Invesco Short Duration High Yield ETF

Invesco Short Duration High Yield ETF (GTOH) is an actively managed fund of junk bonds, or debt rated below investment grade, that aims to keep its duration, a gauge of interest-rate sensitivity, at three years or less. It pays monthly, with a trailing yield of 6.42% as of October 27, 2026. Drawbacks: a 0.48% expense ratio, above the 0.39% average for similar funds, and $12.8 million in assets as of July 31, 2026.

• Over the year to Oct 27, 2026, GTOH returned +1.3%, 8th of 8 among similar funds.
• Its worst full calendar year was 2024 (+6.5%); its best was 2023 (+11.2%).
• The deepest fall in its price history was 4.2% (Feb 2, 2023 to Feb 21, 2023), recovered by Jul 12, 2023.

As of Jul 31, 2026, the fund held 184 securities; the ten largest made up 14.91% of assets, and 6.11% sat in cash and money-market holdings.

The bonds mature in 4.4 years on average (weighted by size), with an average coupon of 6.62%.

• Over the three months to Jul 31, 2026, investors added a net $2.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.58%, +0.27%, -0.31%.

GTOH does not track an index. Its managers normally keep at least 80% of net assets in high-yield debt. The fund defines high yield as bonds rated B- to BB+, the upper tiers of junk, below the BBB- cutoff for investment grade. When rating agencies disagree, it uses the highest rating. Up to 10% may fall below B- after downgrades. It can also hold up to 20% in senior secured bank loans, which are backed by company assets and pay interest that resets as rates move. It may also own convertible bonds, asset-backed securities and foreign or emerging-market debt.

Invesco Advisers, Inc., the sub-adviser, picks bonds issuer by issuer. It weighs each company's business risks and management, its balance sheet and ability to generate cash, and how its bonds are priced against similar ones. It also considers broader sector and economic trends. Trading is heavy: turnover was 148%, so it replaced more than its whole portfolio in a year.

The managers aim to keep average duration at three years or less, though the target isn't guaranteed. Duration measures rate sensitivity: a three-year duration implies about a 3% price drop for each 1-percentage-point rise in rates. The fund may use swaps, options, futures and currency forward contracts to adjust that exposure. As of July 31, 2026, its only derivatives were four currency forwards with a near-zero net weight.

• GTOH charges 0.48% a year, versus an average of 0.39% for the similar funds below (5th of 8, cheapest first).
• The fee includes a 0.01% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $49 in the first year and $615 over 10 years (assuming a 5% annual return).

It pays monthly from short-duration junk bonds, with a trailing yield of 6.42% as of October 27, 2026, in exchange for added credit risk.

GTOH could add monthly income: its trailing yield was 6.42% as of October 27, 2026. Its deepest drop since its December 2022 launch was 4.2%, from February 2 to February 21, 2023, and it recovered by July 12, 2023, about 4.6 months later. Its weakest calendar year, 2024, still returned 6.92%. But the fund started after the 2008, 2020 and 2022 market lows, so its short record has not been tested by a severe credit downturn, when junk-bond prices tend to fall as default fears rise. Anyone drawing cash in such a year could lock in losses.

Costs run above average for similar funds: the 0.48% expense ratio works out to $49 in the first year and $615 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future returns, and a retirement plan needs to weigh the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).