Invesco is expanding its range of BulletShares UCITS ETFs with the launch of five EUR-denominated investment-grade corporate bond funds. These fixed-maturity products combine the benefits of investing in individual bonds, the diversification associated with a fund and the low-cost, transparency and liquidity of an ETF. Mirroring the firm’s existing USD range, these new ETFs will offer investors a choice of maturity dates ranging from 2026 to 2030, with Accumulating and Distributing shares available for each ETF.
EUR-denominated UCITS ETF range:
- Invesco BulletShares 2026 EUR Corporate Bond UCITS ETF
- Invesco BulletShares 2027 EUR Corporate Bond UCITS ETF
- Invesco BulletShares 2028 EUR Corporate Bond UCITS ETF
- Invesco BulletShares 2029 EUR Corporate Bond UCITS ETF
- Invesco BulletShares 2030 EUR Corporate Bond UCITS ETF
USD-denominated UCITS ETF range:
- Invesco BulletShares 2026 USD Corporate Bond UCITS ETF
- Invesco BulletShares 2027 USD Corporate Bond UCITS ETF
- Invesco BulletShares 2028 USD Corporate Bond UCITS ETF
- Invesco BulletShares 2029 USD Corporate Bond UCITS ETF
- Invesco BulletShares 2030 USD Corporate Bond UCITS ETF
Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco, said: “Fixed-maturity ETFs can help investors satisfy a variety of objectives, from matching cash flow with their future liabilities to filling a gap in the maturity profile of their existing bond portfolio. Sophisticated strategies once used only by institutions large enough to invest directly in individual bonds can now be replicated by other investors through simple BulletShares ETFs. These precision tools could help pension funds match their liabilities but equally provide a simple, low-cost solution for parents needing to plan for school fees or someone saving for a house purchase.”
Each Invesco ETF will aim to deliver the performance of its reference Bloomberg index, which is designed to reflect the performance of EUR-denominated, investment-grade, fixed-rate, taxable debt securities from corporate issuers. Securities must have at least EUR300 million par amount outstanding and an effective maturity within the final year of the ETF’s fixed maturity date.
For example, the Invesco BulletShares 2026 EUR Corporate Bond UCITS ETF aims to track the performance of the Bloomberg 2026 Maturity EUR Corporate Bond Screened Index, where each constituent has an effective maturity on or between 1 January 2026 and 31 December 2026.
Securities will also be excluded from the index if the issuer is involved with certain controversial business activities or has a severe controversary pertaining to an ESG-related issue.
Invesco’s portfolio managers will apply a sampling strategy to select a proportion of the index that represents the characteristics of the entire index. When a corporate bond held by the fund reaches maturity, the proceeds will be used to invest in short-dated government-issued debt.
Paul Syms, Head of EMEA Fixed Income and Commodity ETF Product Management at Invesco, said: “Investors can use our BulletShares ETFs for longer-term financial planning through what’s known as bond laddering. This strategy typically involves investing in a range of fixed-maturity ETFs – say, for example, in each of our current range from 2026 to 2030 – and, as each ETF reaches maturity, the investor rolls the proceeds into the next one launched, in this case one with a 2031 maturity date. This would provide a more predictable income to either be taken by the investor on a quarterly basis or be automatically accumulated within the fund.”
ETF details*
| Invesco BulletShares 2027 EUR Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2027 Maturity EUR Corporate Bond Screened Index |
| ETF BBG ticker | BE27 |
| Maturity date | 2nd Wednesday in December 2027 |
| Base / trading currency | EUR / EUR |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2028 EUR Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2028 Maturity EUR Corporate Bond Screened Index |
| ETF BBG ticker | BE28 |
| Maturity date | 2nd Wednesday in December 2028 |
| Base / trading currency | EUR / EUR |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2029 EUR Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2029 Maturity EUR Corporate Bond Screened Index |
| ETF BBG ticker | BE29 |
| Maturity date | 2nd Wednesday in December 2029 |
| Base / trading currency | EUR / EUR |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2030 EUR Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2030 Maturity EUR Corporate Bond Screened Index |
| ETF BBG ticker | BD30 |
| Maturity date | 2nd Wednesday in December 2030 |
| Base / trading currency | EUR / EUR |
| Annual charge | 0.10% p.a. |
*BBG tickers shown in the table are for the Dist shares listed on Xetra
