Invesco has seen more than US$1 billion flow into its US Treasury Bond 7-10 year UCITS ETF in just over a month after launch, making it one of the fastest-growing ETFs ever to be launched by Invesco in Europe.
The ETF was launched in mid-January as part of a suite of four US Treasury ETFs, which at the time of launch were the lowest cost US Treasury Bond ETFs in Europe. Invesco is offering investors a choice of funds with maturities of either 1-3 years, 3-7 years, 7-10 years or broad exposure across the full maturity spectrum of up to 30 years. The four funds are available to trade in USD or GBP on the London Stock Exchange and have ongoing charges of 0.06% per annum.
Paul Syms, Head of EMEA ETF Fixed Income Product Management at Invesco, said, “We have seen plenty of client interest in our range of low-cost US Treasury ETFs, but with the strongest demand coming in the 7-10 year maturity segment. We think this is due to a more subdued outlook for US interest rates, with investors feeling arguably more confident with the higher yields available further out the maturity spectrum. We expect this demand to continue given the wider market and risk environment and the competitive nature of these products. Highly rated bonds are valued for their ‘safe haven’ status and could be increasingly attractive for any investor who is concerned about recession or market volatility.”
Each of the four US Treasury Invesco ETFs are invested physically in the constituents of the relevant Bloomberg Barclays US Treasury Index. These indices comprise USD-denominated, fixed-rate, nominal debt issued by the US Treasury. A GBP-hedged version of the Invesco US Treasury Bond 7-10 Year UCITS ETF is also available on the LSE with an ongoing charge of 0.10% per annum.
