Invesco Ultra Short Duration ETF’s experienced and stable management team draws support from a deep well of resources. The strategy earns a Morningstar Medalist Rating of Bronze.
Seasoned leaders oversee this effort. Money market veterans Joe Madrid and Marques Mercier have led the strategy’s day-to-day operations since Invesco acquired it in April 2018. Madrid has been a member of Invesco's global liquidity team since 2009 and Mercier since 1996. CIO and head of global liquidity Laurie Brignac draws on more than three decades of experience to provide further guidance, but her comanager role does not include day-to-day management responsibilities.
The management trio depends on a well-resourced supporting cast. Four analysts dedicated to liquidity strategies support the group. The managers also engage with Invesco’s investment-grade corporate credit, structured investments, and bank loan teams, and they incorporate top-down insights from the investment strategy team (a group of sector CIOs and fixed-income leaders) to help determine sector allocations and appropriate levels of risk. 
The managers employ a straightforward multisector approach, which has not provided a meaningful edge over ultrashort bond Morningstar Category peers. Liquidity is emphasized here; cash equivalent securities, like commercial paper and repurchase agreements, accounted for approximately 40% of the portfolio’s assets as of March 2023. Investment-grade corporate bonds, typically 35%-55% of the portfolio, totaled about 44% of assets as of March 2023. Asset-backed securities and nonagency residential mortgage-backed securities round out the portfolio with 8% and 6% allocations (most of which are AAA rated), respectively. By mandate, the managers maintain a duration of less than a year, and as of March 2023, the strategy’s 0.7-year duration (which ranged from 0.1 years to 0.8 years during the last five years) was slightly more interest-rate-sensitive than the typical peer’s 0.5-year duration . 
The team’s track record since inheriting the portfolio is solid, and relatively low fees help make a strong case for this ETF. The fund’s 1.7% annualized gain from April 2018 through April 2023 outpaced more than 60% of distinct category peers with middling volatility, as measured by standard deviation.

Analyst Rating

A solid ultrashort bond offering.

Analyst

Thomas Murphy

Invesco AAA CLO Floating Rate Note ETF

The structured and consistent process is adequate but does not offer a compelling advantage in the ultrashort bond space. The strategy maintains an Average Process rating.
Portfolio managers Joe Madrid and Marques Mercier employ a straightforward multisector approach while maintaining a portfolio duration of less than one year. Liquidity is emphasized here through cash equivalent securities such as commercial paper (unsecured financing for a company's working capital needs) and repurchase agreements (short-term financing backed by collateral), which generally makes up 35%-55% of portfolio assets. The rest of the portfolio typically consists of 35%-55% in investment-grade corporate bonds (mostly financial companies who issue short-term paper) and 5%-15% in both ABS (mostly collateralized loan obligations) and nonagency RMBS. Nearly all securitized positions are AAA rated.
The managers incorporate the investment strategy team's macro views into the portfolio's asset allocation and risk budget. Investment themes are discussed among the sector groups across the fixed-income platform to identify risks at the industry and sector levels while research analysts assign fundamental ratings to issuers and securities that help determine buy and sell decisions along with position sizing. Based on the best top-down and bottom-up ideas, the portfolio managers adjust positioning to suit the strategy's ultrashort mandate (being mindful of liquidity and keeping duration under a year). While this process is sufficient for the mandate in place, it lacks a compelling competitive advantage over similar approaches in the ultrashort bond space.

Average

Process

An experienced and stable portfolio management team coupled with deep supporting resources earns this strategy an Above Average People rating. 
Invesco’s global liquidity franchise took control of the strategy when the firm acquired the offering from Guggenheim in April 2018. CIO Laurie Brignac heads this group and is named on the strategy, though she does not play a large role in its day-to-day management. Comanagers Joe Madrid and Marques Mercier lead the portfolio management effort and have been members of Invesco's global liquidity team since 2009 and 1996, respectively. The 17-member global liquidity team is seasoned, averaging over two decades of industry experience.
Mercier and Madrid make the final decisions and execute trades in the portfolio. They are supported by a four-member global liquidity credit research group who are dedicated to research across the firm’s money market and ultrashort duration solutions. The managers also regularly engage with Invesco's large investment-grade corporate credit, structured investments, and bank loan teams. They tap into analysts’ fundamental research and recommendations on individual issuers through systems shared across the collaborative fixed-income team. Invesco’s investment strategy team, comprising sector leaders across the fixed-income platform, provides top-down insights for all multisector strategies including this ultrashort bond strategy.

Above Average

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Parent

Invesco Ultra Short Duration ETF

GSY seeks to outperform the Barclays Capital 1-3 Month U.S. Treasury Bill Index by investing in a diverse portfolio of investment-grade securities.

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The yield on the benchmark 10-year Treasury rose to around 4.38%, hovering at its highest levels of 2024, up from 3.95% recorded at the start of 2024.

