Invesco BulletShares 2029 Corporate Bond ETF (BSCT)

ETF Invesco BulletShares 2029 Corporate Bond ETF (BSCP) Overview

Profile:

Invesco BulletShares 2029 Corporate Bond ETF (BSCP) is an actively managed exchange-traded fund that invests exclusively in investment-grade corporate bonds maturing on or before December 31, 2029. The fund aims to provide current income and total return through capital appreciation. This ETF offers exposure to the corporate bond market with a defined maturity date, allowing investors to lock in a specific yield and mitigate interest rate risk.

Objective:

The primary investment goal is to generate current income and achieve capital appreciation through its holdings in investment-grade corporate bonds expiring no later than December 31, 2029.

Issuer:

Invesco

Invesco is a global asset management firm with an extensive track record and solid reputation. The company manages over $1.63 trillion in assets across a wide range of investment products and services.

Reputation and Reliability:

Invesco is a reputable and reliable asset manager with a long-standing history in the financial industry. They are known for their expertise in fixed-income investments.

Management:

Invesco's Fixed Income team manages BSCP. With decades of experience in the sector, they possess strong experience and an established approach to managing bond portfolios.

Market Share, Total Net Assets (AUM):

BSCP holds a relatively limited market share within its sector. As of October 27, 2023, its current AUM is $552.48 million.

Moat & Financial Performance:

BSCP's primary competitive advantage lies in its defined maturity structure. This strategy enables investors to lock in a specific yield at the time of purchase, mitigating risks associated with interest rate fluctuations. While past performance cannot guarantee future results, historical data displays strong performance over various timeframes:

• 1 Year: +7.84%* • 3 Years: +15.63%* • 5 Years: +27.84%*

These returns showcase the potential benefits of the fund's strategy but should be reviewed alongside future developments in the market before making investment decisions.

*Benchmark Comparison & Growth Trajectory:

Compared to the Bloomberg U.S. Corporate Bond Index, BSCP has generally exhibited better performance, achieving a higher total return with lower volatility. Moving further, trends reveal a positive growth trajectory for the corporate bond market, driven by factors like increasing demand due to rising interest rates.

Liquidity:

BSCP's average daily trading volume is approximately 844,384 shares, indicating reasonable liquidity. The current bid-ask spread is around 0.06%, implying minimal trading costs.

Market Dynamics:

• Economic Indicators - Interest rates play a crucial role, as rising rates generally lead to decreasing bond prices. Additionally, economic growth prospects influence corporate issuance and, therefore, the performance of the underlying assets
• **Sector/Market Conditions - ** Developments impacting the corporate bond sector (e.g., industry-driven factors) can influence fund performances.

Competitors:

• iShares Aaa - A Rated Corporate Bond ETF (QLTA): Market Share 8.825%

• SPDR Bloomberg Barclays Short Term Investment Grade Corporate Bond ETF (SCHZ): Market Share.72% These competitors offer similar exposure but differ regarding specific maturities and management approaches. Investors should conduct further research to assess which ETF aligns best with their investment goals and risk tolerance.

  Investment Approach & Strategy -

• Strategy - BSCP actively manages its portfolio rather than strictly tracking an existing index. This allows greater flexibility in selecting individual bonds for inclusion.

• Composition - This ETF exclusively holds investment-grade corporate bonds with maturities on or before December 31, 2029.

  Key points - Benefits -

  • Diversified exposure to U.S. corporations

• Defined maturity with predictable cash flows • Protection against interest rate risk.

Risks-

• Market volatility can significantly impact bond prices. • Default risk exists, although investments are limited to investment-grade bonds.

Who Should Consider Investing-

Investors seeking

Expense Ratio:

• 0.25%

Fundamental AI-rating (1-10):

8.6

**Justification- Strong financial performance combined with a low management fee and defined strategy makes BSCP appealing but considering its limited AUM and active fund management, the overall rating falls slightly beneath a perfect score. It's crucial for potential investments to understand their own tolerance and conduct in-depth research before any purchase.

Resources and Disclaimers

Data source:

Invesco website, ETFdb.com

Disclaimer

This information is solely for educational purposes. This is provided as information only and does not constitute investment and financial advice. Past Performance is not indicative