VRIG ETF

Invesco Variable Rate Investment Grade ETF provides exposure to floating rate investment grade credit securities. VRIG ETF has delivered modest returns since October, outperforming expectations due to the U.S. economy's solid growth. However, a comparison against peers shows VRIG has underperformed, with higher credit risk, but lower returns compared to JAAA.

VRIG's consistent and steady returns may continue in the current high interest rate environment. The anticipation of a rapid change in Fed policy has diminished due to rising inflation in the US, making floating rate investments more appealing. The fund has the potential to generate an additional 5% return over the next year.

Investors looking for momentum may be interested in keeping an eye on the Invesco Variable Rate Investment Grade ETF VRIG. The fund recently reached a new high for the year and has increased by 2% from its lowest price of $24.76 per share in the past year.

Invesco Variable Rate Investment Grade ETF offers stable income and low portfolio duration for investors concerned about an uncertain inflation outlook. VRIG primarily invests in high-grade variable rate instruments and has a current yield of 6.2%. The fund's holdings are diverse and predominantly consist of U.S. Treasury Floating Rate Notes and high-grade corporate bonds.

VRIG is an actively managed fixed income ETF that invests primarily in high-grade variable rate instruments. Despite holding collateral with longer maturities, VRIG maintains a low duration profile due to its floating-rate nature, reducing sensitivity to interest rate changes. The fund's portfolio is diversified with a focus on high-grade bonds, treasuries, and securitization sectors to mitigate credit spread risk. Single issuer concentration is kept minimal.

The overwhelming majority anticipate that rate hikes will eventually dissipate, but there's no telling what the U.S. Federal Reserve will do. As such, staying mobile in the fixed income market is important.