Invesco is launching a range of fixed maturity ETFs for investors wanting to take advantage of today’s high yields and who may be looking to tailor their portfolio’s maturity profile or their income stream. The firm’s initial offering provides exposure to USD-denominated investment-grade corporate bonds, with maturity dates ranging from 2026 to 2030. Accumulating and Distributing shares are available for each ETF.
- 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: “Institutional investors often employ a strategy where they build a portfolio of bonds that produces an income stream that closely matches their liabilities. Our new BulletShares range offers all investors the tools to create a similar strategy but with the added benefits of greater diversification and the transparency and trading efficiency of an ETF structure. These ETFs 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 USD-denominated, investment-grade, fixed-rate, taxable debt securities from corporate issuers. Securities must have at least USD300 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 USD Corporate Bond UCITS ETF aims to track the performance of the Bloomberg 2026 Maturity USD 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 US Treasury 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 USD Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2027 Maturity USD Corporate Bond Screened Index |
| ETF BBG ticker | BS7A |
| Maturity date | 2nd Wednesday in December 2027 |
| Base / trading currency | USD / USD |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2028 USD Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2028 Maturity USD Corporate Bond Screened Index |
| ETF BBG ticker | BS8A |
| Maturity date | 2nd Wednesday in December 2028 |
| Base / trading currency | USD / USD |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2029 USD Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2029 Maturity USD Corporate Bond Screened Index |
| ETF BBG ticker | BS9A |
| Maturity date | 2nd Wednesday in December 2029 |
| Base / trading currency | USD / USD |
| Annual charge | 0.10% p.a. |
| Invesco BulletShares 2030 USD Corporate Bond UCITS ETF | |
| Index name | Bloomberg 2030 Maturity USD Corporate Bond Screened Index |
| ETF BBG ticker | BS0A |
| Maturity date | 2nd Wednesday in December 2030 |
| Base / trading currency | USD / USD |
| Annual charge | 0.10% p.a. |
*BBG tickers shown in the table are for the Acc shares listed on the LSE
