Invesco Variable Rate Preferred ETF

Frequently Asked Questions About VRP

What does VRP invest in?

The Invesco Variable Rate Preferred ETF (the Fund) aims to mirror the performance of the ICE Variable Rate Preferred & Hybrid Securities Index. At least 90% of the Fund's assets are strategically allocated to U.S. dollar-denominated, floating and variable rate preferred stocks, as well as specific hybrid debt instruments. These securities, issued by U.S. corporations, encompass both investment-grade and below-investment-grade credit quality. The Index itself is designed to track similar U.S. dollar preferred stocks and hybrid securities, as deemed comparable by the Index Provider, issued in the U.S. market. Instead of replicating the entire Index, the Fund employs a "sampling" approach to fulfill its investment objective. Both the Fund and the underlying Index undergo monthly rebalancing. As of August 31, 2025, Morningstar Inc. awarded the Fund an exceptional 5-star overall rating (among 66 funds), a distinction it also held for its 3-year (out of 66 funds), 5-year (out of 58 funds), and 10-year (out of 38 funds) performance periods. These ratings are determined by a risk-adjusted return methodology, which prioritizes consistent performance and places greater emphasis on mitigating downside volatility. For comparative purposes, open-end mutual funds and exchange-traded funds are grouped together, with a minimum three-year operational history required for rating eligibility. The overall rating is a weighted average of the applicable three-, five-, and ten-year metrics, factoring in fees and expenses but excluding sales charges. Morningstar's system allocates 5 stars to the top 10% of funds in a category, 4 stars to the next 22.5%, 3 stars to the subsequent 35%, 2 stars to the following 22.5%, and 1 star to the bottom 10%. Ratings are subject to monthly adjustments. It is important to note that if historical fee waivers or expense reimbursements had not occurred, the Morningstar rating might have been lower, and ratings for other share classes could differ due to distinct performance characteristics. Morningstar's content is proprietary and strictly prohibited from being copied or distributed; its accuracy, completeness, or timeliness is not guaranteed, nor is Morningstar liable for any damages arising from its use. Investors should be aware that past performance is not a guarantee of future outcomes.

What is the expense ratio of VRP?

Invesco Variable Rate Preferred ETF (VRP) charges an expense ratio of 0.50%. This is the annual fee deducted from fund assets to cover management and operations.

What is VRP's dividend yield?

VRP's trailing-twelve-month yield is 6.15%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VRP?

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

What is the credit quality of VRP?

VRP'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 VRP?

Yield to maturity (YTM) is the total return you'd earn from VRP if every bond in the portfolio is held to maturity at the current price. VRP'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.