(VRIG) Invesco Variable Rate - Ratings and Ratios

The Invesco Variable Rate Investment Grade ETF (NASDAQ: VRIG) is an ultrashort-bond fund that commits at least 80 % of its net assets-plus any investment-purpose borrowings-to investment-grade, variable-rate (floating-rate) debt securities, or to ETFs that hold such securities.

Key quantitative metrics (as of the latest public filing) include an expense ratio of 0.25 %, a weighted-average maturity of roughly 0.9 years, and a 30-day SEC yield near 4.8 %. The fund’s assets under management are about $350 million, and its average credit rating is “A-” (Moody’s) or “BBB+” (S&P), indicating solid investment-grade quality.

Primary economic drivers for VRIG’s performance are the Federal Reserve’s short-term rate policy and the shape of the yield curve. Because the underlying securities reset their coupon rates frequently, the ETF’s income is closely tied to changes in the Fed Funds rate, making it a potential hedge against rising rates but also exposing it to rate-cut risk. Additionally, corporate credit spreads in the investment-grade segment influence total return, especially during periods of heightened credit stress.

Sector exposure tends to be weighted toward financials (bank loan participations) and industrials, reflecting the composition of the floating-rate corporate bond market. A rise in corporate earnings or a reduction in default risk in these sectors typically improves the fund’s credit quality and reduces spread compression risk.

Assumption: The KPI figures are based on the most recent quarterly report; any material portfolio rebalancing after that date could alter duration, yield, or credit quality. Uncertainty: Future Fed policy and macro-economic volatility could cause the fund’s effective duration to deviate from its target, affecting performance relative to expectations.

For a deeper, data-driven comparison of VRIG’s risk-adjusted performance versus peers, you may want to explore the ValueRay platform.