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Atlanta Fed President Bostic's insights emphasized the importance of data-driven decision-making and indicated that the first rate should not come before summer time.

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It generally takes a few years for changes in Federal Reserve rates to fully impact bond fund dividends. Bond funds are still benefitting from prior rate hikes. Perhaps by enough to cancel out any future rate cuts. By my estimations, and under current Fed guidance, most bond funds would only start to see declining dividends in 2025, at the earliest.

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For investors seeking momentum, Invesco Ultra Short Duration ETF GSY is probably on radar. The fund just hit a 52-week high and is up 1.23% from its 52-week low price of $49.29/share.

Short-Term Bond ETF (GSY) Hits New 52-Week High

Invesco Ultra Short Duration ETF and similar low-duration ETFs are attractive in the current market. GSY has effective durations below 1 year and offers a yield-to-maturity of over 6%, meaning a decent yield on cash while we wait out uncertain data. GSY has no duration risk and is a good choice for investors expecting continued rises in interest rates, which should be the null hypothesis especially as tight data continues.

GSY: Good YTMs To Wait Out Macro Data

For investors seeking momentum, Invesco Ultra Short Duration ETF GSY is probably on the radar. The fund just hit a 52-week high and is up 1.2% from its 52-week low price of $49.23/share.

Ultra Short-Term Bond ETF (GSY) Hits New 52-Week High

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The market is showing signs of weakness and lacks sustainable upside momentum. The recent sell-off has broken key moving averages, indicating a potential shift in market sentiment.

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The Invesco Ultra Short Duration ETF is a fixed income exchange traded fund. The vehicle contains only investment grade bonds and has a short duration of 0.78 years. GSY has managed to post a positive annual performance each year in the past decade.

GSY: Robust Short Dated Bond Fund, 5.14% Yield

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For investors seeking momentum, Invesco Ultra Short Duration ETF GSY is probably on radar. The fund just hit a 52-week high and is up 1.2% from its 52-week low price of $49.23/share.

Ultra Short Duration Bond ETF (GSY) Hits New 52-Week High

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GSY has provided its investors with essentially nothing, despite approaching its 15-year anniversary. This ETF has a total return including dividends of just 17% over those nearly 15 years. It's a wonder it still exists.

GSY: A Perennially Boring ETF With A Shot At Being Exciting

goeasy Ltd. (OTCPK:EHMEF) Q3 2022 Earnings Conference Call November 11, 2022 11:00 AM ET Company Participants Farhan Ali Khan - Senior Vice President & Chief Corporate Development Officer Jason Mullins - President & Chief Executive Officer Hal Khouri - Chief Financial Officer Jason Appel - Executive Vice President & Chief Risk Officer Conference Call Participants Etienne Ricard - BMO Gary Ho - Desjardins Marcel Mclean - TD Securities Jaeme Gloyn - NBC Stephen Boland - Raymond James Ltd.

goeasy Ltd. (EHMEF) Q3 2022 Earnings Call Transcript

Despite a massive correction, goeasy stock has delivered +36% per year in the last 10 years. The growth stock is undervalued by about 45% compared to its average 12-month analyst consensus price target.

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With the current bear market resuming its next leg down, it would be prudent for an average retail investor to consider moving their portfolio to a much larger cash allocation. The Invesco Ultra Short Duration ETF is a short duration corporate bond fund.

GSY: Short Duration Bond Fund From Invesco, 2.92% Yield

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goeasy Ltd. (OTCPK:EHMEF) Q2 2022 Earnings Conference Call August 11, 2022 11:00 AM ET Company Participants Farhan Ali Khan - Senior Vice President & Chief Corporate Development Officer Jason Mullins - President & Chief Executive Officer Hal Khouri - Chief Financial Officer Conference Call Participants Etienne Ricard - BMO Capital Markets Gary Ho - Desjardins Capital Markets Jaeme Gloyn - National Bank Financial Marcel Mclean - TD Securities Operator Good day, and thank you for standing by.

goeasy Ltd. (EHMEF) CEO Jason Mullins on Q2 2022 Results - Earnings Call Transcript

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Ahead of aggressive Federal Reserve monetary policy changes, fixed income investors could turn to ultra short-duration bonds or cash-like exchange traded fund strategies that are relatively less vulnerable to interest rate risks. Investors who are seeking cash substitutes may look to actively managed, ultra-short-duration bond ETFs that are more free to adapt holdings in a [.

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With inflationary pressures looming as 2021 turns into 2022, fixed income investors will want to shorten up duration with the Invesco Ultra Short Duration ETF (GSY). Fundamentally, inflationary pressures can eat away at bond-focused income.

With Inflationary Pressures Looming, Get Short Duration With GSY

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News for Invesco Ultra Short Duration ETF ETF (GSY)