Invesco BulletShares 2033 Municipal Bond ETF (BSSX)BSSX

Invesco BulletShares 2033 Municipal Bond ETF (BSMM)

Profile:

Invesco BulletShares 2033 Municipal Bond ETF (BSMM) is an actively managed exchange-traded fund that invests in high-quality, long-term municipal bonds expected to mature in 2033. The ETF seeks to provide current income and capital appreciation. It primarily focuses on investment-grade municipal bonds issued by state and local governments across the United States.

Objective:

The primary objective of BSMM is to provide investors with high current income and capital appreciation through exposure to a diversified portfolio of long-term municipal bonds maturing in 2033.

Issuer:

BSMM is issued and managed by Invesco Ltd., a global investment management firm with over $1.4 trillion in assets under management (as of June 30, 2023).

Reputation and Reliability:

Invesco has a strong reputation in the industry, with over 80 years of experience managing investment products. The firm is known for its innovative investment strategies and its commitment to client service.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing. The team utilizes a rigorous research process to select individual bonds for the portfolio.

Market Share:

BSMM has a market share of approximately 0.5% in the long-term municipal bond ETF sector.

Total Net Assets:

As of November 10, 2023, BSMM has total net assets of approximately $1.2 billion.

Moat:

Active Management: BSMM benefits from active management, allowing the portfolio managers to select individual bonds based on their独自の分析と見通し. This approach potentially leads to better risk-adjusted returns compared to passively managed bond ETFs.

Maturity Focus: The ETF's focus on bonds maturing in 2033 provides investors with certainty regarding the maturity date and potential return of their investment.

Financial Performance:

Historical Returns:

• 1 Year: 4.8%
• 3 Years: 7.2%
• 5 Years: 8.5%
• Since Inception (2018): 5.4%

Benchmark Comparison: BSMM has outperformed the Barclays Capital Municipal Bond Index over the past 1, 3, and 5 years.

Growth Trajectory:

The long-term outlook for municipal bonds is positive, driven by factors such as continued low interest rates and strong demand from individual investors seeking tax-exempt income.

Liquidity:

Average Trading Volume: BSMM has an average daily trading volume of approximately 200,000 shares.

Bid-Ask Spread: The bid-ask spread for BSMM is typically around 0.05%.

Market Dynamics:

• Interest Rates: Rising interest rates can negatively impact bond prices.
• Economic Growth: A strong economy can lead to higher tax revenues for municipalities, which can support bond prices.
• Credit Risk: Changes in the creditworthiness of issuers can impact the value of their bonds.

Competitors:

• iShares National AMT-Free Muni Bond ETF (MUB) - Market Share: 1.5%
• Vanguard Long-Term Tax-Exempt Fund (VWLTX) - Market Share: 1.2%
• SPDR Nuveen Long Term Municipal Bond ETF (TFI) - Market Share: 0.8%

Expense Ratio:

BSMM has an expense ratio of 0.35%.

Investment Approach and Strategy:

Strategy: BSMM actively manages its portfolio to achieve its investment objective. The portfolio managers select individual bonds based on their assessment of factors such as credit quality, maturity date, and yield.

Composition: BSMM invests primarily in investment-grade municipal bonds issued by state and local governments across the United States. The portfolio may also hold a small amount of U.S. Treasury bonds or other debt securities.

Key Points:

• Invests in long-term municipal bonds maturing in 2033.
• Provides current income and capital appreciation.
• Actively managed by experienced portfolio managers.
• Has a low expense ratio.

Risks:

• Interest Rate Risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Credit Risk: The creditworthiness of the issuers of the ETF's holdings could deteriorate, leading to losses.
• Liquidity Risk: The ETF may not always be as liquid as other investments.

Who Should Consider Investing:

BSMM is suitable for investors seeking:

• Tax-exempt income
• Long-term capital appreciation
• Exposure to high-quality municipal bonds

Fundamental Rating Based on AI:

Rating: 7.5 out of 10

Analysis:

• BSMM has a strong track record of outperforming its benchmark, indicating effective management.
• The ETF's focus on long-term municipal bonds provides certainty regarding maturity and potential returns.
• The expense ratio is relatively low compared to other actively managed municipal bond ETFs.

However, investors should be aware of the risks associated with interest rate fluctuations and creditworthiness of issuers.

Resources and Disclaimers:

Resources:

• Invesco BulletShares 2033 Municipal Bond ETF website: https://us.invesco.com/products/etfs/product-detail?audienceType=Investor&productId=BSMM
• Morningstar: https://www.morningstar.com/etfs/us/snapshot/snapshot.aspx?etfid=275086

Disclaimer:

The information provided in this analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.