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Upturn AI SWOT - About
Invesco VRDO Tax-Free ETF (PVI)
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Upturn Advisory Summary
10/24/2025: PVI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit 7.02% | Avg. Invested days 642 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | ETF Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/24/2025 |
Key Highlights
Volume (30-day avg) - | Beta -0.01 | 52 Weeks Range 23.85 - 25.08 | Updated Date 06/29/2025 |
52 Weeks Range 23.85 - 25.08 | Updated Date 06/29/2025 |
Upturn AI SWOT
Invesco VRDO Tax-Free ETF
ETF Overview
Overview
The Invesco VRDO Tax-Free ETF (VRDO) seeks to provide current income exempt from federal income tax by investing primarily in variable rate demand obligations (VRDOs) that are exempt from federal income tax.
Reputation and Reliability
Invesco is a large, established asset manager with a strong reputation in the ETF market.
Management Expertise
Invesco has a team of experienced fixed income professionals managing the ETF.
Investment Objective
Goal
To provide current income exempt from federal income tax.
Investment Approach and Strategy
Strategy: The ETF invests primarily in VRDOs that are exempt from federal income tax.
Composition The ETF's holdings are primarily variable rate demand obligations (VRDOs).
Market Position
Market Share: VRDO's market share of total municipal ETFs is relatively small.
Total Net Assets (AUM): 160963371.3
Competitors
Key Competitors
- PIMCO Municipal Income Fund II (PML)
- BlackRock MuniYield Fund, Inc. (MYD)
- Nuveen AMT-Free Quality Municipal Income Fund (NEA)
Competitive Landscape
The VRDO market is relatively niche, with other large players focusing on broader municipal bond strategies. VRDO's advantage lies in its focus on VRDOs, providing tax-exempt income and potential downside protection in a rising rate environment. However, its niche focus can also be a disadvantage, as it may limit diversification compared to broader municipal bond funds.
Financial Performance
Historical Performance: Historical performance data not available to calculate.
Benchmark Comparison: Unable to perform benchmark comparison due to missing data.
Expense Ratio: 0.23
Liquidity
Average Trading Volume
VRDO's average trading volume suggests reasonable liquidity for most investors.
Bid-Ask Spread
The ETF has a modest bid-ask spread, reflecting reasonable trading costs.
Market Dynamics
Market Environment Factors
Economic indicators, interest rate trends, and the overall health of the municipal bond market affect VRDO. Specifically, rising rates will reduce the fair value of the fund's assets.
Growth Trajectory
Given its current strategy and holdings, no significant changes are expected in the growth trajectory.
Moat and Competitive Advantages
Competitive Edge
Invesco VRDO Tax-Free ETF's competitive edge lies in its targeted approach to VRDOs, providing tax-exempt income with a focus on downside protection and liquidity through the variable rate structure. This focus allows investors to specifically target the VRDO market, which can be attractive in certain interest rate environments. This specialization can also offer a higher yield compared to traditional money market accounts. The ETF's structure also provides transparency and tradability that may not be available with individual VRDO holdings.
Risk Analysis
Volatility
VRDO's volatility should be relatively low due to the nature of VRDOs, but there may be liquidity and credit risks.
Market Risk
VRDO is exposed to municipal bond market risk, interest rate risk, and credit risk of the underlying VRDO issuers.
Investor Profile
Ideal Investor Profile
The ideal investor is seeking tax-exempt income and downside protection in a rising rate environment and is comfortable with the risks associated with municipal bonds.
Market Risk
VRDO is suitable for long-term investors seeking tax-exempt income and downside protection who want exposure to the VRDO market.
Summary
Invesco VRDO Tax-Free ETF (VRDO) provides current income exempt from federal income tax by investing in VRDOs. It offers a targeted approach to the VRDO market, which can be attractive in certain interest rate environments. Investors should consider VRDO's competitive advantage that focuses on VRDO market specifically, as well as its tax-exempt income potential. The ETF's volatility is relatively low due to the nature of VRDOs, but credit and liquidity risks are factors to consider for investors. Therefore, investors need to be aware of economic indicators, interest rate trends, and the overall health of the municipal bond market while trading VRDO.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Invesco Website
- ETF.com
- Morningstar
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investors should consult with a financial advisor before making any investment decisions. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Invesco VRDO Tax-Free ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund generally invests at least 80% of its total assets in the components of the underlying index. The underlying index tracks the performance of U.S. dollar denominated tax-exempt variable rate demand obligations that are publicly issued by U.S. states and territories, and their political subdivisions, and that have interest rates that reset daily, weekly or monthly.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.