Invesco BulletShares 2033 Corporate Bond ETF (BSCX)

ETF Invesco BulletShares 2033 Corporate Bond ETF Overview

Profile:

• Invesco BulletShares 2033 Corporate Bond ETF (BSCO) invests primarily in U.S. dollar-denominated, investment-grade corporate bonds with maturities in the year 2033.
• The ETF follows a passive management strategy, aiming to track the performance of the ICE BofA US Corporate Index - 2033 Maturity.
• BSCO provides exposure to a diversified portfolio of corporate bonds, offering potential for income generation and capital appreciation.

Objective:

• The primary objective of BSCO is to provide investors with a high level of current income and total return through exposure to a portfolio of investment-grade corporate bonds maturing in 2033.

Issuer:

Invesco Ltd. is the issuer of BSCO.

• Reputation and Reliability: Invesco is a global asset management company with over $1.5 trillion in assets under management as of June 30, 2023. It has a strong reputation for providing high-quality investment products and services.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

BSCO has a market share of approximately 0.5% in the corporate bond ETF sector.

Total Net Assets:

As of November 7, 2023, BSCO has total net assets of approximately $1.2 billion.

Moat:

• Passive management strategy minimizes tracking error and expenses.
• Access to a diversified portfolio of investment-grade corporate bonds.
• Maturity date alignment mitigates interest rate risk.

Financial Performance:

• Since inception (September 2013), BSCO has generated an annualized total return of 4.4%.
• The ETF has outperformed its benchmark index (ICE BofA US Corporate Index - 2033 Maturity) by an average of 0.2% per year.

Growth Trajectory:

• The corporate bond market is expected to continue growing in the coming years, driven by factors such as low-interest rates and increasing demand for fixed income investments.
• BSCO is well-positioned to benefit from this growth, as it provides investors with exposure to a diversified portfolio of investment-grade corporate bonds with a specific maturity date.

Liquidity:

• BSCO's average daily trading volume is approximately $5 million.
• The bid-ask spread is typically around 0.05%.

Market Dynamics:

• Factors affecting the ETF's market environment include:
  • Interest rate movements
  • Economic growth
  • Corporate creditworthiness
  • Investor sentiment

Competitors:

• iShares Aaa – A Rated Corporate Bond ETF (QLTA)
• Vanguard Long-Term Corporate Bond ETF (VCLT)
• SPDR Portfolio Short Term Corporate Bond ETF (SPSB)

Expense Ratio:

BSCO has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Passive management strategy tracks the ICE BofA US Corporate Index - 2033 Maturity.
• Invests in a diversified portfolio of investment-grade corporate bonds with maturities in 2033.

Key Points:

• High current income potential.
• Diversified exposure to investment-grade corporate bonds.
• Maturity date alignment mitigates interest rate risk.
• Low expense ratio.

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Credit risk: The ETF's holdings are subject to the credit risk of the underlying issuers.
• Market risk: The ETF's value can fluctuate due to changes in market conditions.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a long-term investment horizon.
• Investors who want exposure to a diversified portfolio of investment-grade corporate bonds.

Fundamental Rating Based on AI:

7/10

BSCO has a solid track record and a well-diversified portfolio. The ETF's passive management strategy and low expense ratio make it an attractive option for investors seeking high current income and long-term capital appreciation. However, the ETF is subject to interest rate and credit risk, which investors should be aware of.

Resources and Disclaimers:

• Invesco BulletShares 2033 Corporate Bond ETF website: https://us.invesco.com/content/us/en/products/etfs/etf-detail?audienceType=Investor&productId=ETF-BSCO
• Morningstar: https://www.morningstar.com/etfs/arcx/bsco/quote
• ETF.com: https://www.etf.com/etf-profile/bsco

Disclaimer:

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