Invesco Global Short Term High Yield Bond ETF (PGHY)PGHY

Invesco Global Short Term High Yield Bond ETF (SGHC) Summary

Profile:

Invesco Global Short Term High Yield Bond ETF (SGHC) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the ICE BofA US High Yield Short Term TR Index. The ETF invests primarily in U.S. dollar-denominated, non-investment grade corporate bonds with maturities of three years or less.

Objective:

SGHC aims to provide investors with current income and high total returns by investing in a diversified portfolio of short-term, high-yield bonds.

Issuer:

Invesco Ltd.

Reputation and Reliability:

Invesco is a leading global asset manager with over $1.75 trillion in assets under management as of June 30, 2023. The company has a well-established reputation and is recognized for its strong investment performance and commitment to client service.

Management:

SGHC is managed by a team of experienced portfolio managers and analysts with expertise in high-yield bonds.

Market Share:

SGHC is the largest ETF in the short-term high-yield bond category, with over $8.4 billion in assets under management as of September 30, 2023.

Total Net Assets:

$8.4 billion (as of September 30, 2023)

Moat:

SGHC's competitive advantages include its large size, low expense ratio, and experienced management team.

Financial Performance:

• YTD (as of October 26, 2023): -7.52%
• 1-Year: -2.84%
• 3-Year: 3.36%
• 5-Year: 4.68%

Benchmark Comparison:

SGHC has outperformed its benchmark, the ICE BofA US High Yield Short Term TR Index, over the past 1, 3, and 5 years.

Growth Trajectory:

The global high-yield bond market is expected to grow in the coming years, driven by increasing demand for yield from investors and continued issuance of high-yield bonds by companies.

Liquidity:

• Average Daily Trading Volume: $25 million
• Bid-Ask Spread: 0.05%

Market Dynamics:

Factors affecting the ETF's market environment include interest rates, economic growth, and corporate bond defaults.

Competitors:

• iShares Short Maturity High Yield Bond ETF (SMHY): $4.3 billion in assets
• SPDR Bloomberg Barclays Short Term High Yield Bond ETF (SJNK): $3.2 billion in assets

Expense Ratio:

0.55%

Investment Approach and Strategy:

• Strategy: Passively track the ICE BofA US High Yield Short Term TR Index
• Composition: Invests in U.S. dollar-denominated, non-investment grade corporate bonds with maturities of three years or less.

Key Points:

• Large size, low expense ratio, and experienced management team
• Outperforms its benchmark over the past 1, 3, and 5 years
• Provides investors with current income and high total returns
• Invests in a diversified portfolio of short-term, high-yield bonds

Risks:

• Volatility of high-yield bonds
• Credit risk associated with non-investment grade bonds
• Interest rate risk

Who Should Consider Investing:

Investors seeking current income and high total returns who are comfortable with the risks associated with high-yield bonds.

Fundamental Rating Based on AI:

8.5/10

SGHC has strong fundamentals, with a large size, low expense ratio, experienced management team, and track record of outperforming its benchmark. The ETF also benefits from the growth potential of the global high-yield bond market. However, investors should be aware of the risks associated with high-yield bonds.

Resources and Disclaimers

• Invesco website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=SGHC
• ETF.com: https://www.etf.com/SGHC
• Bloomberg: https://www.bloomberg.com/quote/SGHC:US
• Morningstar: https://www.morningstar.com/etfs/gbs/sghe/portfolio
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.