Invesco BulletShares (R) 2027 Municipal Bond ETF (BSMR)

Overview

The Invesco BulletShares 2027 Municipal Bond ETF (BSMR) is designed to provide exposure to the US municipal bond market with a target maturity date in 2027. It offers a defined maturity strategy, investing primarily in investment-grade municipal bonds. The fund's strategy is to provide predictable income and return of principal at the target maturity date.

Reputation and Reliability

Invesco is a well-established and reputable asset manager with a long history of providing investment products, including ETFs.

Management Expertise

Invesco has a dedicated team of fixed-income professionals experienced in managing municipal bond portfolios and ETFs.

Goal

To seek to replicate, before fees and expenses, the Bloomberg Municipal Bond 2027 Index.

Investment Approach and Strategy

Strategy: The fund aims to replicate the Bloomberg Municipal Bond 2027 Index, focusing on a buy-and-hold strategy until the target maturity date.

Composition The ETF holds a portfolio of investment-grade municipal bonds with a maturity date in 2027. It primarily invests in bonds issued by US state and local governments.

Market Share: BSMR holds a niche position within the defined-maturity municipal bond ETF market.

Total Net Assets (AUM): 138400000

Key Competitors

• Guggenheim BulletShares Municipal Bond ETF (BSMU)
• iShares iBonds Dec 2027 Term Muni Bond ETF (IBMK)

Competitive Landscape

The competitive landscape is defined by other target maturity municipal bond ETFs. BSMR competes primarily with BSMU in terms of AUM and trading volume. BSMR may have advantages in certain expense ratios or tracking error metrics compared to its competitors, while competitors may have larger AUM attracting higher liquidity.

Historical Performance: Data for historical performance is best obtained directly from Invesco's website or other financial data providers. Historical performance will vary as the fund approaches its maturity date.

Benchmark Comparison: Data for benchmark comparison is best obtained directly from Invesco's website or other financial data providers, comparing to Bloomberg Municipal Bond 2027 Index.

Expense Ratio: 0.24

Average Trading Volume

The average trading volume of BSMR indicates moderate liquidity for most investors, but large trades might experience wider spreads.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume, impacting trading costs.

Market Environment Factors

Municipal bond yields, interest rate changes, tax policy updates, and state and local government financial health affect the ETF.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for defined-maturity municipal bond exposure and the overall performance of the municipal bond market. As the maturity date approaches the ETFu2019s assets will be gradually distributed.

Competitive Edge

BSMR provides a predictable income stream and return of principal tied to a specific maturity date in the municipal bond market. The defined-maturity structure of the ETF allows investors to ladder bond portfolios to manage interest rate risk. Invesco's expertise in managing fixed-income portfolios provides a degree of confidence for investors. The fund's focus on investment-grade municipal bonds helps mitigate credit risk. Investors seeking tax-advantaged income may also find value in this ETF.

Volatility

BSMR's volatility is relatively low compared to equity ETFs, but interest rate changes can still impact the fund's price.

Market Risk

Market risk primarily stems from interest rate risk, credit risk (though mitigated by investment-grade holdings), and liquidity risk, especially during periods of market stress.

Ideal Investor Profile

Ideal investors include those seeking tax-exempt income, those looking for a defined maturity strategy, and those who want to match liabilities with assets maturing in 2027.

Market Risk

BSMR is suitable for long-term investors who want to hold the ETF until its maturity date and are seeking a relatively predictable stream of tax-exempt income.

The Invesco BulletShares 2027 Municipal Bond ETF (BSMR) offers investors exposure to a diversified portfolio of investment-grade municipal bonds maturing in 2027. Its defined-maturity structure provides predictability and makes it suitable for investors seeking tax-exempt income and liability matching. The fund's performance is sensitive to interest rate movements and overall market conditions. As the ETF approaches its maturity date, its risk profile decreases and return of capital is the main driver.

Data Sources:

• Invesco official website
• Bloomberg
• Morningstar
• SEC filings

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Consult with a qualified financial advisor before making any investment decisions. The data provided is based on available information and is subject to change.