About Invesco Variable Rate Investment Grade ETF (VRIG)

The Invesco Variable Rate Investment Grade ETF (VRIG) is an exchange-traded fund that provides exposure to investment-grade bonds with variable interest rates. The ETF aims to provide investors with a way to generate income while protecting against interest rate risk. It tracks the performance of the ICE BofAML Investment Grade Floating Rate Index, which includes U.S. dollar-denominated, investment-grade floating rate notes. These notes typically have coupon rates that reset periodically based on changes in short-term interest rates. By investing in these securities, the ETF seeks to provide a way for investors to earn a floating rate of income that can adjust with changes in the interest rate environment.

One of the advantages of investing in the VRIG ETF is its ability to provide a hedge against rising interest rates. Unlike traditional fixed-rate bonds, floating rate notes have coupon rates that adjust with changes in interest rates. This means that if interest rates rise, the coupon payments on the securities held by the ETF will also increase. As a result, investors can benefit from higher income payments when rates are on the rise. Additionally, the ETF's investment-grade focus helps to minimize credit risk, as it primarily holds bonds issued by investment-grade companies. This can provide investors with a level of safety and stability, as these issuers are considered to have a lower risk of default compared to lower-rated bonds.