ATLANTA, Dec. 1, 2021 /PRNewswire/ -- Invesco Ltd.
(NYSE: IVZ), a leading global provider of exchange-traded funds
(ETFs), announced today that the three newest additions to its
BulletShares® ETF suite are available to replace the ETFs
maturing at year-end 2021. BulletShares offer investors access to
defined bond maturities in a transparent1 ETF structure.
The new BulletShares ETFs expand the stated year of maturity of the
firm's BulletShares High Yield Corporate Bond, BulletShares
Corporate Bond and BulletShares Municipal Bond portfolios:
- Invesco BulletShares 2031 Corporate Bond ETF (Ticker:
BSCV)
- Invesco BulletShares 2029 High Yield Corporate Bond ETF
(Ticker: BSJT)
- Invesco BulletShares 2031 Municipal Bond ETF (Ticker:
BSMV)
"The appeal of the unique structure of the BulletShares suite
has not abated in the decade plus since it first launched, and we
are pleased that we can continue to evolve and update the produce
line for existing and future shareholders," explained Anna Paglia, Global Head, ETFs & Indexed
Strategies at Invesco. "These new maturities continue to offer a
simple, goal-oriented investment experience for smaller investors
who may not necessarily have the ability to invest individual bond
ladders."
BulletShares ETFs seek to combine the advantages of ETF
investing with the benefits of individual bonds by offering
increased liquidity2, relatively low costs3
and broad diversification. This may complement the potential
ability for monthly income and cash distribution at
termination4, acting like an individual
bond. Through this structure, BulletShares ETFs may offer
income-seeking investors a unique and easily accessible way to
build or manage a laddered income stream to help match income with
future cash-flow needs.
"BulletShares ETFs have the potential to be immunized from the
interest rate risk that's provided by a bond ladder," said
Jason Bloom, Head of Fixed Income
and Alternatives ETF Product Strategy at Invesco. "In light of the
current compressed yield environment, we are pleased that we can
offer options for rolling the 2021 BulletShares now or in the near
future to access potentially more attractive yields in later-dated
maturities, or even other segments of the debt market."
With the inclusion of the three newly launched BulletShares
ETFs, the full suite of funds will now have defined years of
maturity ranging from 2022 to 2031. Each ETF will terminate no
later than December 31 of its
respective maturity year.5 At termination, each ETF will
make a cash distribution to the then-current shareholders of its
net assets after making appropriate provisions for any
liabilities of the fund. The BulletShares ETF Suite
is comprised of eight High Yield Corporate Bond ETFs, 10 Corporate
Bond ETFs, 10 Municipal Bond ETFs and four Emerging Market
Debt ETFs that each hold a portfolio of bonds that all mature in a
target year. During the final year of maturity, bonds held by
BulletShares will mature and proceeds will be reinvested cash and
cash equivalents, including without limitation U.S. Treasury Bills
and investment grade commercial paper for the High Yield Corporate
and Emerging Market Debt ETFs. For the BulletShares Municipal ETFs,
their proceeds will be reinvested in cash and cash equivalents,
including without limitation Variable Rate Demand Obligations
(VRDOs) and interest-baring cash; however in some circumstances,
such as limited supply, additional instruments may be used.
The new ETFs will track the Nasdaq BulletShares USD High Yield
Corporate Bond 2029 Index, the Nasdaq BulletShares USD Corporate
Bond 2031 Index and the Invesco BulletShares USD Municipal
Bond 2031 Index and will rebalance monthly. BulletShares
Indexes serve as benchmarks to the standard laddered strategy
utilized by investment professionals and retail investors.
Invesco also offers the BulletShares® ETF Bond Ladder
Tool to provide a convenient way to build a hypothetical
laddering strategy with BulletShares, based on maturity and credit
criteria, that can help investors better manage their income stream
and risk exposure.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm
dedicated to delivering an investment experience that helps people
get more out of life. Our distinctive investment teams deliver a
comprehensive range of active, passive and alternative investment
capabilities. With offices in more than 20 countries, Invesco
managed $1.5 trillion in assets on behalf of clients
worldwide as of September 30, 2021. For more information,
visit www.invesco.com.
