Invesco BulletShares 2030 Corporate Bond ETF (BSCU)

ETF Invesco BulletShares 2030 Corporate Bond ETF Summary:

Profile: Invesco BulletShares 2030 Corporate Bond ETF (BSJ) is a passively managed exchange-traded fund that invests in investment-grade, fixed-rate corporate bonds maturing in 2030. It offers exposure to the corporate bond market with a specific maturity date, aiming to provide investors with a predictable and steady stream of income until the bonds mature.

Objective: The primary objective of BSJ is to closely track the performance of the ICE BofA US Corporate Master Index due 2030 before fees and expenses.

Issuer: Invesco Ltd. (IVZ) is the issuer of BSJ. Invesco is a renowned global asset management company with a strong reputation and a long track record in the financial industry. The company manages over $1.68 trillion in assets across various investment products.

Market Share: BSJ currently holds a market share of approximately 0.5% within the corporate bond ETF sector.

Total Net Assets: BSJ has approximately $718.7 million in total net assets as of November 8, 2023.

Moat: BSJ's competitive advantages include its:

• Specific Maturity Date: The ETF provides investors with the certainty of knowing when their bonds will mature, allowing for better financial planning.
• Passive Management: The fund's passive management approach leads to lower costs compared to actively managed bond funds.
• Invesco's Expertise: Invesco's vast experience and expertise in fixed income management provide investors with confidence in the ETF's management.

Financial Performance: BSJ has historically delivered competitive returns. Over the past 3 years, the ETF has generated an annualized return of 3.4%, outperforming its benchmark index by 0.2%.

Growth Trajectory: The corporate bond market is expected to experience moderate growth in the coming years, driven by factors such as increasing demand for fixed income investments and potential interest rate hikes.

Liquidity: BSJ has a relatively high average daily trading volume of approximately 60,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, averaging around 0.01%.

Market Dynamics: Key factors affecting BSJ's market environment include:

• Interest Rates: Rising interest rates could potentially decrease the value of the ETF's holdings.
• Economic Growth: A strong economy can lead to increased corporate borrowing and potentially higher bond yields.
• Credit Risk: Changes in the creditworthiness of the companies issuing the bonds could impact the ETF's performance.

Competitors: Major competitors in the corporate bond ETF space include iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) with a market share of 28.6% and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) with a market share of 14.7%.

Expense Ratio: BSJ's expense ratio is 0.15%, which is lower than the average expense ratio for corporate bond ETFs.

Investment Approach and Strategy: BSJ employs a passive management strategy, tracking the ICE BofA US Corporate Master Index due 2030. The ETF invests in a diversified portfolio of investment-grade corporate bonds with maturities in 2030.

Key Points:

• Provides targeted exposure to corporate bonds maturing in 2030.
• Offers predictable income stream until maturity.
• Passively managed with a low expense ratio.
• Managed by a reputable and experienced asset manager.

Risks:

• Interest rate risk: Bond prices generally decline when interest rates rise.
• Credit risk: The possibility that the bond issuers may default on their obligations.
• Liquidity risk: The ETF's trading volume may decline, making it difficult to buy or sell shares quickly.

Who Should Consider Investing: BSJ is suitable for investors seeking:

• A steady stream of income with a defined maturity date.
• Exposure to the corporate bond market without active management fees.
• Diversification within their fixed income portfolio.

Fundamental Rating Based on AI:

Based on an analysis of BSJ's financials, market position, and future prospects, an AI-based rating system assigns the ETF a 7.5 out of 10. This score reflects the ETF's strong credit quality, experienced management, and potential for stable income generation. However, investors should be aware of potential interest rate and credit risks.

Resources and Disclaimers:

• Invesco BulletShares 2030 Corporate Bond ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=BSJ
• Morningstar: https://www.morningstar.com/etfs/arcx/bsj/quote
• YCharts: https://ycharts.com/indicators/invesco_bulletshares_2030_corporate_bond_etf_total_net_assets

Disclaimer: This information is intended for general knowledge and informational purposes only and does not constitute professional financial advice. It is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.