VRP
Invesco Variable Rate Preferred ETF
📎 Investment Objective
The Invesco Variable Rate Preferred ETF (VRP) seeks to track the investment results of an index that is composed of variable rate preferred securities.
Overview
ETF tracking Invesco Variable Rate Preferred ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Invesco Variable Rate Preferred ETF (VRP) seeks to track the investment results of an index that is composed of variable rate preferred securities.
🎯 Investment Strategy
The ETF employs a passive management approach and seeks to track the ICE BofA US All Capital Securities Index, which is composed of U.S. dollar-denominated preferred securities and securities that are functionally equivalent to preferred securities, including certain capital securities. The fund generally invests at least 80% of its total assets in the securities that comprise the underlying index.
✨ Key Features
- Provides exposure to variable rate preferred securities, which can help mitigate interest rate risk compared to fixed-rate preferred stocks
- Diversified portfolio of preferred securities issued by U.S. companies across various sectors
- Low expense ratio of 0.00%
- Potential for current income generation
⚠️ Primary Risks
- Credit risk: The fund is subject to the risk that an issuer of a security may be unable to make interest payments and repay principal in a timely manner
- Interest rate risk: Preferred securities are sensitive to interest rate changes, and the fund's performance may be adversely affected by rising rates
- Liquidity risk: The preferred securities market can experience periods of reduced liquidity, which may impact the fund's ability to sell securities at favorable prices
- Sector concentration risk: The fund's performance may be more volatile because it is more heavily weighted in certain sectors or industries
👤 Best For
The Invesco Variable Rate Preferred ETF may be suitable for investors seeking current income and exposure to variable rate preferred securities, which can help mitigate interest rate risk compared to fixed-rate preferred stocks. Investors should have a medium-term investment horizon and be willing to accept the credit and liquidity risks associated with preferred securities.
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