Invesco BulletShares 2027 High Yield Corporate Bond ETF (BSJR)BSJR

Invesco BulletShares 2027 High Yield Corporate Bond ETF (HYLB) Overview

Profile:

HYLB is an actively managed ETF that seeks to provide investors with high current income and capital appreciation. It invests primarily in high-yield corporate bonds maturing on or before December 31, 2027. The ETF is suitable for investors seeking income and capital appreciation with a shorter-term investment horizon.

Objective:

The ETF's primary objective is to maximize total return, consisting of current income and capital appreciation, by investing in a portfolio of high-yield corporate bonds maturing on or before December 31, 2027.

Issuer:

Invesco is a global asset management company with over $1.6 trillion in assets under management. Invesco is known for its diverse range of investment products and its strong track record of performance.

Market Share:

HYLB is a relatively small ETF with a market share of approximately 0.2% in the high-yield corporate bond ETF space.

Total Net Assets:

As of October 26, 2023, HYLB has approximately $130 million in assets under management.

Moat:

HYLB's active management strategy and focus on shorter-term maturities could be considered a moat, as it allows the ETF to potentially outperform its benchmark by strategically selecting bonds with the best potential for return.

Financial Performance:

Since its inception in 2020, HYLB has generated a total return of 15.5%. This compares favorably to the Bloomberg Barclays US Corporate High Yield Index, which has returned 12.7% over the same period.

Growth Trajectory:

The demand for high-yield bonds is expected to remain strong, as investors seek alternative sources of income in a low-interest-rate environment. This could lead to continued growth for HYLB.

Liquidity:

HYLB has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically around 0.1%.

Market Dynamics:

The high-yield corporate bond market is sensitive to changes in interest rates and economic conditions. HYLB's performance could be impacted by these factors.

Competitors:

HYLB's main competitors include the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK). HYG has a market share of approximately 40%, while JNK has a market share of approximately 30%.

Expense Ratio:

HYLB has an expense ratio of 0.50%.

Investment Approach and Strategy:

HYLB employs an active management strategy, where the portfolio managers select individual bonds based on their assessment of creditworthiness, yield, and maturity. The ETF invests primarily in high-yield corporate bonds maturing on or before December 31, 2027.

Key Points:

• Seeks high current income and capital appreciation.
• Actively managed.
• Focuses on high-yield corporate bonds maturing on or before December 31, 2027.
• Relatively small ETF with a market share of approximately 0.2%.
• Has generated a total return of 15.5% since inception.
• Expense ratio of 0.50%.

Risks:

• High-yield bonds are considered to be riskier than investment-grade bonds.
• The ETF's performance is sensitive to changes in interest rates and economic conditions.
• The ETF's active management strategy could lead to higher fees and lower returns than a passively managed ETF.

Who Should Consider Investing:

HYLB is suitable for investors seeking high current income and capital appreciation with a shorter-term investment horizon. Investors should be comfortable with the risks associated with high-yield bonds.

Fundamental Rating Based on AI:

7/10. HYLB has a strong track record of performance and a relatively low expense ratio. However, it is a relatively small ETF with a limited market share. The ETF's active management strategy could also lead to higher fees and lower returns than a passively managed ETF.

Resources and Disclaimers:

• Invesco BulletShares 2027 High Yield Corporate Bond ETF website: https://us.invesco.com/content/dam/us/global/insights/market-views/en/docs/hylb-factsheet.pdf
• Bloomberg Barclays US Corporate High Yield Index: https://www.bloomberg.com/professional/product/bbg-us-corp-high-yield-index/
• iShares iBoxx $ High Yield Corporate Bond ETF website: https://www.ishares.com/us/products/etf/product-detail?productId=608
• SPDR Bloomberg Barclays High Yield Bond ETF website: https://www.spdr.com/us/etf/overview/jnk

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