Invesco has expanded its fixed income ETF range with the launch of a sterling corporate bond product.
The Invesco GBP Corporate Bond UCITS ETF (IGCB) is listed on the London Stock Exchange with a total expense ratio of 0.10%
IGCB tracks the Bloomberg Barclays Sterling Liquid Corp index which measures investment grade, sterling-denominated corporate debt.
The credit rating breakdown varies from AAA to BBB. BBB currently has the biggest weighting with 54.6%. Similarly for maturity breakdown, 5-10yr duration is the largest exposure with 26.9% ahead of 10-20yr with 24.2% and 20+yr with 23.2%.
The launch comes two weeks after the company unveiled a similar product but with an environmental, social and governance (ESG) tilt, Invesco GBP Corporate Bond ESG UCITS ETF (IGBE).
Paul Syms (pictured), head of ETF fixed income product management, EMEA, at Invesco, commented: “IGCB offers a low cost way to gain exposure to this important segment of the market, which could be increasingly appealing if we continue to see a widening of spreads versus government bonds.”