Inside Invesco's Bond Buffet: New ETFs Serve Up Yield And Tax Breaks

BY Benzinga | MUNICIPAL | 07/24/25 03:26 PM EDT

Investors are increasingly seeking flexible and tax-efficient strategies in today’s complex fixed-income landscape. In response, Invesco Ltd. is expanding its active fixed-income offerings with the launch of two new ETFs, further solidifying its position in this growing market.

  • IVZ is holding near its annual highs. Track it now here.

Invesco Ltd. has introduced the Invesco Core Fixed Income ETF?and?the Invesco Intermediate Municipal ETF??bringing its total fixed-income assets managed to a whopping $491?billion in ETFs, mutual funds, and separately managed accounts.

Check out the current price of the GTOC and INTM funds here.

These funds are actively managed by Invesco’s U.S. Investment Grade and Municipal Bond teams.

GTOC: The go-to core bond ETF, concentrating on high-quality, investment-grade U.S. fixed-income securities?perfect as a steady heartbeat in conservative portfolios.

INTM: Pursuing federally exempt income by investing a minimum of 80% in high-credit municipal bonds (BBB or higher), with a mid-term 4?6?year duration vibe.

The pair supplements Invesco’s current GTO?family, which includes?

  • Invesco Total Return Bond ETF (GTO) ,
  • Invesco Short Duration Total Return Bond ETF ,
  • Invesco Ultra Short Duration ETF (GSY) ,
  • Invesco AAA CLO Floating Rate Note ETF (ICLO) ,

The GTOC and INTM funds lean into investor interest in active strategies through ETFs.

Invesco has been on a hot streak since launching active ETFs in 2008. With active fixed income increasingly important in portfolio construction, these ETF additions offer inherent flexibility and customization without sacrificing tax-smart efficiency for muni?bond enthusiasts.

Also Read: An ETF Built For Yield Hunters?ABS Income, No Rate Drama

Why It Matters

For investors who want broad, liquid bond exposure, GTOC delivers tactically managed access to core fixed?income markets, while INTM adds federally tax?exempt municipal bonds?an attractive income source for those in higher tax brackets. And because Invesco runs both, investors benefit from the backing of a firm with a long track record of active-strategy success.

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Photo: Shutterstock

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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