Invesco BulletShares 2029 Municipal Bond ETF (BSMT)

Invesco BulletShares 2029 Municipal Bond ETF (BSM)

Profile:

BSM is an actively managed ETF that invests in high-quality, long-term municipal bonds maturing in 2029. It aims to provide investors with tax-exempt income and potential capital appreciation.

Objective:

The primary goal of BSM is to generate tax-exempt income and long-term capital appreciation by investing in a portfolio of municipal bonds maturing in 2029.

Issuer:

Invesco Ltd. (IVZ)

• Reputation and Reliability: Invesco is a well-established and respected global asset manager with over $1.4 trillion in assets under management (AUM) as of January 31, 2023.

• Management: The ETF is actively managed by a team of experienced fixed income portfolio managers with a strong track record.

Market Share:

As of October 26, 2023, BSM held a market share of 0.3% in the Long-Term Municipal Bond ETF category.

Total Net Assets:

BSM's total net assets as of October 26, 2023, were $214.4 million.

Moat:

• Unique Strategy: BSM focuses on a specific maturity date, which provides investors with predictable cash flows and helps manage interest rate risk.
• Experienced Management: The ETF is actively managed by a team with a strong track record in managing municipal bond portfolios.

Financial Performance:

• Historical Returns: Since inception in August 2015, BSM has generated an annualized return of 4.22%.
• Benchmark Comparison: BSM has outperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, over various timeframes.

Growth Trajectory:

BSM is expected to benefit from rising interest rates as its portfolio matures. However, the overall growth potential for long-term municipal bond ETFs is moderate.

Liquidity:

• Average Daily Volume: Approximately 41,000 shares
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Economic Indicators: Rising interest rates can benefit BSM as its portfolio matures.
• Sector Growth: The long-term municipal bond market is expected to see moderate growth.
• Current Market Conditions: Market volatility and economic uncertainty can impact BSM's performance.

Top 5 Competitors:

Expense Ratio: 0.28%

Investment Approach and Strategy:

• Strategy: Actively managed.
• Composition: BSM invests primarily in long-term municipal bonds maturing in 2029. The portfolio may also include short-term and intermediate-term municipal bonds.

Key Points:

• Tax-exempt income and potential capital appreciation
• Actively managed by an experienced team
• Focuses on a specific maturity date
• Moderate growth potential

Risks:

• Interest rate risk: Rising interest rates can decrease the value of the bonds in BSM's portfolio.
• Credit risk: The bonds in BSM's portfolio are subject to credit risk, meaning the issuer may default on its payments.
• Liquidity risk: BSM may be less liquid than other ETFs, making it more difficult to buy and sell shares.

Who Should Consider Investing:

BSM is suitable for investors seeking tax-exempt income and moderate capital appreciation from their long-term municipal bond investments. It is important to note that the ETF's specific investment objectives, risks, and charges should be carefully considered before investing.

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, including financial health, market position, and future prospects, an AI-based rating system assigns BSM a fundamental rating of 7 out of 10. This indicates that the ETF has a solid foundation and positive long-term growth potential.