At a glance
VRIG charges 0.3% a year, above the 0.11% average of the 7 funds most like it (the 7th cheapest of 8). It has $1.84B in assets, the 5th largest of that group; it paid 4.48% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.3% with distributions reinvested, the best of those 8 funds; over three years it returned +5.6% a year. At its worst it fell 12.4% in the 2020 crash (S&P 500: 33.7%) and 2.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 6 months after the lows. Its ten largest positions make up 20.3% of the fund, out of 372 in all.
The short version
Invesco Variable Rate Investment Grade ETF (VRIG) is an actively managed bond fund that holds mostly investment-grade floating-rate debt, such as U.S. Treasury floating rate notes and mortgage-backed securities. Their interest payments reset as rates change, so the fund aims for a duration of one year or less. That makes it far less sensitive to rate swings than most bond funds. The trade-off is a 0.30% expense ratio, well above the 0.11% peer average.
Price history
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VRIG +4.3% 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 | |
|---|---|---|---|---|---|---|
| VRIG official prospectus, to Dec 31, 2025 | — | +5.11% | — | +4.20% | — | +3.41% |
| VRIG price data to Oct 27, 2026 | +3.3% | +4.3% | +5.6% | +4.6% | +3.4% | +3.4% |
- Over the year to Oct 27, 2026, VRIG returned +4.3%, 1st of 8 among similar funds.
- Its 5-year annualized return was +4.6% and its 10-year +3.4%.
- In the 2020 COVID crash it fell 12.4% and regained its old high 5.1 months after the low.
- Its worst full calendar year was 2018 (+0.5%); its best was 2023 (+7.3%).
- The deepest fall in its price history was 13.1% (Feb 19, 2020 to Mar 26, 2020), recovered by Aug 21, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.3% | — |
| 2025 | +5.0% | +5.11% |
| 2024 | +6.8% | +6.79% |
| 2023 | +7.3% | +7.28% |
| 2022 | +0.9% | +1.03% |
| 2021 | +1.0% | +0.98% |
| 2020 | +1.7% | +1.79% |
| 2019 | +4.5% | +4.23% |
| 2018 | +0.5% | +1.04% |
| 2017 | +3.3% | +3.04% |
| 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 11.5% over that stretch · deepest drop along the way 12.4%, back to its old high 5.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.5% over that stretch · deepest drop along the way 2.3%, back to its old high 5.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9200 | |
| 2025 | $1.2400 | -19.0% |
| 2024 | $1.5300 | +3.4% |
| 2023 | $1.4800 | +159.6% |
| 2022 | $0.5700 | +216.7% |
| 2021 | $0.1800 | -53.8% |
| 2020 | $0.3900 | -49.4% |
| 2019 | $0.7700 | +10.0% |
| 2018 | $0.7000 | +15.7% |
| 2017 | $0.6049 |
What's inside
As of Jul 31, 2026, the fund held 372 securities; the ten largest made up 20.33% of assets, and 2.5% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| U.S. Treasury Floating Rate Notes Bonds and notes | 7.44% | |
| U.S. Treasury Floating Rate Notes Bonds and notes | 3.77% | |
| U.S. Treasury Floating Rate Notes Bonds and notes | 2.29% | |
| U.S. Treasury Floating Rate Notes Bonds and notes | 2.18% | |
| U.S. Treasury Floating Rate Notes Bonds and notes | 0.92% | |
| Fannie Mae Connecticut Avenue Securities Mortgage-backed securities | 0.86% | |
| Freddie Mac Mortgage-backed securities | 0.76% | |
| Freddie Mac REMICs ABS-APCP | 0.72% | |
| Fannie Mae Connecticut Avenue Securities Mortgage-backed securities | 0.71% | |
| OBX 2026-HE2 Trust Mortgage-backed securities | 0.68% | |
| Fannie Mae Connecticut Avenue Securities Mortgage-backed securities | 0.65% | |
| Fannie Mae Connecticut Avenue Securities Mortgage-backed securities | 0.63% | |
| Freddie Mac Mortgage-backed securities | 0.63% | |
| SHRN Trust 2025-MF18 Mortgage-backed securities | 0.62% | |
| SCG Commercial Mortgage Trust Mortgage-backed securities | 0.62% |
By country
United States 84.87%United Kingdom 4.11%France 2.17%Japan 2.16%Netherlands 1.43%By issuer
Companies 49.25%US government-sponsored enterprises 31.51%US Treasury 17.18%US government agencies 0.11%The bonds mature in 11 years on average (weighted by size), with an average coupon of 5%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $359.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.33%, +0.37%, +0.37%.
How it works
VRIG does not track an index. Invesco Advisers, Inc., the fund's sub-adviser, picks the bonds. Under normal conditions, at least 80% of assets go into investment-grade bonds whose interest rates float or vary. Investment grade means rated BBB- or higher by S&P or Fitch, or Baa3 or higher by Moody's. The bonds must be in U.S. dollars and issued by U.S. companies or government agencies. Allowed types include floating-rate Treasuries, mortgage-backed and asset-backed securities, commercial real estate loan pools (CLOs), corporate floating-rate notes, preferred stock, and credit risk transfer bonds like Fannie Mae's Connecticut Avenue Securities.
