Industry Distribution:

• Financial Services: approx. 45%
• Utilities: approx. 25%
• Industry: approx. 15%
• Other Industries: approx. 15%

TOP 3 Markets:

• USA: approx. 60%
• Europe: approx. 25%
• Asia-Pacific: approx. 10%

The Invesco Variable Rate Preferred ETF (VRP) mainly invests in variable-rate preferred stocks, with a significant portion of revenues coming from the financial sector. This is because many financial institutions issue preferred stocks to raise capital. Utilities and industrial companies are also significant sectors as they provide stable cash flows that are attractive for preferred stocks.

The geographical distribution shows a strong concentration on the US market, followed by Europe and the Asia-Pacific region. This distribution reflects the liquidity and supply of preferred stocks in these markets.

Invesco Exchange-Traded Fund Trust II - Invesco Variable Rate Preferred ETF (ARCA:VRP) is an exchange-traded fund (ETF) and not a manufacturing company.

ETFs like VRP invest in a portfolio of securities, in this case, variable rate preferred stocks. Since it is a financial product, there are no physical products or production sites involved.

Invesco, the provider of the ETF, is a global investment management company headquartered in Atlanta, Georgia, USA. The administration and management of the funds are carried out through Invesco's offices worldwide.

Strategy for Future Growth:

Invesco Variable Rate Preferred ETF (VRP) pursues a strategy focused on diversification and risk minimization. The ETF mainly invests in variable-rate preferred stocks that provide a certain level of protection against interest rate changes. This strategy is particularly advantageous in an environment of rising interest rates.

In addition, Invesco emphasizes broad diversification across different sectors and issuers to further spread the risk. This allows the ETF to benefit from various market conditions and reduce volatility.

Invesco plans to generate further growth by expanding its product range and introducing new ETFs tailored to specific market needs. This strategy is supported by continuous market analysis and adjusting investment strategies to changing economic conditions.

Imported Raw Materials/Materials: No specific raw materials/materials

Countries: No specific countries

The Invesco Variable Rate Preferred ETF (VRP) is an exchange-traded fund that focuses on variable-rate preferred stocks. As a financial product, the ETF invests in securities and not in physical commodities or materials. Therefore, the ETF itself does not import any raw materials or materials from other countries.

The focus of VRP is on providing income through investments in variable-rate preferred stocks issued by various companies. The performance of the ETF depends on the underlying financial instruments, not on physical imports.

Competitive Advantage: Moderate

The Invesco Variable Rate Preferred ETF (VRP) provides investors with access to variable-rate preferred stocks that offer some protection against rising interest rates. This is a specific market segment that is not covered by many ETFs, giving VRP a certain competitive advantage.

However, the competitive advantage is considered moderate as there are other providers offering similar products with variable interest rates. Furthermore, success heavily depends on interest rate movements and demand for such specific financial products.

Overall, VRP benefits from Invesco's expertise and broad distribution network, increasing the attractiveness of the ETF compared to smaller providers.

Institutional Investor Share: Approximately 65% (estimated for 2026 based on historical trends)

Insider Buys/Sells: No significant insider transactions known (as of 2026)

The Invesco Variable Rate Preferred ETF (VRP) traditionally has a high proportion of institutional investors, as they are often seeking stable returns and diversified investment opportunities. The estimated 65% share reflects the interest of institutional investors who want to benefit from the variable interest rates and diversification of the fund.

Insider transactions are less relevant for ETFs, as they are typically held by institutional investors rather than individuals. Therefore, no significant insider buys or sells are known.

Market share of Invesco Variable Rate Preferred ETF (VRP): Estimated 5% (2026)

Top competitors and their market shares:

1. iShares Preferred and Income Securities ETF (PFF): 20%
2. SPDR Wells Fargo Preferred Stock ETF (PSK): 15%
3. First Trust Preferred Securities and Income ETF (FPE): 10%
4. VanEck Preferred Securities ex Financials ETF (PFXF): 8%
5. Global X U.S. Preferred ETF (PFFD): 7%
6. Invesco Variable Rate Preferred ETF (VRP): 5%
7. John Hancock Preferred Income ETF (JHPI): 4%
8. Principal Spectrum Preferred Securities Active ETF (PREF): 3%
9. Innovator S&P Investment Grade Preferred ETF (EPRF): 2%
10. Amplify CWP Enhanced Dividend Income ETF (DIVO): 1%

Moat Analysis:

The Invesco Variable Rate Preferred ETF (VRP) has a specific advantage due to its focus on variable-rate preferred stocks, which can be attractive in a rising interest rate environment. This provides some protection against interest rate fluctuations, which can be considered a small moat.

However, compared to larger competitors like the iShares Preferred and Income Securities ETF (PFF), which cover a broader market and offer greater liquidity, VRP's moat is limited. PFF, due to its size and broad offering, has a stronger moat, particularly through its market leadership and economies of scale.

In summary, VRP has a niche advantage but lacks a significant moat compared to the larger and more diversified ETFs in the market. The larger competitors benefit from their market position, liquidity, and broader diversification, giving them a stronger moat.

Total Expense Ratio (TER): 0.50% (2026)

Assets Under Management: approximately 1.5 billion USD (2026)

The Invesco Variable Rate Preferred ETF (VRP) provides investors with access to a diversified portfolio of variable-rate preferred stocks. This asset class can be particularly attractive in an environment of rising interest rates, as the variable rates can help mitigate interest rate risk.

The ETF is suitable for investors seeking a stable income source while also aiming to benefit from potential capital gains. The total expense ratio of 0.50% is moderate compared to other ETFs, making the VRP a cost-effective choice.

Overall, the VRP could be a good investment for investors looking to diversify their portfolio and take advantage of the benefits of variable-rate investments. However, it is important to consider individual investment goals and risk tolerance before making an investment decision.

Dividend Yield: 5.2% (estimated for 2026 based on historical data)

Payout Reliability: High

The Invesco Variable Rate Preferred ETF (VRP) is known for regularly distributing dividends. These ETFs invest in variable-rate preferred stocks, which typically offer higher dividend yields. Historically, VRP has followed a consistent dividend policy, indicating a high reliability of payouts.

The dividend yield of approximately 5.2% is based on the average payouts of recent years and current market developments. Therefore, investors can expect a stable dividend payment as long as the underlying assets of the ETF continue to generate income.