Invesco Floating Rate Municipal Income ETF

Invesco Floating Rate Municipal Income ETF (PVI) tracks the ICE US Municipal AMT-Free VRDO Constrained Index: tax-exempt state and local bonds whose rates reset daily, weekly or monthly. Price swings have been tiny (no calendar year from 2015 through 2024 lost more than 0.24%), and it pays monthly income meant to be free of federal tax. The catches: a 0.25% annual fee, above the 0.14% average for similar funds, and much smaller size.

• Over the year to Oct 27, 2026, PVI returned +1.8%, 4th of 8 among similar funds.
• Its 5-year annualized return was +2.1% and its 10-year +1.4%.
• In the 2020 COVID crash it fell 0.7% and regained its old high 0.3 months after the low.
• Its worst full calendar year was 2015 (-0.2%); its best was 2008 (+3.4%).
• The deepest fall in its price history was 4.1% (Jan 25, 2008 to Feb 29, 2008), recovered by May 29, 2009.

As of May 31, 2026, the fund held 134 securities; the ten largest made up 31.07% of assets.

The bonds mature in 5.9 years on average (weighted by size), with an average coupon of 1.96%.

• Over the three months to May 31, 2026, investors withdrew a net $1.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.16%, +0.23%, +0.16%.

PVI aims to match, before fees, the ICE US Municipal AMT-Free VRDO Constrained Index. The index holds variable rate demand obligations (VRDOs): tax-exempt bonds from states, territories and local governments whose interest rates reset daily, weekly or monthly. Holders can usually demand their money back on short notice; a remarketing agent, a dealer, then resells the bonds, which helps keep prices near face value. Each bond needs at least $10 million outstanding and an investment-grade (higher-quality) average rating from Moody's, S&P and Fitch. Bonds subject to the alternative minimum tax (AMT), a parallel federal tax that hits some higher earners, are excluded.

PVI generally keeps at least 80% of total assets in index bonds but uses sampling, holding a representative slice: the index had 952 bonds as of October 31, 2025, while the fund held 134 as of May 31, 2026. The largest were New York City Municipal Water Finance Authority (4.6%), New York City Housing Development Corp. (4.0%) and Orlando Utilities Commission (4.0%). The top 10 made up 31%, with New York issuers prominent.

PVI won't necessarily drop a lagging bond unless it leaves the index. A key risk: if the fund can't use its demand rights, or an issuer or remarketing agent fails to pay, these bonds can be hard to offload.

• PVI charges 0.25% a year, versus an average of 0.14% for the similar funds below (7th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).

Its tax-exempt bonds with frequently resetting rates have kept price swings very small, so it acts more like a reserve for near-term spending in a taxable account than a source of growth or high income.

PVI has held steady in past sell-offs. It dipped at most 0.7% in the 2020 COVID crash, recovering by April 1, 2020, and gained 0.5% across the 2022 bear market. Its worst calendar year in the prospectus record (2015–2024) was 2021, down 0.24%. It launched in November 2007, after the stock market's October 2007 peak, then fell 4.1% in early 2008 and took about 15 months to recover, a modest hit for anyone forced to cash out then.

Income arrives monthly: 2.18% of the share price over the 12 months to October 27, 2026. That income is meant to be free of federal tax, a benefit that goes unused in an IRA or 401(k). Costs run 0.25% a year versus a 0.14% average for similar funds. 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).