The sub-adviser splits money across these types based on its view of risk, return, inflation, growth and relative value. In turbulent markets it may move heavily into floating-rate Treasuries and agency mortgage bonds. Asset-backed and non-agency mortgage bonds combined are capped at 20% of assets. Up to 20% may go into junk bonds or fixed-rate debt. Portfolio turnover was 62%.
Floating coupons are the key mechanic. As of July 31, 2026, the average years to maturity was 11, yet the expected duration (sensitivity to rate changes) is one year or less, because coupons reset with short-term rates. The flip side is that income falls when rates fall. The fund held 372 securities, and Treasury floating rate notes made up its five largest positions.
What it really costs
- VRIG charges 0.3% a year, versus an average of 0.11% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VRIG | $31 | $97 | $169 | $381 |
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 floating-rate, investment-grade bonds have kept price swings small and calendar-year returns positive, so it can act as a low-volatility cash-like reserve.
VRIG had no losing calendar year from 2017 through 2025. Its weakest year was 2021, at 0.98%, according to the prospectus. It held up in 2022, returning 1.03% while longer bonds slumped, and its deepest dip that year was 2.3%. The real stress test came in the COVID crash. The fund fell 13.1% between February 19 and March 26, 2020, as credit markets froze, and did not recover until August 21, 2020. Anyone forced to sell during that window would have locked in a loss. The fund launched in 2016, so it has no 2008 record.
The trailing yield was 4.48% as of October 27, 2026, paid monthly. That income will shrink if short-term rates fall. Costs come to $381 over ten years on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income that rises with short-term rates, with a 4.48% trailing yield as of October 27, 2026.
- Retirees wanting a reserve with little interest rate risk, given its expected duration of one year or less.
- Investors comfortable with active management across Treasury floaters, mortgage-backed securities and credit risk transfer bonds instead of an index.
Look elsewhere if
- Cost-focused investors: the 0.30% expense ratio ranks 7th of 8 among similar bond funds, which average 0.11%.
- Those wanting bonds that tend to rise when rates fall; floating coupons reset lower instead, cutting income.
- Anyone who can't tolerate credit-driven drops like the 13.1% slide in early 2020, which took about five months to recover.
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 |
|---|---|---|---|---|---|
| VRIG this fund | 11 yrs | 0.3% | $1.84B | +4.3% | +5.6% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| GIGB Goldman Sachs Access Investment Grade Corpo… | 11 yrs | 0.08% | $1.01B | -1.7% | +6.1% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| IGEB iShares Investment Grade Systematic Bond ETF | 11.3 yrs | 0.18% | $1.49B | -1.5% | +6.7% |
| CORP PIMCO Investment Grade Corporate Bond Index… | 9.3 yrs | 0.36% | $1.60B | -1.6% | +6.6% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
Questions investors ask
Does VRIG pay monthly dividends?
Yes. VRIG pays income monthly. Over the 12 months to October 27, 2026, it paid $1.12 per share, a trailing yield of 4.48%. Because most of its bonds have floating rates, payments move with short-term interest rates. They tend to rise when rates go up and shrink when rates are cut, so the yield is not fixed.
Can VRIG lose money?
Yes, though it hasn't had a losing calendar year since launch. From 2017 through 2025, yearly returns ranged from 0.98% to 7.28%, according to the prospectus. But in the COVID crash it fell 13.1% between February 19 and March 26, 2020, and its worst quarter was a 5.99% loss. It took until August 21, 2020 to recover. Credit risk, not interest rate risk, drove that drop.
What does VRIG invest in?
VRIG mainly holds investment-grade floating-rate debt. As of July 31, 2026, it owned 372 securities. About 49% were company issues, 32% government-sponsored enterprise debt and 17% U.S. Treasury debt. Its five largest positions were U.S. Treasury floating rate notes, led by one at 7.4% of assets. Next came Fannie Mae Connecticut Avenue Securities and Freddie Mac credit risk transfer bonds. Mortgage-backed securities made up about 37% of the portfolio.
VRIG vs BND: what's the difference?
Both hold bonds with similar average maturities, around 11 to 12 years. But VRIG's floating coupons keep its expected duration at one year or less, while BND tracks the broad bond market. BND costs much less, at 0.03% versus VRIG's 0.30%. Over one year, VRIG returned 4.3% (as of October 27, 2026), compared with BND's -0.6% (as of October 29, 2026). Over three years the returns were closer: 5.6% versus 5.2% a year.
How does VRIG do when interest rates rise?
VRIG has held up well when rates rise, because its coupons reset higher as rates climb. In 2022, a year of steep rate increases, it returned 1.03%, according to the prospectus. Its deepest dip that year was 2.3%, and it recovered by December 6, 2022. The catch works the other way: when rates fall, VRIG's income drops, and it won't get the price gains that longer fixed-rate bonds usually see.