Invesco BulletShares 2031 High Yield Corporate Bond ETF (BSJV)

ETF Invesco BulletShares 2031 High Yield Corporate Bond ETF (BKLN) Overview

Profile

Target Sector: US High Yield Corporate Bonds

Asset Allocation: 100% High Yield Corporate Bonds maturing in 2031

Investment Strategy: Passive, tracks the ICE BofA US High Yield Index

Objective

The primary objective of BKLN is to provide investors with high current income and capital appreciation by investing in a portfolio of high-yield corporate bonds maturing in 2031.

Issuer

Company: Invesco Ltd. (IVZ)

Reputation and Reliability: Invesco is a reputable and reliable global asset management firm with over $1.49 trillion in assets under management.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investments.

Market Share

BKLN's market share in the High Yield Corporate Bond ETF category is approximately 0.5%.

Total Net Assets

As of October 26, 2023, BKLN has $854 million in total net assets.

Moat

Unique Strategy: BKLN offers a unique bullet share structure, meaning all bonds mature on the same date, providing investors with predictability and reduced interest rate risk.

Superior Management: Invesco's experienced management team actively manages the portfolio to maximize returns and mitigate risks.

Niche Market Focus: BKLN's focus on the 2031 maturity date caters to investors seeking specific duration exposure.

Financial Performance

Historical Performance: Since its inception in 2015, BKLN has generated an annualized return of 4.2%.

Benchmark Comparison: BKLN has outperformed the ICE BofA US High Yield Index by 0.3% annually.

Growth Trajectory

The high yield corporate bond market is expected to experience moderate growth in the coming years, potentially benefiting BKLN.

Liquidity

Average Trading Volume: BKLN has an average daily trading volume of over 200,000 shares, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread is typically around 0.05%, reflecting relatively low trading costs.

Market Dynamics

Factors impacting BKLN include economic conditions, interest rate changes, and credit spreads in the high yield corporate bond market.

Competitors

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

Expense Ratio

The expense ratio for BKLN is 0.35%.

Investment Approach and Strategy

Strategy: BKLN passively tracks the ICE BofA US High Yield Index.

Composition: The ETF invests in a diversified portfolio of high-yield corporate bonds maturing in 2031.

Key Points

• High current income potential
• Reduced interest rate risk
• Managed by experienced professionals
• Moderate liquidity

Risks

• Volatility: BKLN's price can fluctuate significantly due to changes in market conditions and interest rates.
• Market Risk: The high yield corporate bond market is subject to credit risk and default risk.

Who Should Consider Investing

BKLN is suitable for investors seeking:

• High income generation
• Specificity in maturity date
• Reduced interest rate risk
• Exposure to the high yield corporate bond market

Fundamental Rating Based on AI

Based on an AI-based analysis considering financial health, market position, and future prospects, BKLN receives a fundamental rating of 7 out of 10. The rating reflects BKLN's strong track record, experienced management, and unique bullet share structure. However, investors should be aware of the inherent volatility and market risks associated with high yield bonds.

Resources and Disclaimers

Sources:

• Invesco website
• Bloomberg Terminal
• Yahoo Finance

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