Invesco Exchange-Traded Self-Indexed Fund Trust - BulletShares 2030 High Yield Corporate Bond ETF (BSJU)

Overview

The Invesco BulletShares 2030 High Yield Corporate Bond ETF (BSJO) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the Nasdaq BulletShares USD High Yield Corporate Bond 2030 Index. It focuses on high-yield corporate bonds maturing in 2030, offering a defined maturity investment strategy.

Reputation and Reliability

Invesco is a well-established global investment management firm with a strong reputation and extensive experience in managing ETFs.

Management Expertise

Invesco has a dedicated fixed-income team with expertise in credit analysis and portfolio management.

Goal

To seek investment results that correspond generally to the performance, before fees and expenses, of the Nasdaq BulletShares USD High Yield Corporate Bond 2030 Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Nasdaq BulletShares USD High Yield Corporate Bond 2030 Index, a rules-based index composed of USD-denominated, high yield corporate bonds with effective maturities in the year 2030.

Composition The ETF holds a portfolio of high-yield (junk) corporate bonds maturing in 2030.

Market Share: BSJO's market share is relatively smaller compared to broader high-yield bond ETFs.

Total Net Assets (AUM): 130500000

Key Competitors

• iShares iBoxx High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg High Yield Bond ETF (JNK)
• VanEck High Yield Muni ETF (HYD)

Competitive Landscape

The high-yield corporate bond ETF market is dominated by a few large players like HYG and JNK. BSJO differentiates itself with its defined maturity approach, targeting bonds maturing in 2030, which can be attractive for investors seeking a specific target date for their fixed-income investments. This strategy offers a predictable return of capital at maturity, which standard high-yield ETFs do not offer. However, its smaller size and lower liquidity can be disadvantages compared to larger, more liquid competitors.

Historical Performance: Historical performance data is available from inception to present. Performance can vary depending on the credit quality and yield of the underlying bonds.

Benchmark Comparison: The ETF's performance should be compared to the Nasdaq BulletShares USD High Yield Corporate Bond 2030 Index.

Expense Ratio: 0.42

Average Trading Volume

The average daily trading volume for BSJO is relatively low, which can affect the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for BSJO can be wider than more liquid ETFs, potentially increasing the cost of trading.

Market Environment Factors

Economic growth, interest rate changes, and credit spreads significantly influence BSJO. A strong economy typically supports high-yield bonds, while rising interest rates can negatively impact bond prices.

Growth Trajectory

The growth trajectory of BSJO depends on investor demand for defined maturity high-yield bond strategies. Changes in interest rate expectations and credit market conditions can influence investor interest.

Competitive Edge

BSJO's defined maturity structure is its primary competitive advantage, providing investors with a predictable maturity date for their high-yield bond investments. This differs from traditional high-yield ETFs, which have a rolling maturity profile. This feature makes it attractive for investors with specific time horizons or liability matching needs. The ETF's targeted maturity reduces interest rate risk as it approaches its maturity date, although it is still subject to credit risk.

Volatility

BSJO's volatility is tied to the high-yield bond market, which is generally more volatile than investment-grade bonds due to higher credit risk.

Market Risk

The ETF is subject to market risk, including interest rate risk, credit risk (default risk of the underlying bonds), and liquidity risk.

Ideal Investor Profile

The ideal investor is someone seeking high current income with a defined maturity date in 2030 and is comfortable with the higher credit risk associated with high-yield bonds.

Market Risk

BSJO is suitable for long-term investors who have a specific investment horizon and are seeking a defined maturity date for their fixed-income investments.

BSJO is a high-yield corporate bond ETF with a defined maturity date of 2030. It offers a unique approach compared to traditional high-yield ETFs, providing investors with a predictable return of capital at maturity. Its main advantages are the defined maturity and predictable nature, but it is subject to credit risk and may have lower liquidity compared to larger high-yield bond ETFs. This is most suitable for long-term investors comfortable with junk bond risk and desiring income with a set maturity date.

Data Sources:

• Invesco Official Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.