Invesco International Corporate Bond ETF

Invesco International Corporate Bond ETF (PICB) is an index fund that tracks the S&P International Corporate Bond Index. That index holds investment-grade bonds from companies outside the US, priced in currencies such as the euro, British pound and Canadian dollar. Because it avoids US-dollar bonds, its returns depend on foreign interest rates and exchange rates as well as credit. Its 0.50% expense ratio is well above the 0.17% average for similar bond funds.

• Over the year to Oct 27, 2026, PICB returned -3.9%, 7th of 8 among similar funds.
• Its 5-year annualized return was -2.3% and its 10-year +0.9%.
• In the 2020 COVID crash it fell 22.6% and regained its old high 2.8 months after the low.
• Its worst full calendar year was 2022 (-22.7%); its best was 2012 (+15.8%).
• The deepest fall in its price history was 37.1% (Dec 31, 2020 to Sep 27, 2022), not yet recovered.

As of Jul 31, 2026, the fund held 595 securities; the ten largest made up 5.32% of assets.

The bonds mature in 7.1 years on average (weighted by size), with an average coupon of 3.67%.

• Over the three months to Jul 31, 2026, investors added a net $4.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.67%, -1.78%, -0.18%.

PICB aims to match the S&P International Corporate Bond Index, which is built by S&P Dow Jones Indices. The index holds investment-grade corporate bonds from issuers outside the US. Investment-grade means the bonds are rated as having a fairly low risk of default. Each bond must be priced in one of nine Group of Ten (G10) currencies other than the US dollar: the Australian, Canadian and New Zealand dollars, the British pound, the euro, the Japanese yen, the Norwegian krone, the Swedish krona and the Swiss franc. As of December 31, 2025, the index held 622 bonds.

The fund doesn't buy every bond. It uses sampling: it holds a representative slice of the index and keeps at least 80% of its assets in index bonds. As of July 31, 2026, it had 595 holdings, and the 10 largest made up just 5.32% of assets. The biggest were NTT Finance (0.65%), Toronto-Dominion Bank, Bank of Montreal and Royal Bank of Canada. About 92% was in company bonds and about 6% in foreign government bonds. It leans toward financial companies when the index does. Portfolio turnover was 49%.

Bond prices fall when interest rates rise. The average bond had 7.1 years to maturity and paid a 3.67% coupon (its annual interest rate). The fund is valued in dollars, so a stronger dollar lowers the value of its foreign-currency bonds. It held no derivatives as of July 31, 2026.

• PICB charges 0.5% a year, versus an average of 0.17% for the similar funds below (7th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $629 over 10 years (assuming a 5% annual return).

PICB adds corporate bonds priced in currencies other than the dollar, which can move differently from US stocks and US-dollar bonds.

PICB could add bonds from France, Canada, the UK and the Netherlands to a portfolio built mostly on US assets, along with exposure to other currencies. It pays monthly, and its trailing 12-month yield was 3.65% as of October 27, 2026. It launched in 2010, so it has no record from the 2008 crisis. In March 2020 it fell 22.6% in under two weeks, then recovered by June 10.

It lost 22.8% in 2022. Its deepest drop, 37.1% from December 31, 2020 to September 27, 2022, had still not been made up as of October 27, 2026. Selling shares to cover spending in a year like 2022 would have locked in large losses. Its 0.50% fee also takes a bigger share of that yield than cheaper peers' fees do. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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