BSMT Profile
The Invesco BulletShares 2029 Municipal Bond ETF is designed to offer targeted exposure to a portfolio of high-quality, U.S. dollar-denominated municipal bonds that are scheduled to mature in the year 2029. In alignment with its investment strategy, the fund generally allocates at least 80% of its total assets to securities that are constituents of its underlying index. This index tracks municipal bonds with maturities or effective maturities in 2029, collectively referred to as 2029 Bonds.
The ETF focuses on investment-grade municipal bonds, which are issued by state and local governments. These bonds are selected for their strong credit ratings and potential for providing tax-exempt income. By concentrating on bonds maturing in 2029, the fund aims to deliver a stable income stream and a defined return of principal upon maturity, catering to investors with a medium-term investment horizon.
As a non-diversified fund, the Invesco BulletShares 2029 Municipal Bond ETF holds a concentrated portfolio of bonds maturing in 2029. This approach provides investors with a predictable investment outcome, but it may also involve specific risks related to the performance of the 2029-maturing bonds and broader fluctuations in the municipal bond market. The fund's concentrated focus ensures that its performance closely mirrors the underlying index, which can help investors align their portfolios with specific financial goals.
Overall, the Invesco BulletShares 2029 Municipal Bond ETF is tailored for investors seeking a structured and tax-efficient fixed-income investment with a clear maturity timeline. The fund's strategy of investing in investment-grade municipal bonds with a set maturity date in 2029 makes it suitable for those looking to achieve a defined financial objective while benefiting from the income tax advantages of municipal bonds. This approach allows investors to balance their portfolios with predictable returns and a clear investment horizon.
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