Invesco Fundamental High Yield Corporate Bond ETF PHB avoids the lowest-quality issuers in the high-yield corporate-bond market, but its weighting scheme tilts its portfolio toward smaller and less liquid bonds. As a result, the fund struggles to keep pace with its index, particularly during difficult periods in credit markets. These struggles have prevented it from delivering attractive risk-adjusted performance relative to its Morningstar Category index, the ICE Bank of America High Yield Index. As a result, we are downgrading its Process rating to Below Average from Average, which results in a downgrade to its overall Morningstar Analyst Rating to Negative from Neutral.
Invesco Fundamental Hi Yld® Corp Bd ETF PHB
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will PHB outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable PHB’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the PHB management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of PHB’s parent organization’s priorities and whether they’re in line with investors’ interests.
The fund continues to struggle to keep pace with its index and has been downgraded as a result.
