Invesco BulletShares 2028 Corporate Bond ETF (BSCS)

Overview

The Invesco BulletShares 2028 Corporate Bond ETF (BSCS) is designed to provide investment results that correspond to the performance of the Nasdaq BulletShares USD Corporate Bond 2028 Index. It focuses on holding a portfolio of U.S. dollar-denominated investment-grade corporate bonds with a target maturity year of 2028, aiming to provide a predictable income stream and return of principal at maturity.

Reputation and Reliability

Invesco is a well-established global investment management firm with a strong reputation and extensive experience in offering a diverse range of ETFs.

Management Expertise

Invesco's management team possesses considerable expertise in fixed-income investing and ETF management, leveraging their research and analytics capabilities to construct and manage the BulletShares portfolio effectively.

Goal

The investment objective of BSCS is to seek investment results that correspond to the price and yield performance, before fees and expenses, of the Nasdaq BulletShares USD Corporate Bond 2028 Index.

Investment Approach and Strategy

Strategy: BSCS employs a 'maturity ladder' strategy, investing primarily in U.S. dollar-denominated investment-grade corporate bonds with a final maturity date in the target year of 2028.

Composition The ETF primarily holds investment-grade corporate bonds. The fund rebalances to maintain exposure to bonds maturing in 2028. As it approaches maturity, the portfolio composition will shift towards cash and other short-term investments.

Market Share: Data Unavailable due to dynamic market information.

Total Net Assets (AUM): 88098760

Key Competitors

• iShares iBonds Dec 2028 Term Corporate ETF (IBDM)
• Xtrackers Investment Grade Bond - Interest Rate Hedged ETF (IGIH)
• Vanguard Total Bond Market ETF (BND)

Competitive Landscape

The competitive landscape includes other target maturity bond ETFs and broader bond market ETFs. BSCS's advantage lies in its defined maturity date, offering investors a predictable return of capital at maturity. A disadvantage may be potential underperformance compared to actively managed bond funds during certain market conditions. It is also limited to corporate bonds, unlike broader bond market ETFs which include government bonds.

Historical Performance: Historical performance data unavailable in specified format.

Benchmark Comparison: Benchmark comparison data unavailable in specified format.

Expense Ratio: 0.24

Average Trading Volume

The ETF exhibits moderate liquidity, generally allowing investors to buy or sell shares without significantly impacting the market price.

Bid-Ask Spread

The bid-ask spread is typically narrow, reflecting sufficient trading activity and relatively low transaction costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and credit spreads heavily influence the performance of BSCS. Changes in these factors impact the value of the underlying corporate bonds.

Growth Trajectory

BSCS's growth trajectory is primarily driven by investor demand for target maturity bond ETFs. Changes in strategy are limited due to the defined maturity date; however, the fund may adjust its holdings to maintain the target maturity profile.

Competitive Edge

BSCS offers a distinct advantage through its target maturity date, providing investors with a predictable return of capital at a specific point in time. This feature is particularly attractive to investors planning for future liabilities or seeking to align their fixed-income investments with specific financial goals. Its investment-grade focus aims to provide relatively lower credit risk, and the defined maturity ladder strategy distinguishes it from perpetual bond funds, offering potentially less interest rate sensitivity as the maturity date approaches.

Volatility

BSCS's volatility is generally lower than equity ETFs but higher than money market funds, reflecting the interest rate and credit risk inherent in corporate bonds.

Market Risk

BSCS is subject to market risk, including interest rate risk (changes in interest rates can negatively impact bond prices) and credit risk (the risk that bond issuers may default on their payments). The value of the ETF may decline due to adverse market conditions.

Ideal Investor Profile

The ideal investor for BSCS is someone seeking a predictable income stream and a return of principal at a specific future date (2028). It suits individuals planning for retirement, college expenses, or other long-term financial goals.

Market Risk

BSCS is suitable for long-term investors who seek to align their fixed-income investments with a specific time horizon, particularly those in retirement planning or liability matching strategies.

The Invesco BulletShares 2028 Corporate Bond ETF (BSCS) offers a targeted fixed-income investment with a maturity date in 2028. It focuses on investment-grade corporate bonds and provides a predictable return of capital at maturity, making it suitable for long-term investors with specific financial goals. The ETF's performance is subject to interest rate and credit risk, but its defined maturity date offers a unique advantage compared to perpetual bond funds. Investors should consider their risk tolerance and investment horizon before investing.

Data Sources:

• Invesco Official Website
• Nasdaq Official Website
• FactSet
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data is dynamic and may not be current. Performance data not guaranteed. Data may be delayed.