Invesco BulletShares 2028 High Yield Corporate Bond ETF (BSJS)

Invesco BulletShares 2028 High Yield Corporate Bond ETF (BJK)

Profile:

Target Sector: High Yield Corporate Bonds Asset Allocation: 100% High Yield Corporate Bonds Investment Strategy: Actively managed, seeks to track the ICE BofA US High Yield Index 2028 with approximately 300 holdings

Objective:

The primary investment goal of BJK is to provide investors with high current income and capital appreciation from the high yield corporate bond market. The fund seeks to track the performance of the ICE BofA US High Yield Index 2028.

Issuer:

Invesco

• Reputation and Reliability: Invesco is a well-respected and experienced asset management firm with over $1.7 trillion in assets under management.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

BJK's market share within the High Yield Corporate Bond ETF sector is approximately 4.45%.

Total Net Assets:

As of November 8, 2023, BJK has $5.12 billion in total net assets.

Moat:

• Active Management: The active management style allows for more flexibility in portfolio construction and the potential to outperform the benchmark.
• Experienced Team: Invesco's experienced management team provides valuable insight and knowledge of the high yield market.
• Diversification: BJK holds approximately 300 different bonds, reducing concentration risk and offering broad market exposure.

Financial Performance:

• Year to Date: +4.3%
• 1 Year: +13.5%
• 3 Years: +35.2%
• 5 Years: +64.7%

Benchmark Comparison: BJK has outperformed the ICE BofA US High Yield Index 2028 over the past year and three years.

Growth Trajectory:

The high yield market is expected to remain attractive for investors seeking income and potential capital appreciation. However, interest rate increases and economic slowdowns can affect the performance of high yield bonds.

Liquidity:

• Average Trading Volume: 352,229 shares per day
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Interest Rate Hikes: Increased interest rates can negatively impact bond prices, including high yield bonds.
• Economic Growth: A strong economy can lead to increased demand for high yield bonds and improved issuer credit quality.
• Market Volatility: Overall market volatility can affect the performance of all asset classes, including high yield bonds.

Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG): 13.4% market share
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK): 12.8% market share
• **VanEck Merk High Yield Bond ETF (HYLB): ** 4.8% market share

Expense Ratio:

BJK has an expense ratio of 0.60%.

Investment Approach and Strategy:

• Strategy: Actively managed to track the ICE BofA US High Yield Index 2028.
• Composition: Invests in a diversified portfolio of high yield corporate bonds with maturities in 2028.

Key Points:

• Seeks high current income and capital appreciation.
• Actively managed with an experienced team.
• Diversified portfolio of approximately 300 bonds.
• Average daily trading volume provides good liquidity.

Risks:

• Interest Rate Risk: Rising interest rates can decrease the value of the underlying bonds.
• Market Risk: High yield bonds are considered more volatile than investment-grade bonds.
• Credit Risk: Issuers may not be able to repay the debt, potentially resulting in losses for the ETF.

Who Should Consider Investing:

• Investors seeking high income and potential capital appreciation.
• Investors willing to accept the risks associated with high yield bonds.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI: 7/10

BJK possesses a good combination of active management, experienced leadership, and diversified holdings. It has historically outperformed the benchmark but carries inherent risks associated with high yield bonds. The AI rating of 7/10 reflects a solid fundamental framework but acknowledges the sensitivity to market fluctuations and credit risk.

Resources and Disclaimers:

• Invesco website: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=ETF-322306-263874
• ETF Database: https://etfdb.com/etf/BJK/invesco-bulletshares-2028-high-yield-corporate-bond-etf/
• High Yield Corporate Bond Index: https://www.ice.com/products/indices/bbg-barclays-us-corporate-high-yield-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice.

Please note that I am unable to provide investment advice or make recommendations. The information provided above is intended as a starting point for your own research and analysis.