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

Invesco BulletShares 2032 Corporate Bond ETF (BSCP)

Profile:

The Invesco BulletShares 2032 Corporate Bond ETF is a passively managed exchange-traded fund that seeks to track the performance of the ICE BofA US Corporate 10 Year Index. This ETF invests in investment-grade corporate bonds with maturities around 2032. BSCP offers exposure to the corporate bond market with a focus on longer-term maturities.

Objective:

The primary objective of BSCP is to provide investors with:

• Income: Through regular interest payments from the underlying bonds.
• Capital appreciation: Through price increases in the underlying bonds as they approach maturity.
• Maturity exposure: Focused on bonds maturing around 2032, offering defined maturity date and potential for return of principal.

Issuer:

Invesco

• Reputation and Reliability: Invesco is a global asset management company with a long history dating back to 1935. It manages over $1.6 trillion in assets across various investment products, including ETFs. Invesco 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 is a relatively small ETF within the corporate bond ETF space. Its current market share is approximately 0.5%.

Total Net Assets:

As of November 2023, BSCP has approximately $115 million in total net assets.

Moat:

• Passive Management: BSCP's passive management approach lowers costs compared to actively managed bond funds.
• Specific Maturity Focus: Provides targeted exposure to bonds maturing around 2032, which may be attractive to investors seeking a defined maturity date.
• Invesco's Expertise: Invesco's experience and resources in the fixed income market contribute to the ETF's management and portfolio construction.

Financial Performance:

BSCP has delivered positive returns since its inception in 2017. Its performance has generally tracked its benchmark index, the ICE BofA US Corporate 10 Year Index.

Benchmark Comparison:

BSCP has closely tracked the performance of its benchmark index, demonstrating its ability to effectively replicate the index's performance.

Growth Trajectory:

The demand for fixed income ETFs with specific maturity exposure is expected to continue growing as investors seek diversification and portfolio management tools. BSCP is well-positioned to benefit from this trend.

Liquidity:

• Average Trading Volume: BSCP has an average daily trading volume of approximately 10,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%, indicating good liquidity.

Market Dynamics:

• Interest Rate Environment: Rising interest rates can negatively impact the value of longer-term bonds.
• Economic Growth: Strong economic growth can lead to higher corporate profits, potentially supporting bond prices.
• Credit Risk: Changes in creditworthiness of the underlying bond issuers can affect the ETF's performance.

Competitors:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA) - Market Share: 20%
• SPDR Bloomberg Barclays Corporate Bond ETF (LQD) - Market Share: 15%
• Vanguard Long-Term Corporate Bond ETF (VCLT) - Market Share: 10%

Expense Ratio:

BSCP has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Strategy: BSCP passively tracks the ICE BofA US Corporate 10 Year Index.
• Composition: The ETF invests in investment-grade corporate bonds with maturities around 2032.

Key Points:

• Provides exposure to investment-grade corporate bonds with a defined maturity date around 2032.
• Passively managed, offering lower costs compared to actively managed bond funds.
• Tracks the performance of its benchmark index closely.
• Offers diversification within a fixed income portfolio.

Risks:

• Interest Rate Risk: Rising interest rates can negatively impact the value of longer-term bonds.
• Credit Risk: Changes in creditworthiness of the underlying bond issuers can affect the ETF's performance.
• Market Risk: General market fluctuations can impact the value of the ETF's holdings.

Who Should Consider Investing:

• Investors seeking income and capital appreciation from investment-grade corporate bonds.
• Investors looking for a defined maturity date and potential return of principal around 2032.
• Investors wanting to diversify their fixed income portfolios with a passively managed solution.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, BSCP receives a 7 out of 10 rating. The AI model considers factors such as the ETF's historical performance, expense ratio, issuer reputation, and market trends. This rating indicates that BSCP is a moderately attractive investment within the corporate bond ETF space.

Resources and Disclaimers:

• Invesco BulletShares 2032 Corporate Bond ETF website: https://etf.invesco.com/us/financial-products/product-detail?audienceType=Investor&productId=4287473934969115319
• ICE BofA US Corporate 10 Year Index: https://www.bofa.com/content/dam/bofa/pdf/indexes/us-corporate-10-year.pdf

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