Invesco launches first municipal bond ETF in Europe with eye on income investors

'Munis' offer lower default rates than US investment grade credit

clock • 2 min read

Invesco has launched the first ETF in Europe providing exposure to taxable municipal bonds, an asset class that which has been "difficult for investors to access", according to the firm.

The Invesco US Municipal Bond UCITS ETF will provide investors with higher yields than are generally available from the US investment grade credit market without taking on additional credit risk, Invesco said. Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: "This launch opens the door to an asset class that until now has been difficult for investors to access. European ETF market opens 2021 breaking €1trn barrier "Municipal bonds, or ‘munis' for short, offer higher yields, better average credit ratings and much lower default rates than US investment grade cr...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Deep Dive: Multi-asset managers split on benefits of US Treasuries

Deep Dive: Multi-asset managers split on benefits of US Treasuries

Some opting for 'better' European options

Eve Maddock-Jones
clock 12 April 2024 • 4 min read
Pictet AM nears peak AT1 bonds allocation as banks recover from 2023 crisis

Pictet AM nears peak AT1 bonds allocation as banks recover from 2023 crisis

'Everybody hated the asset class'

Eve Maddock-Jones
clock 12 April 2024 • 3 min read
Federated Hermes' Fraser Lundie: Honey, I shrunk the credit market

Federated Hermes' Fraser Lundie: Honey, I shrunk the credit market

Valuation and uncertainty struggle

Fraser Lundie
clock 09 April 2024 • 4 min read
Trustpilot