Invesco extended its BulletShares bond exchange traded fund suite with two new options to help investors gain defined maturity exposure and add on to a bond ladder portfolio strategy through investment-grade and speculative-grade corporate debt.
On Thursday, Invesco launched the BulletShares 2028 Corporate Bond ETF (NYSEArca: BSCS) and BulletShares 2026 High Yield Corporate Bond ETF (NYSEArca: BSJQ), which have a 0.10% and 0.42% expense ratio, respectively.
“Using BulletShares as a means of holding bonds to maturity may help to insulate investors from the risk of rising rates, while further adding value by solving the headache of finding and trading individual bonds,” Jason Bloom, Director of Global Macro ETF Strategy at Invesco, said in a note.
The BulletShares ETF suite tries to combine the advantages of ETF investing with the benefits of individual debt exposure, including the potential ability to match income with future cash-flow needs. The BulletShares ETFs are designed to offer income-seeking investors an easily accessible means of building or managing a laddered income stream.
These defined-maturity bond funds typically buy bonds that mature in the year the ETF will terminate, ensuring that investors can collect the bonds’ face value at maturity, along with a steady income stream along the way. As such, investors are meant to buy-and-hold these securities until maturity.