ETF Evaluator: Invesco High Yield Systematic Bond ETF () Follow This ETF

Invesco High Yield Systematic Bond ETF Overview

Invesco High Yield Systematic Bond ETF (GTOQ) is an actively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Invesco launched the ETF in 2020.

The investment seeks total return. The fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in high-yield, below-investment grade, fixed-income securities, and in derivatives and other instruments that have economic characteristics similar to such securities. It may invest up to 20% of its net assets in U.S. Treasury and agency securities. The fund may also invest up to 10% of its net assets in certain collateralized debt obligations.

About Invesco High Yield Systematic Bond ETF (GTOQ)

There are 4 members of the management team with an average tenure of 1.48 years: James Ong (2024), Matthew Brill (2026), Todd Schomberg (2026) and Jacob Habibi (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US HY 2% Issuer Cap TR USD index with a weighting of 100%. Invesco High Yield Systematic Bond ETF has 482 securities in its portfolio. The top 10 holdings constitute 23.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco High Yield Systematic Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Invesco High Yield Systematic Bond ETF has 14.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.3% (83.9% domestic bond, 14.4% foreign bond and 0.0% convertible bond). Invesco High Yield Systematic Bond ETF has 2.0% of the portfolio in cash.

Assets Under Management

The fund has $180 million in total assets, which is below the $1 billion average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

GTOQ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco High Yield Systematic Bond ETF expense ratio is below average compared to funds in the High Yield Bond category. Invesco High Yield Systematic Bond ETF has an expense ratio of 0.39%, which is 2% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco High Yield Systematic Bond ETF has a portfolio turnover rate of 70%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.

Recently, in the month of July 2026, Invesco High Yield Systematic Bond ETF returned -0.2%, which earned it a grade of B, as the High Yield Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco High Yield Systematic Bond ETF has a trailing yield of 6.88%, which is above the 6.77% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco High Yield Systematic Bond ETF Grades

Year to date, the ETF has returned 1.9%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 5.4% over the past year (grade of B), 8.2% over the past three years (grade of B) and 3.8% per year over the past five years (grade of C).

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