At a glance
IIGD charges 0.13% a year, below the 0.15% average of the 7 funds most like it (the 5th cheapest of 8). It has $26.7M in assets, the 8th largest of that group; it paid 4.38% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.4% with distributions reinvested, 7th of those 8 funds; over three years it returned +5.3% a year. At its worst it fell 8.6% in the 2020 crash (S&P 500: 33.7%) and 9.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 22 months after the lows. Its ten largest positions make up 7.1% of the fund, out of 164 in all.
The short version
Invesco Investment Grade Defensive ETF (IIGD) tracks the Invesco Investment Grade Defensive Index: about 160 U.S. corporate bonds, held in equal amounts and chosen for higher credit ratings and shorter maturities. It pays monthly, yielding 4.38% over the 12 months to October 27, 2026. It costs 0.13% a year, more than Vanguard's VCSH (0.03%), and with $26.7 million in assets as of August 31, 2026, it is the smallest in its peer group.
Price history
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IIGD +0.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IIGD official prospectus, to Dec 31, 2024 | — | +4.04% | — | +1.34% | — | +2.42% |
| IIGD price data to Oct 27, 2026 | 0.0% | +0.4% | +5.3% | +1.7% | — | +2.7% |
- Over the year to Oct 27, 2026, IIGD returned +0.4%, 7th of 8 among similar funds.
- Its 5-year annualized return was +1.7%.
- In the 2020 COVID crash it fell 8.6% and regained its old high 1.1 months after the low.
- Its worst full calendar year was 2022 (-7.3%); its best was 2019 (+7.4%).
- The deepest fall in its price history was 11.4% (Aug 3, 2021 to Oct 20, 2022), recovered by Aug 14, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.1% | — |
| 2025 | +7.2% | — |
| 2024 | +4.0% | +4.04% |
| 2023 | +5.8% | +5.67% |
| 2022 | -7.3% | -7.34% |
| 2021 | -1.4% | -1.37% |
| 2020 | +6.3% | +6.34% |
| 2019 | +7.4% | +7.63% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 4.7% over that stretch · deepest drop along the way 8.6%, back to its old high 1.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9% over that stretch · deepest drop along the way 9.3%, back to its old high 21.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8700 | |
| 2025 | $1.0700 | +5.9% |
| 2024 | $1.0100 | +9.8% |
| 2023 | $0.9200 | +124.4% |
| 2022 | $0.4100 | -12.8% |
| 2021 | $0.4700 | -45.3% |
| 2020 | $0.8600 | +32.3% |
| 2019 | $0.6500 |
What's inside
As of Aug 31, 2026, the fund held 164 securities; the ten largest made up 7.14% of assets.
| Holding | Weight | |
|---|---|---|
| Momentive Performance Materials Inc. Bonds and notes | 0.74% | |
| Parker-Hannifin Corp. Bonds and notes | 0.72% | |
| Home Depot, Inc. (The) Bonds and notes | 0.72% | |
| Truist Bank Bonds and notes | 0.71% | |
| State Street Corp. Bonds and notes | 0.71% | |
| Archer-Daniels-Midland Co. Bonds and notes | 0.71% | |
| Regions Financial Corp. Bonds and notes | 0.71% | |
| Altria Group, Inc. Bonds and notes | 0.71% | |
| RGA Global Funding Bonds and notes | 0.70% | |
| Pricoa Global Funding I Bonds and notes | 0.70% | |
| Norfolk Southern Corp. Bonds and notes | 0.70% | |
| MassMutual Global Funding II Bonds and notes | 0.70% | |
| Halliburton Co. Bonds and notes | 0.70% | |
| Entergy Texas, Inc. Bonds and notes | 0.70% | |
| Ralph Lauren Corp. Bonds and notes | 0.70% |
By country
United States 96.26%Ireland 1.3%United Kingdom 0.67%Luxembourg 0.58%By issuer
Companies 98.8%The bonds mature in 3.5 years on average (weighted by size), with an average coupon of 3.72%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $3.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.06%, -0.26%, +0.18%.
How it works
IIGD aims to match the Invesco Investment Grade Defensive Index, before fees, rather than beat it. The index, run by Invesco affiliate Invesco Indexing LLC, starts with U.S.-dollar bonds issued by U.S. companies. A bond qualifies only if its average rating from S&P, Moody's and Fitch is above BBB-, the lowest investment-grade rating (investment grade signals relatively low default risk). It must also pay interest, have at least $600 million outstanding and mature in two to ten years. Only each company's largest bond counts.
Each bond gets a "quality score" that weighs credit rating and time to maturity equally, with shorter bonds scoring higher. Each month, new bonds ranking in the top 30% join, and current members stay while they rank in the top 50%. Every bond gets an equal weight, so the 10 largest holdings made up just 7.14% of assets as of August 31, 2026.
