Invesco has launched an exchange-traded fund (ETF) investing in taxable US municipal bonds, which it said was the first of its kind in Europe.
The ETF is listed on the London Stock Exchange and Deutsche Boerse and is tracking the ICE BofAML US Taxable Municipal Securities Plus index.
“Municipal bonds offer higher yields, better average credit ratings and much lower default rates than US IG credit. We believe that unusual profile could make them attractive for many income investors,” Gary Buxton, head of EMEA ETFs and indexed strategies, said.