Invesco EUR AT1 CoCo Bond UCITS ETF GBP Hedged Acc

Issuer: Invesco

Asset Class: Fixed Income

TER: 39

Trading Currency: GBX

Pays Income: False

Listing Date: 23 Jan 2026

Ticker: EATG

ISIN: IE0006WZF7C2

This fund offers a targeted way to access the European market for Additional Tier 1 (AT1) Contingent Convertible (CoCo) bonds. Its primary goal is to replicate the performance of an index comprising Euro-denominated AT1 CoCo bonds issued by financial institutions in developed markets. A key feature of this particular share class is its currency hedging mechanism, which aims to minimize the impact of exchange rate fluctuations between the Euro and the British Pound, making it suitable for sterling-based investors.

The underlying assets, AT1 CoCo bonds, are a unique form of hybrid debt that banks issue to bolster their capital reserves as required by regulators. These instruments typically provide higher yields compared to more traditional corporate or government bonds, reflecting their increased risk profile. The 'contingent convertible' nature means they can be converted into equity or have their principal value written down if the issuing bank's capital ratio falls below a predetermined threshold. This fund provides diversified exposure across numerous issuers, mitigating single-issuer risk.

This product is designed for investors with a higher risk tolerance who are seeking to enhance the income-generating potential of their fixed income portfolio. The elevated yields can be particularly attractive, but it is crucial to understand the associated risks, including the potential for loss of capital and the possibility of skipped coupon payments. The fund's accumulating structure means that all income generated by the bonds is automatically reinvested, fostering the potential for compound growth over the long term. The currency hedging isolates returns to the performance of the bonds themselves.