Invesco Bond Fund

Frequently Asked Questions About VBF

What does VBF invest in?

The Invesco Bond Fund operates as a closed-end mutual fund dedicated to fixed-income investments, originated by Invesco Ltd. Its management responsibilities are shared across multiple Invesco subsidiaries globally, including Invesco Advisers, Inc., INVESCO Asset Management (Japan) Limited, INVESCO Asset Management Deutschland GmbH, INVESCO Asset Management Limited, Invesco Hong Kong Limited, INVESCO Senior Secured Management, Inc., and Invesco Canada Ltd. The fund primarily allocates its capital to high-quality, fixed-rate corporate debt instruments within the broader fixed income markets. To assess its performance, the Barclays Baa U.S. Corporate Bond Index serves as its primary benchmark. Established in 1970, this U.S.-domiciled fund was previously known as Invesco Van Kampen Bond Fund.

What is the expense ratio of VBF?

Invesco Bond Fund (VBF) charges an expense ratio of 0.56%. This is the annual fee deducted from fund assets to cover management and operations.

What is VBF's dividend yield?

VBF's trailing-twelve-month yield is 5.55%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VBF?

Effective duration measures VBF's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VBF's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VBF?

VBF's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VBF?

Yield to maturity (YTM) is the total return you'd earn from VBF if every bond in the portfolio is held to maturity at the current price. VBF's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.