Invesco BulletShares 2029 High Yield Corporate Bond ETF (BSJT)

ETF Invesco BulletShares 2029 High Yield Corporate Bond ETF Summary:

Profile:

The Invesco BulletShares 2029 High Yield Corporate Bond ETF (BSJG) is a passively managed exchange-traded fund that seeks to track the performance of the ICE BofA US High Yield 2029 Index. This index comprises USD-denominated, non-callable high-yield corporate bonds maturing on or before December 31, 2029. BSJG primarily focuses on the high-yield corporate bond market, aiming to provide investors with exposure to this specific sector through a diversified portfolio.

Objective:

The primary investment goal of BSJG is to generate income in the form of interest payments from the underlying high-yield corporate bonds. Additionally, the fund seeks to provide capital appreciation through price increases of the bonds in the portfolio as they approach maturity in 2029.

Issuer:

Invesco Ltd. is the issuer of BSJG.

Reputation and Reliability:

Invesco is a global investment management company with a strong reputation and a long track record of success. The company manages over $1.4 trillion in assets across a diverse range of investment products, including ETFs, mutual funds, and alternative investments.

Management:

The ETF is managed by a team of experienced portfolio managers at Invesco who have extensive knowledge and expertise in fixed income markets.

Market Share:

BSJG has a market share of approximately 0.3% within the high-yield corporate bond ETF category.

Total Net Assets:

As of November 7, 2023, BSJG has total net assets of $244.37 million.

Moat:

BSJG offers several competitive advantages, including:

• Passive management: The fund's passive management strategy helps to keep expenses low, which can benefit investors in the long run.
• Diversification: BSJG provides investors with exposure to a wide range of high-yield corporate bonds, mitigating risks associated with individual issuer defaults.
• Maturity focus: The fund's focus on bonds maturing in 2029 offers investors the potential for price appreciation as these bonds approach maturity and their interest rate risk diminishes.

Financial Performance:

BSJG has delivered a total return of 7.65% since its inception in 2018.

Benchmark Comparison:

The ETF has outperformed the ICE BofA US High Yield 2029 Index by 0.15% since inception.

Growth Trajectory:

The high-yield corporate bond market is expected to grow in the coming years, driven by factors such as low-interest rates and increasing demand for income-generating assets. This growth trajectory could benefit BSJG.

Liquidity:

BSJG has an average daily trading volume of approximately 24,000 shares, indicating reasonable liquidity.

Bid-Ask Spread:

The bid-ask spread for BSJG is typically around 0.02%, indicating a low cost of trading.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic conditions: A strong economy can lead to increased corporate profits and improved creditworthiness, which can benefit high-yield bonds.
• Interest rates: Rising interest rates can negatively impact high-yield bonds as they become less attractive compared to other fixed income investments.
• Default rates: An increase in corporate defaults could lead to losses for the ETF.

Competitors:

Key competitors of BSJG include:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
• VanEck Merk High Yield Bond ETF (HYLB)

Expense Ratio:

The expense ratio for BSJG is 0.25%, which is considered relatively low for actively managed high-yield bond ETFs.

Investment Approach and Strategy:

• Strategy: BSJG passively tracks the ICE BofA US High Yield 2029 Index.
• Composition: The ETF invests in USD-denominated, non-callable high-yield corporate bonds maturing on or before December 31, 2029.

Key Points:

• Invests in high-yield corporate bonds maturing in 2029.
• Aims to generate income and price appreciation.
• Passively managed with low expenses.
• Diversified portfolio mitigates issuer-specific risks.
• Potentially benefits from high-yield corporate bond market growth.

Risks:

• Volatility: High-yield bonds can be more volatile than other fixed income investments.
• Market Risk: The value of the ETF can be affected by changes in interest rates, economic conditions, and default rates.
• Credit Risk: The bonds held by the ETF are subject to credit risk, meaning the issuer may default on its obligations.

Who Should Consider Investing:

BSJG is suitable for investors seeking:

• Income generation through interest payments.
• Potential capital appreciation from price increases.
• Exposure to the high-yield corporate bond market.
• A passively managed, low-cost investment option.

Disclaimer:

This summary is intended for informational purposes only and should not be considered investment advice. Always conduct your research and consult with a financial advisor before making any investment decisions.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, BSJG receives a fundamental rating of 7.5 out of 10. This indicates a solid overall investment

Resources:

• Invesco BulletShares 2029 High Yield Corporate Bond ETF Website: https://us.invesco.com/content/us/en/products/etfs/summary.overview.fund/bsjg/
• Morningstar BSJG ETF Page: https://www.morningstar.com/etfs/arcx/bsjg/performance
• ICE BofA US High Yield 2029 Index: https://www.bofa.com/en-us/accessing-markets/fixed-income-markets/high-yield/index.html