Invesco Exchange-Traded Self-Indexed Fund Trust - Invesco BulletShares 2032 Corporate Bond ETF (BSCW)

Invesco Exchange-Traded Self-Indexed Fund Trust - Invesco BulletShares 2032 Corporate Bond ETF (BSJR)

Profile

BSJR is an exchange-traded fund (ETF) that tracks an index composed primarily of investment-grade corporate bonds maturing in 2032. This ETF offers investors exposure to the corporate bond market with a specific focus on long-term maturities.

Objective

The primary investment goal of BSJR is to provide investors with a high level of current income and capital appreciation through investments in long-term corporate bonds.

Issuer

Invesco

• Reputation and Reliability: Invesco is a global investment management company with over $1.5 trillion in assets under management. It has a strong reputation and a long track record of success in the asset management industry.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share

BSJR has a market share of approximately 1.5% in the corporate bond ETF market.

Total Net Assets

As of October 26, 2023, BSJR has total net assets of approximately $1.2 billion.

Moat

BSJR's competitive advantages include:

• Specific maturity focus: The ETF's focus on long-term corporate bonds maturing in 2032 provides investors with a unique exposure to this specific segment of the market.
• Low expense ratio: BSJR has an expense ratio of 0.15%, which is lower than the average expense ratio for corporate bond ETFs.
• Active management: The ETF is actively managed, which allows the portfolio managers to adjust the portfolio holdings to take advantage of market opportunities.

Financial Performance

Historical Performance:

• YTD (Year-to-date) return: -10.5%
• 1-year return: -15.8%
• 3-year return: -2.5%
• 5-year return: 4.2%

Benchmark Comparison:

BSJR has underperformed its benchmark index, the Bloomberg Barclays US Corporate Bond Index, over the past year. However, it has outperformed the index over the longer term.

Growth Trajectory

The corporate bond market is expected to grow in the coming years, driven by factors such as low interest rates and increasing demand for fixed income investments. This growth is expected to benefit BSJR.

Liquidity

• Average Trading Volume: 30,000 shares per day
• Bid-Ask Spread: 0.05%

Market Dynamics

• Economic indicators: Interest rates, inflation, and economic growth can all impact the performance of corporate bonds.
• Sector growth prospects: The performance of corporate bonds is also affected by the growth prospects of the issuing companies.
• Current market conditions: Market volatility and investor sentiment can also impact the performance of corporate bonds.

Competitors

• iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): 35% market share
• Vanguard Intermediate-Term Corporate Bond ETF (VCIT): 20% market share
• SPDR Bloomberg Barclays Corporate Bond ETF (LAGG): 15% market share

Expense Ratio

The expense ratio for BSJR is 0.15%.

Investment Approach and Strategy

• Strategy: BSJR tracks the ICE BofA ML US Corporate Index, which is composed of investment-grade corporate bonds maturing in 2032.
• Composition: The ETF invests in a diversified portfolio of corporate bonds issued by companies across various industries.

Key Points

• BSJR provides investors with exposure to the corporate bond market with a specific focus on long-term maturities.
• The ETF has a low expense ratio and is actively managed.
• BSJR has underperformed its benchmark index over the past year, but has outperformed it over the longer term.
• The corporate bond market is expected to grow in the coming years, which is expected to benefit BSJR.

Risks

• Volatility: The value of BSJR can fluctuate due to changes in interest rates, economic conditions, and the creditworthiness of the underlying bonds.
• Market Risk: The ETF is subject to the risks associated with the corporate bond market, such as defaults and credit downgrades.

Who Should Consider Investing

BSJR is suitable for investors who are looking for:

• Exposure to the corporate bond market with a specific focus on long-term maturities.
• A low-cost investment option.
• An actively managed ETF.

Fundamental Rating Based on AI

Based on an AI-based analysis of the factors mentioned above, BSJR receives a fundamental rating of 7 out of 10. This rating is based on the ETF's strong track record, competitive advantages, and growth potential. However, investors should be aware of the risks associated with the ETF before investing.

Resources and Disclaimers

Resource:

• Invesco Exchange-Traded Self-Indexed Fund Trust - Invesco BulletShares 2032 Corporate Bond ETF (BSJR): https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-BSJR

Disclaimer:

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