Two new BulletShares ETFs are now available to replace
maturing funds
ATLANTA, June 12,
2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a
leading global provider of exchange-traded funds (ETFs), today
announced the addition of two new BulletShares ETFs to its fixed
income lineup. The two new maturities complement Invesco's fixed
income suite by providing access to potential revenue-driving areas
of the fixed income market.
"With higher-for-longer interest rate expectations top of mind
for investors, the unique structure of Invesco's BulletShares suite
continues to attract those who want to hedge against interest rate
volatility," said Jason Bloom, Head
of Fixed Income and Alternative ETF Strategy at Invesco. "These new
maturities offer the potential to take advantage of elevated yields
while providing better visibility on potential return streams
versus other traditional fund vehicles."
BulletShares ETFs seek to combine the advantages of ETF
investing with the benefits of individual bonds by offering
increased liquidity,1 relatively low
costs2 and broad diversification. This offers the
potential ability for monthly income and cash distribution at
termination,3 acting like an individual bond.
The new BulletShares ETFs offer investors access to several of
the fixed income sectors not captured in broad fixed income
benchmarks,4 such as high yield corporate bonds, in a
structure with a predetermined termination date that aligns with
the maturity year or expected call date of the bonds
held5 in its transparent6 ETF portfolio. The
two new ETFs are:
- Invesco BulletShares 2034 Corporate Bond ETF (BSCY)
- Invesco BulletShares 2032 High Yield Corporate Bond ETF
(BSJW)
Invesco also offers the BulletShares ETF Bond Ladder Tool to
provide a convenient way to build a hypothetical laddering strategy
with BulletShares ETFs, based on maturity and credit criteria, that
can help investors better manage their income stream and risk
exposure. Visit BulletShares fixed Income ETFs for additional
details about the full suite.
For more information about Invesco's fixed income ETFs, please
visit: Invesco Fixed Income ETFs.
- 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 Share
- Since ordinary brokerage commissions apply for each buy and
sell transaction, frequent trading activity may increase the cost
of ETFs.
- 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).
- Bloomberg Aggregate Bond Index only tracks the broad
performance of the U.S. investment-grade bond market. An investment
cannot be made directly into an index.
- The funds will terminate on or about December 15 of the calendar year included in each
fund's name.
- ETFs disclose their full portfolio holdings daily.
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE:
IVZ) 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 US $1.66 trillion in assets
on behalf of clients worldwide as of March
31, 2024. For more information, visit
www.invesco.com/corporate.
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).
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.
BSCY
Investments focused in a particular industry or
sector are subject to greater risk, and are more greatly impacted
by market volatility than a more diversified investment.
The Fund is 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 Fund's operations, as the bonds
mature and the portfolio transitions to cash and cash equivalents,
the Fund's 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 Fund 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.
The risks of investing in securities of foreign issuers can
include fluctuations in foreign currencies, political and economic
instability, and foreign taxation issues.
Income generated from the Fund is based primarily on prevailing
interest rates, which can vary widely over the short- and
long-term. If interest rates drop, the Fund's 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 Fund's income.
An issuer's ability to prepay principal prior to maturity can
limit the Fund's potential gains. Prepayments may require the Fund
to replace the loan or debt security with a lower yielding
security, adversely affecting the Fund's yield.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
Unlike a direct investment in bonds, the Fund's income
distributions will vary over time and the breakdown of returns
between Fund distributions and liquidation proceeds are not
predictable at the time of investment. For example, at times the
Fund may make distributions at a greater (or lesser) rate than the
coupon payments received, which will result in the Fund returning a
lesser (or greater) amount on liquidation than would otherwise be
the case. The rate of Fund distribution payments may affect the tax
characterization of returns, and the amount received as liquidation
proceeds upon Fund termination may result in a gain or loss for tax
purposes.
During periods of reduced market liquidity or in the absence of
readily available market quotations for the holdings of the Fund,
the ability of the Fund to value its holdings becomes more
difficult and the judgment of the Sub-Adviser may play a greater
role in the valuation of the Fund's holdings due to reduced
availability of reliable objective pricing data.
The Fund's use of a representative sampling approach will result
in its holding a smaller number of securities than are in the
underlying Index, and may be subject to greater volatility.
BSJW
Investments focused in a particular industry or
sector are subject to greater risk, and are more greatly impacted
by market volatility, than more diversified investments.
The Fund 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.
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 Fund's operations, as the bonds
mature and the portfolio transitions to cash and cash equivalents,
the Fund's 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 Fund 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.
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 can
include fluctuations in foreign currencies, political and economic
instability, and foreign taxation issues.
Income generated from the Fund is based primarily on prevailing
interest rates, which can vary widely over the short- and
long-term. If interest rates drop, the Fund's 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 Fund's income.
An issuer's ability to prepay principal prior to maturity can
limit the Fund's potential gains. Prepayments may require the Fund
to replace the loan or debt security with a lower yielding
security, adversely affecting the Fund's yield.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
Restricted securities generally cannot be sold to the public and
may involve a high degree of business, financial and liquidity
risk, which may result in substantial losses to the Fund.
Unlike a direct investment in bonds, the Fund's income
distributions will vary over time and the breakdown of returns
between Fund distributions and liquidation proceeds are not
predictable at the time of investment. For example, at times the
Fund may make distributions at a greater (or lesser) rate than the
coupon payments received, which will result in the Fund returning a
lesser (or greater) amount on liquidation than would otherwise be
the case. The rate of Fund distribution payments may affect the tax
characterization of returns, and the amount received as liquidation
proceeds upon Fund termination may result in a gain or loss for tax
purposes.
During periods of reduced market liquidity or in the absence of
readily available market quotations for the holdings of the Fund,
the ability of the Fund to value its holdings becomes more
difficult and the judgment of the Sub-Adviser may play a greater
role in the valuation of the Fund's holdings due to reduced
availability of reliable objective pricing data.
The Fund's use of a representative sampling approach will result
in its holding a smaller number of securities than are in the
underlying Index, and may be subject to greater volatility.
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.
Invesco Distributors, Inc. is the US distributor for Invesco's
retail products and private placements. Each entity is an indirect,
wholly owned subsidiary of Invesco Ltd.
06/24 NA3628425
Media Relations Contact: Rachael
Peng, 713.21.4193, rachael.peng@invesco.com
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SOURCE Invesco Ltd.