Invesco launches trio of floating rate note ETFs

TERs of 0.12% and 0.10%

Invesco has expanded its fixed income ETF range with the launch of three floating rate note ETFs in response to increasing demand for investors concerned about the rising rate environment.

The Invesco USD Floating Rate Note UCITS ETF - EUR Hedged and the Invesco EUR Floating Rate Note UCITS ETF will have total expense ratios (TERs) of 0.12%, while the Invesco USD Floating Rate Note UCITS ETF has a TER of 0.10%. The ETFs will track the respective Bloomberg Barclays FRN indices but the security must have a minimum issuance of $500m (or €500m), have at least two and a half years maturity and securities will be removed two and a half years after issuance to ensure the ETFs are still actively traded. Invesco said floating rate notes typically perform better than a fixed coup...