Invesco ETFs
Explore our lineup of ETFs and see how they can be cost-effective, tax-efficient tools for maximizing your investments and meeting your portfolio objectives.
INVESCO ETFS BulletShares® bond portfolios
Let us do the individual bond work for you, with portfolios customized by maturity, risk, and investment goal with BulletShares.
Why partner with us The precision of bonds. The advantages of ETFs.
In an ever-changing market, a flexible income strategy is key. BulletShares offer potential monthly income and a defined maturity distribution like bonds, with ETF benefits such as diversification, liquidity, transparency, convenience, and cost efficiency.
Bond-like experience
Get the benefits of bonds, including monthly income distributions, final distribution at maturity, trading flexibility, and portfolio diversification.
Precise exposure
Build customized portfolios with ETFs that are tailored to specific maturities, risk preferences and tolerance, and investment goals.
Ease of use
A cost-effective and convenient way to build bond ladders and help manage interest rate risk using fixed income ETFs with consecutively maturing years.
Why build a bond ladder with BulletShares?
BulletShares offer a flexible and cost-effective solution to help you achieve your income goals now and — and in the future. Our Head of Fixed Income ETF Product Strategy Jason Bloom explains why.
What we offer BulletShares ETF suite
BulletShares provide targeted exposure to investment grade and high yield corporate bonds as well as municipal bonds with varying maturity dates.
| MATURITY YEAR | INVESTMENT GRADE Total expense ratio: 0.10% |
HIGH YIELD Total expense ratio: 0.42% |
MUNICIPAL Total expense ratio: 0.18% |
|---|---|---|---|
| 2026 | BSCQ | BSJQ* | BSMQ |
| 2027 | BSCR | BSJR | BSMR |
| 2028 | BSCS | BSJS | BSMS |
| 2029 | BSCT | BSJT | BSMT |
| 2030 | BSCU | BSJU | BSMU |
| 2031 | BSCV | BSJV | BSMV |
| 2032 | BSCW | BSJW | BSMW |
| 2033 | BSCX | BSJX | BSSX |
| 2034 | BSCY | N/A | BSMY |
| 2035 | BSCZ | N/A | BSMZ |
*Total expense ratio: 0.43%
Investment grade corporate bond BulletShares, high yield corporate bond BulletShares, and municipal bond Bulletshares— each with a designated year of maturity ranging from 2026 through 2035 — seek investment results that generally correspond to the performance (before the funds’ fees and expenses) of the corresponding BulletShares USD Corporate Bond Indexes, BulletShares USD High Yield Corporate Bond Indexes, and Invesco BulletShares USD Municipal Bond Indexes.
Frequently asked questions
BulletShares are a suite of defined maturity exchangetraded funds (ETFs) designed to help investors build targeted fixed income portfolios. Each fund holds a diversified basket of bonds that all mature in the same calendar year, helping investors target specific maturity timelines, risk preferences, and investment objectives. By combining the precision of individual bonds with the structural benefits of ETFs, BulletShares offer diversification, transparency, and liquidity. The funds typically distribute income monthly.
A bond ladder is built with individual bonds of varying maturities. As the bonds mature, the anticipated proceeds can be used for income needs or reinvested in new bonds that mature in subsequent years. Investors may use bond ladders to help create some predictability and stability regardless of market volatility and interest rate environments. Since they have specific maturity dates, investors can use BulletShares to build bond ladders without the time and expense of using individual bonds.
BulletShares can provide investors with an efficient way to establish potential protection from rising rates because the duration of the fund slowly rolls down to zero over the life of the ETF. Most traditional fixed income mutual funds and ETFs typically have a perpetual duration target, making them more sensitive to rising interest rates. Investors using BulletShares in bond ladders can also take advantage of rising interest rates by reinvesting the proceeds at maturity into BulletShares that mature in subsequent years and invest in bonds with higher interest rates.
BulletShares provide targeted exposure to investment-grade corporate bonds, high-yield corporate bonds, and municipal bonds.
BulletShares have defined maturities to simulate the investor experience of buying and holding individual bonds to maturity for use in bond ladders and other strategies. BulletShares have designated years of maturities that are included in the fund’s name. Each BulletShares is designed to terminate in December of the designated year and make a final distribution at maturity. At each fund’s expected termination, the net asset value (NAV) of its assets is distributed to investors without any action on their part.
