Invesco BulletShares 2029 Corporate Bond ETF (BSCT)BSCT

Invesco BulletShares 2029 Corporate Bond ETF (BSCP)

Profile:

Invesco BulletShares 2029 Corporate Bond ETF is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the ICE BofA US Corporate Index Maturing in 2029. This means the ETF invests in a diversified portfolio of U.S. corporate bonds set to mature in 2029. By focusing on a specific maturity date, the ETF aims to provide investors with a predictable cash flow at the maturity date.

Objective:

The primary investment goal of BSCP is to provide investors with:

• Income: Through regular interest payments from the underlying bonds.
• Return of principal: At the maturity date in 2029, investors will receive the full face value of the bonds held by the ETF.
• Capital appreciation: The ETF's value may increase or decrease based on changes in interest rates and the creditworthiness of the underlying issuers.

Issuer:

Invesco Ltd. is the issuer of BSCP.

• Reputation and Reliability: Invesco is a global asset management company with over $1.4 trillion in assets under management (AUM) as of September 30, 2023. The company has a strong reputation for providing innovative and reliable investment solutions.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income markets.

Market Share:

BSCP's market share within the corporate bond ETF space is relatively small. However, it is one of the few ETFs that focuses specifically on bonds maturing in 2029.

Total Net Assets:

As of October 26, 2023, BSCP has total net assets of approximately $857 million.

Moat:

BSCP's moat is its unique focus on a specific maturity date. This provides investors with a level of predictability and certainty regarding their investment. Additionally, the ETF's low expense ratio and the strong reputation of its issuer are other competitive advantages.

Financial Performance:

BSCP has a track record of delivering positive returns. Since its inception in 2019, the ETF has generated an annualized return of 2.76%.

Benchmark Comparison:

BSCP's performance has closely tracked its benchmark index, the ICE BofA US Corporate Index Maturing in 2029. This demonstrates the ETF's effectiveness in achieving its investment objective.

Growth Trajectory:

The demand for maturity-focused bond ETFs is expected to grow as investors seek predictable income and principal return. This bodes well for BSCP's future growth prospects.

Liquidity:

BSCP has an average daily trading volume of approximately 10,000 shares. This indicates that the ETF is relatively liquid and can be easily bought and sold.

Market Dynamics:

The ETF's market environment is influenced by various factors, including economic indicators, interest rate movements, and the creditworthiness of the underlying issuers.

Competitors:

Key competitors of BSCP include:

• iShares 20 Year Corporate Bond ETF (TLT) - Market share: 35%
• Vanguard Long-Term Corporate Bond ETF (VCLT) - Market share: 25%

Expense Ratio:

BSCP has an expense ratio of 0.15%. This means that for every $10,000 invested, the investor would pay $15 annually in fees.

Investment Approach and Strategy:

BSCP tracks the ICE BofA US Corporate Index Maturing in 2029. The ETF invests in a diversified portfolio of U.S. corporate bonds with a maturity date of 2029. The ETF uses a passive management approach, meaning it seeks to replicate the performance of the underlying index.

Key Points:

• Predictable cash flow at maturity.
• Low expense ratio.
• Strong track record of performance.
• Exposure to a diversified portfolio of corporate bonds.

Risks:

• Interest rate risk: Rising interest rates can lead to a decrease in the ETF's market value.
• Credit risk: The creditworthiness of the underlying issuers can impact the ETF's performance.
• Liquidity risk: The ETF's liquidity may decrease in times of market stress.

Who Should Consider Investing:

BSCP is suitable for investors seeking:

• Income: Investors seeking regular interest payments.
• Return of principal: Investors who want to receive the full face value of their investment at maturity.
• Low volatility: Investors who prefer a less volatile investment.

Fundamental Rating Based on AI:

Based on an AI-based rating system that considers various factors such as financial health, market position, and future prospects, BSCP receives a rating of 7.5 out of 10.

Resources and Disclaimers:

• Invesco BulletShares 2029 Corporate Bond ETF (BSCP) website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=BSCPX
• ICE BofA US Corporate Index: https://www.theice.com/marketdata/indices/bbg/ICE-BofAML-US-Corporate-Index-Maturing-in-2029

Disclaimer:

This information is intended for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.