Invesco BulletShares 2033 Corporate Bond ETF (BSCX)

Invesco BulletShares 2033 Corporate Bond ETF (BSCM) Overview

Profile:

The Invesco BulletShares 2033 Corporate Bond ETF is a passively managed exchange-traded fund (ETF) that tracks the ICE BofA US Corporate Index due 03/30/2033. This means it invests in a basket of investment-grade corporate bonds maturing on March 30, 2033. The ETF aims to provide investors with exposure to the long-term corporate bond market with a maturity date of 2033.

Objective:

The primary investment goal of BSCM is to provide investors with a high level of current income and capital appreciation through investment in a portfolio of corporate bonds maturing in 2033.

Issuer:

Invesco is a global investment management firm with over $1.5 trillion in assets under management. The firm has a strong reputation for its diverse investment products and services, including ETFs. Invesco is known for its expertise in fixed income investing, making them a reliable issuer for bond-focused ETFs like BSCM.

Market Share:

BSCM is a relatively small ETF in the corporate bond market, with a market share of around 0.2%. However, it is the only ETF that specifically targets the 2033 maturity date within the corporate bond market.

Total Net Assets:

As of November 8, 2023, BSCM has approximately $240 million in total net assets.

Moat:

BSCM's main competitive advantage is its unique focus on the 2033 maturity date. This provides investors with a targeted exposure to the long-term corporate bond market with a specific maturity date. Additionally, Invesco's expertise in fixed income investing and its strong reputation add to BSCM's moat.

Financial Performance:

BSCM has a track record of delivering positive returns. Over the past year, the ETF has returned approximately 12%, outperforming its benchmark index. This performance is likely due to the recent rise in interest rates, which benefits long-term bonds.

Growth Trajectory:

The demand for long-term corporate bonds is expected to grow in the coming years as investors seek higher yields in a low-interest-rate environment. This bodes well for BSCM's future growth prospects.

Liquidity:

BSCM has an average daily trading volume of approximately 10,000 shares. This indicates moderate liquidity, which should be sufficient for most investors. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

The corporate bond market is sensitive to interest rate changes and economic conditions. Rising interest rates can negatively impact bond prices, while a strong economy can boost corporate earnings and improve bond creditworthiness.

Competitors:

BSCM's main competitors include other corporate bond ETFs with different maturity dates, such as iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Vanguard Long-Term Corporate Bond ETF (VCLT).

Expense Ratio:

The expense ratio for BSCM is 0.15%, which is relatively low for a corporate bond ETF.

Investment Approach and Strategy:

BSCM tracks the ICE BofA US Corporate Index due 03/30/2033, meaning it passively invests in the same basket of bonds that make up the index. The ETF holds a diversified portfolio of investment-grade corporate bonds with a maturity date of March 30, 2033.

Key Points:

• Targeted exposure to the 2033 maturity date in the corporate bond market.
• Passively managed ETF tracking the ICE BofA US Corporate Index due 03/30/2033.
• Diversified portfolio of investment-grade corporate bonds.
• High level of current income and potential for capital appreciation.
• Moderate liquidity and low expense ratio.

Risks:

• Interest rate risk: Rising interest rates can negatively impact bond prices.
• Credit risk: The possibility that the issuer of the bond may default on its obligations.
• Market risk: General market conditions can impact the performance of the ETF.

Who Should Consider Investing:

BSCM is suitable for investors seeking:

• High current income: The ETF offers a high level of current income through its regular interest payments.
• Long-term capital appreciation: The ETF has the potential for capital appreciation as the underlying bonds approach their maturity date.
• Targeted exposure to the 2033 maturity date: The ETF provides investors with a specific exposure to the 2033 maturity date in the corporate bond market.

Evaluation of BSCM's Fundamentals using an AI-based rating system:

Fundamental Rating Based on AI: 7.5/10

BSCM receives a 7.5 out of 10 rating based on an AI-based analysis of its fundamentals. This rating is driven by the ETF's strong track record, moderate liquidity, and low expense ratio. Additionally, the ETF's unique focus on the 2033 maturity date provides investors with a differentiated investment opportunity. However, the ETF's exposure to interest rate risk and credit risk should be considered before investing.

Resources and Disclaimers:

• Invesco BulletShares 2033 Corporate Bond ETF website: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=ETF-1472
• ICE BofA US Corporate Index: https://www.bofa.com/en-us/insights/ice-bofa-indices/products/us-indices/ice-bofa-us-corporate-index
• Morningstar: https://www.morningstar.com/etfs/us/snapshot/snapshot.aspx?symbol=BSCM
• 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.