Invesco BulletShares 2031 Corporate Bond ETF (BSCV)

Invesco BulletShares 2031 Corporate Bond ETF (BSCO) Overview

Profile:

Invesco BulletShares 2031 Corporate Bond ETF (BSCO) is a passively managed exchange-traded fund (ETF) that invests in U.S. dollar-denominated investment-grade corporate bonds maturing in 2031. The ETF seeks to provide investors with exposure to the performance of the ICE BofA US Corporate Index, which tracks the performance of investment-grade corporate bonds with maturities of 10 years or less.

Objective:

The primary investment goal of BSCO is to provide investors with a high level of current income and capital appreciation through exposure to a portfolio of investment-grade corporate bonds maturing in 2031.

Issuer:

Invesco Ltd.

• Reputation and Reliability: Invesco is a global investment management firm with over 80 years of experience and over $1.44 trillion in assets under management.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investments.

Market Share & Total Net Assets:

• Market Share: BSCO holds a market share of 0.04% in the U.S. corporate bond ETF market.
• Total Net Assets: As of November 8, 2023, BSCO has approximately $544 million in assets under management.

Moat:

• Maturity Focus: BSCO's focus on 2031 maturities provides investors with a defined maturity date and helps to mitigate interest rate risk.
• Passive Management: The ETF's passive management approach aims to minimize tracking error and expenses compared to actively managed bond funds.

Financial Performance:

• Historical Performance: BSCO has delivered a total return of 11.22% since its inception in March 2021.
• Benchmark Comparison: BSCO has outperformed the ICE BofA US Corporate Index by 0.25% since its inception.

Growth Trajectory:

The demand for fixed income investments with defined maturities is expected to continue, driven by investors seeking to manage interest rate risk and generate current income.

Liquidity:

• Average Trading Volume: BSCO has an average daily trading volume of approximately 15,000 shares.
• Bid-Ask Spread: The bid-ask spread for BSCO is typically around 0.02%.

Market Dynamics:

• Economic Indicators: Interest rate hikes by the Federal Reserve could negatively impact the ETF's performance.
• Sector Growth Prospects: The corporate bond market is expected to remain attractive to investors seeking income and diversification.
• Current Market Conditions: Market volatility could impact the ETF's price and liquidity.

Competitors:

• iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) (Market Share: 37.5%)
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT) (Market Share: 11.4%)
• SPDR Bloomberg Barclays Corporate Bond ETF (LAGG) (Market Share: 9.2%)

Expense Ratio:

BSCO has an expense ratio of 0.15%.

Investment Approach & Strategy:

• Strategy: BSCO tracks the ICE BofA US Corporate Index.
• Composition: The ETF invests in a portfolio of investment-grade corporate bonds with maturities of 10 years or less.

Key Points:

• Provides exposure to investment-grade corporate bonds maturing in 2031.
• Seeks to provide current income and capital appreciation.
• Passively managed, aiming to minimize tracking error and expenses.
• Offers a defined maturity date to help manage interest rate risk.

Risks:

• Interest rate risk: Rising interest rates could lead to a decline in the value of the ETF's portfolio.
• Credit risk: The ETF is exposed to the credit risk of the underlying bonds.
• Liquidity risk: The ETF's liquidity could be impacted by market conditions.

Who Should Consider Investing:

BSCO is suitable for investors seeking:

• Current income and capital appreciation potential.
• Exposure to investment-grade corporate bonds.
• A defined maturity date to manage interest rate risk.

Fundamental Rating Based on AI: 8.5

BSCO receives an AI-based rating of 8.5, indicating strong fundamentals. This rating is based on an analysis of the factors mentioned above, including the ETF's financial health, market position, and future prospects.

Resources and Disclaimers:

• Sources:
  • Invesco BulletShares 2031 Corporate Bond ETF (BSCO) website: https://us.invesco.com/product/etf/etf-detail?audienceType=Investor&productId=ETF-720048070
  • Morningstar: https://www.morningstar.com/etfs/arcx/bsco/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.