As BulletShares approach maturity, their durations decrease. In the last six months of the ETF’s maturity year, it is anticipated that the bonds in the portfolio will either mature or be called. Proceeds for these events will then be held either in cash or in cash equivalents such as US Treasury bills or commercial paper.
As your BulletShares mature, you may want to consult with an investment professional and explore having the distribution proceeds invested in a BulletShares ETF in a subsequent maturity year.
Discover more from Invesco
Transcript
Title: Why build a bond ladder with BulletShares ETFs
Description: Our BulletShares ETFs offer a flexible and cost-effective solution to help you achieve your income goals now and — and in the future. Our Head of Fixed Income and Alternatives ETF Product Strategy Jason Bloom explains why.
Hello, I’m Jason Bloom head of the Fixed Income ETF Product Strategy team.
Having a flexible and resilient income strategy is crucial because markets are everchanging. Bond ladders are a solution and our BulletShares ETFs offer a convenient and cost-effective solution to implement a ladder to help you achieve your income objectives now — and in the future.
Here’s how.
Think of a bond ladder as a series of bonds on rungs on a ladder with each bond maturing at a different time. As each bond matures, you can use the proceeds to either meet specific financial needs — such as college tuition or an upcoming tax bill — or reinvest the proceeds into new bonds with longer maturities and maintain the ladder.
There are two key reasons why bond ladders can be advantageous:
First, they can provide a predictable and steady income.
Second, you have the flexibility to tailor your portfolio’s maturity and duration profiles and adjust for interest rate changes. If interest rates increase, you can reinvest any proceeds from maturing bonds at higher future interest rates. If interest rates decrease, only a segment of your laddered portfolio has to be reinvested during the low-rate period.
BulletShares ETFs can help make building bond ladders easier and more efficient. They have designated maturity years and cover a range of bond types, including investment-grade corporate, high-yield corporate, and municipal bonds. This allows you to build a bond ladder that matches with your financial goals.
They also combine the best of both worlds — the benefits of individual bonds and the advantages of exchange-traded funds.
Like individual bonds, BulletShares offer the potential for monthly income and a final distribution at maturity. You choose your portfolio’s maturity, yield, and credit quality.
As ETFs, BulletShares provide enhanced diversification, liquidity, transparency, convenience, and cost-effectiveness.
Whether you’re looking to generate steady income, customize your portfolio, or insulate against interest rate fluctuations, BulletShares ETFs provide a robust and versatile tool for building bond ladders.
Let’s build a stronger financial future together.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges, and expenses. For this and more complete information about the Fund call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus.
Important Information
Not a Deposit Not FDIC Insured Not Guaranteed by the Bank May Lose Value Not Insured by any Federal Government Agency
Diversification does not guarantee a profit or eliminate the risk of loss.
Most ETFs disclose their portfolio holdings daily.
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds’ income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds’ income.
An issuer’s ability to prepay principal prior to maturity can limit the funds’ potential gains. Prepayments may require the funds to replace the loan or debt security with a lower yielding security, adversely affecting the funds’ yield.
The funds currently intend to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the funds’ investments. As such, investments in the funds may be less tax-efficient than investments in ETFs that create and redeem in-kind.
Unlike a direct investment in bonds, the funds’ income distributions will vary over time and the breakdown of returns between fund distributions and liquidation proceeds are not predictable at the time of investment. For example, at times the funds may make distributions at a greater (or lesser) rate than the coupon payments received, which will result in the funds returning a lesser (or greater) amount on liquidation than would otherwise be the case. The rate of fund distribution payments may affect the tax characterization of returns, and the amount received as liquidation proceeds upon fund termination may result in a gain or loss for tax purposes.
During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the fund, the ability of the fund to value its holdings becomes more difficult and the judgment of the sub-adviser may play a greater role in the valuation of the fund’s holdings due to reduced availability of reliable objective pricing data.
The funds’ use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
The Fund may invest in privately issued securities, including 144A securities which are restricted (i.e. not publicly traded). The liquidity market for Rule 144A securities may vary, as a result, delay or difficulty in selling such securities may result in a loss to the Fund.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.
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