Invesco Exchange-Traded Self-Indexed Fund Trust - BulletShares 2030 High Yield Corporate Bond ETF (BSJU)

ETF Invesco Exchange-Traded Self-Indexed Fund Trust - BulletShares 2030 High Yield Corporate Bond ETF (BSJG)

Profile:

BSJG is a passively managed ETF that tracks the ICE BofAML BB-B US High Yield 2030 Corporate Bond Index. It invests primarily in high-yield corporate bonds maturing in 2030, offering exposure to the high-yield corporate bond market with a specific focus on the 2030 maturity date.

Objective:

The primary investment goal of BSJG is to provide investment results that generally correspond to the price and yield performance of the underlying index. The fund aims to provide investors with:

• Income generation: by investing in high-yield bonds, the fund aims to generate a steady stream of income in the form of interest payments.
• Capital appreciation: through the potential price appreciation of the underlying bonds as they approach maturity.
• Maturity in 2030: by targeting a specific maturity date, the fund offers investors a way to manage their portfolio's duration and interest rate risk.

Issuer:

Invesco Ltd. is a global investment management company with a long and established track record. They are known for their expertise in managing a wide range of investment products, including ETFs.

Reputation and Reliability: Invesco has a strong reputation in the industry, with high ratings from independent agencies like Morningstar. They are considered a reliable and trustworthy issuer.

Management: The fund is managed by a team of experienced portfolio managers with a deep understanding of the high-yield bond market.

Market Share:

BSJG is a relatively new ETF, launched in 2022. It currently has a small market share in the high-yield corporate bond ETF space.

Total Net Assets:

As of October 2023, BSJG has approximately $150 million in assets under management.

Moat:

BSJG leverages Invesco's extensive experience in managing fixed income portfolios and its access to market research and analytics. This allows them to offer a passively managed ETF that seeks to track the performance of a specific index with high accuracy.

Financial Performance:

Since its inception in 2022, BSJG has closely tracked the performance of its underlying index. The fund has delivered positive returns, with an annualized yield of around 8%.

Benchmark Comparison: Compared to other high-yield corporate bond ETFs, BSJG has performed in line with its benchmark, offering investors a competitive return.

Growth Trajectory:

The high-yield corporate bond market is expected to experience growth in the coming years, driven by factors such as low-interest rates and strong corporate earnings. This could lead to increased demand for ETFs like BSJG that offer exposure to this market.

Liquidity:

Average Trading Volume: BSJG has a moderate average trading volume, indicating decent liquidity.

Bid-Ask Spread: The bid-ask spread is relatively low, suggesting that investors can buy and sell shares of the ETF without incurring significant transaction costs.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic growth: A strong economy can lead to increased demand for high-yield bonds, driving up prices and yields.
• Interest rates: Rising interest rates can make high-yield bonds less attractive, leading to lower prices and yields.
• Credit risk: The creditworthiness of companies issuing high-yield bonds can impact the performance of the ETF.

Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
• Vanguard High-Yield Corporate Bond ETF (VHY)

These competitors have a larger market share and higher trading volume compared to BSJG.

Expense Ratio:

The expense ratio for BSJG is 0.35%, which is relatively low compared to other high-yield corporate bond ETFs.

Investment Approach and Strategy:

Strategy: BSJG is a passively managed ETF that tracks the ICE BofAML BB-B US High Yield 2030 Corporate Bond Index.

Composition: The ETF primarily invests in high-yield corporate bonds with a maturity date of 2030. The bonds are selected based on their credit quality and maturity date.

Key Points:

• Provides exposure to the high-yield corporate bond market with a specific focus on the 2030 maturity date.
• Aims to generate income and capital appreciation.
• Passively managed and tracks the performance of a specific index.
• Relatively new ETF with a small market share.
• Low expense ratio.

Risks:

• Interest rate risk: Rising interest rates can lead to lower prices and yields for high-yield bonds.
• Credit risk: The creditworthiness of companies issuing high-yield bonds can impact the performance of the ETF.
• Market volatility: The high-yield bond market can be volatile, leading to potential losses for investors.

Who Should Consider Investing:

BSJG is suitable for investors who:

• Seek income generation and capital appreciation from high-yield corporate bonds.
• Have a long-term investment horizon.
• Are comfortable with the risks associated with high-yield bonds.

Fundamental Rating Based on AI:

7/10

The AI-based rating system considers various factors, including financial performance, market position, and future prospects. BSJG scores well in terms of tracking error and expense ratio but has a limited track record and market share. Overall, the AI system views BSJG as a potentially good investment opportunity for investors seeking exposure to the high-yield bond market with a specific maturity date.

Resources and Disclaimers:

• Invesco Website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-BSJG
• Morningstar: https://www.morningstar.com/etfs/arcx/bsjg/quote
• ICE BofAML BB-B US High Yield 2030 Corporate Bond Index: https://www.baml.com/research/indices/high-yield-corporate-bond-mat-2030-usa-index-bb-b/

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