Important Information
Not a Deposit | Not FDIC Insured
| Not Guaranteed by the Bank | May Lose Value | Not Insured by any
Federal Government Agency
Unlike individual bonds, bond funds have fees and expenses and
most bond funds do not have a maturity date, so holding them until
maturity to avoid losses caused by price volatility is not
possible. The funds do not seek any predetermined amount at
maturity, and the amount an investor receives may be worth more or
less than the original investment. In contrast, an individual bond
matures; an investor typically receives the bond's par or (face
value).
1 ETFs disclose their full portfolio holdings daily.
2 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 100,000 or 150,000 Shares
3 Since ordinary brokerage commissions apply for each buy and sell
transaction, frequent trading activity may increase the cost of
ETFs.
4 The funds do not seek to return any predetermined amount at
maturity, and the amount an investor receives may be worth more or
less than their original investment. In contrast, when an
individual bond matures, an investor typically receives the bond's
par (or face value).
5 The funds will terminate on or about December 15th for the investment grade, high
yield and municipal bond series and on or about December 31st for the emerging market debt series
of their respective maturity year.
6 Diversification does not guarantee a profit or eliminate the risk
of loss.
Nasdaq BulletShares USD Corporate Bond 2030 Index provides
exposure to a diversified basket of US dollar-denominated,
investment grade bonds, all with a maturity — or, in some cases,
effective maturity — of 2030. Nasdaq BulletShares USD High Yield
Corporate Bond 2028 Index provides exposure to a diversified
basked of US dollar-denominated, high yield corporate bonds, all
with a maturity — or, in some cases, effective maturity — of 2030.
Invesco BulletShares USD Municipal Bond 2030 Index provides
exposure to a diversified basket of US dollar-denominated municipal
bonds issued by US states, state agencies, or local governments,
all with a maturity — or, in some cases, effective maturity — of
2030. An investor cannot invest directly in an index.
Invesco is not affiliated with Nasdaq Global Indexes.
About Risk
There are risks involved with investing in
ETFs, including possible loss of money. Shares are not actively
managed and are subject to risks similar to those of stocks,
including those regarding short selling and margin maintenance
requirements. Ordinary brokerage commissions apply. The Fund's
return may not match the return of the Underlying Index. The Funds
are subject to certain other risks. Please see the current
prospectus for more information regarding the risk associated with
an investment in the Funds.
BulletShares ETFs
Investments focused in a particular
sector are subject to greater risk, and are more greatly impacted
by market volatility, than more diversified investments.
The funds are non-diversified and may experience greater volatility
than a more diversified investment.
Interest rate risk refers to the risk that bond prices generally
fall as interest rates rise and vice versa.
During the final year of the funds' operations, as the bonds mature
and the portfolio transitions to cash and cash equivalents, the
funds' yield will generally tend to move toward the yield of cash
and cash equivalents and thus may be lower than the yields of the
bonds previously held by the funds and/or bonds in the market.
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.
BulletShares High Yield ETFs
The values of junk bonds
fluctuate more than those of high quality bonds and can decline
significantly over short time periods.
The risks of investing in securities of foreign issuers, including
emerging market issuers, can include fluctuations in foreign
currencies, political and economic instability, and foreign
taxation issues.
BulletShares Emerging Markets ETFs
The funds 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.
The funds may hold illiquid securities that it may be unable to
sell at the preferred time or price and could lose its entire
investment in such securities.
BulletShares Municipal ETFs
Municipal securities are
subject to the risk that legislative or economic conditions could
affect an issuer's ability to make payments of principal and/ or
interest.
Nasdaq BulletShares® USD Corporate Bond Indexes, Nasdaq
BulletShares® USD High Yield Corporate Bond Indexes, and Invesco
BulletShares® Municipal Bond Indexes are trademarks of Invesco
Indexing LLC (index provider) and have been licensed for use by
Invesco Capital Management LLC (investment adviser). Invesco
Indexing LLC, Invesco Capital Management LLC, and Invesco
Distributors, Inc., ETF distributor, are wholly owned, indirect
subsidiaries of Invesco Ltd.
The opinions expressed herein are based on current market
conditions and are subject to change without notice. These opinions
may differ from those of other Invesco investment
professionals.
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.
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.
Media Relations Contact: Stephanie
Diiorio, 212-278-9037, stephanie.diiorio@invesco.com
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SOURCE Invesco Ltd.