know that return can be tough to come by lately. In addition, interest rates seem more uncertain than ever. While this dichotomy can be intimidating, there are still opportunities to be seized in today’s bond markets.

In the next webcast, Navigating Fixed Income: Where To Go With Volatile Rates And Low Yields, Brian McMullen, Fixed Income ETF Strategist, Invesco, will explore ways in which investors can use bond ETFs to navigate these difficult times and access potentially exciting opportunities.

For example, the Invesco Total Return Bond ETF (GTO) takes an active approach to navigate today’s fixed income market. GTO can help medium term bond investors looking for monthly income and total return opportunities. The fund will invest at least 80% of its total assets in fixed income instruments of various maturities and of all credit qualities.

The Invesco Senior Loan ETF (BKLN) tracks the investment results of the S & P / LSTA US Leveraged Loan 100 Index. The fund’s advisor and sub-advisor define senior loans to include loans called leveraged loans, bank loans and / or loans at variable rate. Senior Loans have a variable interest rate component, which fluctuates with market rates. The coupons on these loans adjust to short-term rate movements, so if rates go up, so will coupon rates, which can also happen during times of inflation.

The Invesco Preferred Floating Rate ETF (VRP) is another income generating idea. It is one thing to seek a higher return, but it is quite another to get quality exposure. This is where Preferred Securities become a preferred option for both and more. The VRP is based on the ICE Variable Rate Preferred & Hybrid Securities Index, which is designed to track the performance of US dollar floating rate and variable rate preferred shares and below the investment grade, as well as certain types of securities. hybrids determined by the supplier index, comparable to preferred stocks, which are issued by companies in the US market.

Financial advisors who want to learn more about fixed income strategies can register for the Monday, September 20 webcast here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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