Rather than owning every bond in the index, the fund holds a sample: 164 bonds as of August 31, 2026, averaging 3.5 years to maturity. Sampling can make returns drift from the index. Turnover, a gauge of how much of the portfolio is replaced in a year, was 68%. The fund may also own Rule 144A bonds, which are not publicly traded and can be harder to trade.
What it really costs
- IIGD charges 0.13% a year, versus an average of 0.15% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $13 in the first year and $166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IIGD | $13 | $42 | $73 | $166 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its higher-rated corporate bonds, averaging 3.5 years to maturity as of August 31, 2026, have made it far steadier than stocks, though it has still had losses.
IIGD has moved far less than stocks, but it can still fall. It launched in July 2018, so it has no 2008 record. In the 2020 COVID crash it dropped 8.6% between March 4 and March 20, 2020, then recovered in about a month. The 2022 bear market hit harder: it lost 7.34% that year, its worst calendar year, and its deepest drop, 11.4% from August 2021 to October 2022, took about 22 months to recover. Cashing out near that low would have locked in the loss.
The fund pays income monthly; its yield over the past 12 months was 4.38% as of October 27, 2026. It costs 0.13% a year, or $13 on $10,000 in the SEC's standard one-year example, more than VCSH (0.03%) or IGSB (0.04%). Past results don't predict future returns, and a retirement plan has to consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income from higher-rated U.S. corporate bonds; the trailing 12-month yield was 4.38% as of October 27, 2026.
- Investors who prefer spreading money evenly: 164 bonds in roughly equal amounts, the largest just 0.74% of assets as of August 31, 2026.
- Investors wanting to skip the lowest-rated investment-grade bonds and long maturities: the index requires average ratings above BBB- and two to ten years to maturity.
Look elsewhere if
- Cost-focused investors: VCSH (0.03%) and IGSB (0.04%) hold bonds of similar average maturity for a fraction of IIGD's 0.13% expense ratio.
- Investors wary of small funds: IIGD had $26.7 million in assets as of August 31, 2026, the smallest of eight comparable funds.
- Those seeking something that gains in crashes: IIGD fell 8.6% in March 2020 and 9.3% in the 2022 bear market, not recovering until July 2024.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IIGD this fund | 3.5 yrs | 0.13% | $26.7M | +0.4% | +5.3% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| FSIG First Trust Limited Duration Investment Gra… | 3.8 yrs | 0.55% | $1.51B | +1.1% | +5.2% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| SLQD iShares 0-5 Year Investment Grade Corporate… | 2.6 yrs | 0.06% | $2.38B | +1.9% | +5.3% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| SPIB SPDR Portfolio Intermediate Term Corporate … | 5.6 yrs | 0.04% | $11.57B | 0.0% | +6.1% |
| FLRN SPDR Bloomberg Investment Grade Floating Ra… | 2 yrs | 0.15% | $2.97B | +4.4% | +5.3% |
Questions investors ask
Does IIGD pay monthly dividends?
Yes. IIGD pays income every month. Over the 12 months to October 27, 2026, it paid about $1.05 per share, a yield of 4.38%. The money comes from interest on its corporate bonds, whose average coupon (the interest rate a bond pays on its face value) was 3.72% as of August 31, 2026. Payments can change as bonds mature and the fund replaces them with bonds paying different rates.
Is IIGD a safe investment?
Not risk-free, though its price has been fairly steady. IIGD lost 7.34% in 2022, its worst calendar year, and its deepest drop, 11.4% from August 2021 to October 2022, took about 22 months to recover. Bond prices fall when interest rates rise, and companies can be downgraded or default. The fund is also small, with $26.7 million in assets as of August 31, 2026, and small funds are more likely to close.
What's the difference between IIGD and VCSH?
Mainly cost and size. Both held corporate bonds averaging 3.5 years to maturity as of August 31, 2026. IIGD picks bonds by a quality score, holds them in equal amounts and charges 0.13% a year versus VCSH's 0.03%. VCSH had $51.7 billion in assets against IIGD's $26.7 million. Over one year, VCSH returned 1.9% (to October 30, 2026) and IIGD 0.4% (to October 27, 2026); over three years, 5.7% versus 5.3% a year.
What is IIGD's expense ratio?
IIGD's expense ratio is 0.13% a year, according to its prospectus filed December 18, 2025. In the SEC's standard example, $10,000 earning 5% a year would cost about $13 over one year, $73 over five and $166 over ten. That is slightly below the 0.15% average of comparable funds, which includes the pricier FSIG (0.55%), but above large peers such as VCSH (0.03%), IGSB (0.04%) and SLQD (0.06%).
What does IIGD invest in?
IIGD held 164 bonds, nearly all issued by U.S. companies, as of August 31, 2026. Because holdings are equally weighted, the largest each made up only about 0.7% of assets: bonds from Momentive Performance Materials, Parker-Hannifin, Home Depot, Truist Bank and State Street. Financial firms such as Truist, State Street and Regions Financial show up often, and the prospectus noted significant financials exposure as of August 31, 2025. Cash was 1.46%.