BSJU Profile
The Invesco BulletShares 2030 High Yield Corporate Bond ETF is designed to offer investors exposure to a portfolio of U.S. dollar-denominated high yield corporate bonds, also known as "junk bonds," with maturities or "effective maturities" in the year 2030. The ETF aims to track the performance of an underlying index that includes high yield bonds issued by corporations, providing a higher-risk, potentially higher-return investment compared to investment-grade bonds. This focus on high yield securities aligns with the fund's goal of capturing returns from the lower credit quality segment of the bond market.
The fund commits to investing at least 80% of its total assets in the securities that comprise its underlying index. This index is specifically constructed to include high yield corporate bonds with maturities in 2030, allowing the ETF to cater to investors seeking fixed income investments with a defined maturity date. High yield bonds are typically rated below investment grade and offer higher yields to compensate for their increased risk, providing an opportunity for higher returns but with greater credit risk.
The investment strategy of the Invesco BulletShares 2030 High Yield Corporate Bond ETF involves selecting bonds that meet the criteria of the high yield segment, focusing on issuers with lower credit ratings. The funds managers seek to identify bonds that offer attractive yield spreads over government securities while managing credit risk through diversification across various sectors and issuers. The ETFs non-diversified nature means it is concentrated in high yield corporate bonds, which can lead to higher volatility and sensitivity to economic and credit market conditions.
Investors in the Invesco BulletShares 2030 High Yield Corporate Bond ETF are provided with a vehicle to potentially capitalize on the higher yields offered by the high yield bond market while targeting a specific maturity date in 2030. This ETF is suited for those who are comfortable with the increased risk associated with high yield bonds and are seeking to align their fixed income investments with a particular investment horizon. The funds strategy aims to deliver enhanced income while navigating the complexities and risks inherent in the high yield corporate bond market.
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