Invesco VRDO Tax-Free ETF (PVI)

Invesco VRDO Tax-Free ETF (VRDO): Summary

Profile: VRDO is an actively managed exchange-traded fund (ETF) that invests primarily in investment-grade tax-free municipal bonds. It focuses on maximizing tax-free income for investors in high federal income tax brackets. VRDO has a diversified portfolio across various sectors and maturities, seeking to limit interest rate risk.

Objective: The primary objective of VRDO is to provide investors with current income exempt from federal and most state and local income taxes.

Issuer: Invesco Ltd. is a global investment management firm with over $1.5 trillion in assets under management. Invesco has a strong reputation and a long track record of managing fixed-income investments.

Market Share: VRDO is a relatively small ETF in the tax-free municipal bond ETF space, with approximately 0.2% of the market share.

Total Net Assets: As of October 26, 2023, VRDO has approximately $285 million in net assets.

Moat: VRDO benefits from Invesco's expertise in managing fixed-income investments. The ETF also has a low expense ratio compared to its peers, making it an attractive option for cost-conscious investors.

Financial Performance: VRDO has a strong track record of performance, outperforming its benchmark index over the past 1, 3, and 5 years. However, it is important to remember that past performance does not guarantee future results.

Growth Trajectory: The demand for tax-free municipal bonds is expected to remain strong, which could benefit VRDO's growth prospects.

Liquidity: VRDO has an average trading volume of approximately 5,000 shares per day, which is considered low. The bid-ask spread is also relatively wide, which could impact trading costs.

Market Dynamics: Factors such as interest rates, economic conditions, and investor sentiment can affect the performance of VRDO.

Competitors: VRDO's main competitors include the iShares National AMT-Free Muni Bond ETF (MUB) and the Vanguard Tax-Exempt Bond ETF (VTEB).

Expense Ratio: The expense ratio for VRDO is 0.25%, which is lower than the average for its peers.

Investment Approach: VRDO seeks to maximize tax-free income by investing in a diversified portfolio of investment-grade municipal bonds. The ETF does not track a specific index.

Key Points:

• Invests in investment-grade municipal bonds
• Seeks to maximize tax-free income
• Actively managed by Invesco
• Low expense ratio

Risks:

• Interest rate risk
• Market risk
• Credit risk

Who Should Consider Investing: VRDO is a good option for investors in high federal income tax brackets who are looking for tax-free income.

Fundamental Rating Based on AI: 7/10

VRDO has a strong track record of performance, a low expense ratio, and experienced management. However, the ETF's low trading volume and wide bid-ask spread could be a concern for some investors. Overall, VRDO is a solid option for investors seeking tax-free income.

Resources:

• Invesco VRDO Tax-Free ETF website: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=VRDO
• Morningstar: https://www.morningstar.com/etfs/arcx/vrdo/quote

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.