BSCP | Invesco Bulletshares 2025 Corporate Bond ETF

BSCP ISSUER

The Invesco, as the issuer of the BSCP (Broadly Sourced Corporate Portfolio) aims to invest primarily in securities constituting the Underlying Index, maintaining at least 80% of its total assets in these securities. Administered by Invesco Indexing LLC, an affiliate of the Fund's investment adviser and distributor, the Underlying Index is designed to track the performance of U.S. dollar-denominated investment grade corporate bonds maturing in or around the year 2025, including those with embedded issuer call options. To be included, bonds must meet strict criteria such as credit rating thresholds and minimum outstanding face value requirements. The Index Provider selects components from a pool of bonds issued by companies in the U.S., Canada, Western Europe, or Japan, ensuring diversification and adherence to predetermined weighting limits. As the fund nears its termination date around December 15, 2025, it transitions its portfolio to cash equivalents. Notably, the Fund does not follow a predetermined cash distribution strategy but instead employs a sampling methodology to achieve its investment objective, ensuring flexibility and adaptability over time. Additionally, while the Fund may concentrate its investments in certain industries, such concentrations are reflective of the composition of the Underlying Index.

BSCP DIVIDEND

The BSCP (Broadly Sourced Corporate Portfolio) dividend is an income distribution paid out to investors holding shares in the Invesco, reflecting the Fund's investment activities and the dividends received from the underlying corporate bonds. As the Fund primarily invests in U.S. dollar-denominated investment grade corporate bonds with maturities in or around the year 2025, the dividends paid out to investors are derived from the interest payments made by the issuers of these bonds. The amount of dividend paid to shareholders is influenced by factors such as the coupon rates of the underlying bonds, changes in interest rates, and the performance of the corporate bond market. Investors in the BSCP can expect to receive periodic dividend payments, providing them with a source of income from their investment in the Fund.

BSCP TRACKING

The BSCP (Broadly Sourced Corporate Portfolio) tracking refers to the ability of the Invesco to closely follow the performance of its underlying index, the Invesco Indexing LLC's curated selection of U.S. dollar-denominated investment grade corporate bonds maturing in or around the year 2025. Through meticulous portfolio management and adherence to the index's guidelines, the Fund aims to replicate the returns of its benchmark as accurately as possible. This involves regularly adjusting its holdings to mirror changes in the composition and weighting of the index constituents, ensuring that investors experience minimal tracking error. The tracking performance of the BSCP is crucial for investors seeking to achieve returns consistent with the broader corporate bond market while benefiting from the convenience and diversification offered by an exchange-traded fund (ETF) structure.

BSCP CORRELATION

The BSCP (Broadly Sourced Corporate Portfolio) correlation refers to the degree of statistical association between the returns of the Invesco and its underlying index, comprising U.S. dollar-denominated investment grade corporate bonds maturing around the year 2025. A high correlation indicates that the Fund closely mirrors the performance of its benchmark, making it an effective tool for investors seeking exposure to the corporate bond market. Conversely, a low correlation suggests that the Fund's returns diverge significantly from those of its index, potentially due to factors such as portfolio management decisions, market conditions, or specific characteristics of the underlying securities. Monitoring the correlation between the BSCP and its benchmark is crucial for investors assessing the fund's ability to deliver returns consistent with their investment objectives and market expectations.

BSCP SECTOR

The BSCP (Broadly Sourced Corporate Portfolio) sector allocation refers to the distribution of investments within the Invesco across various industries or sectors represented by the underlying corporate bonds. As of the latest reporting period, the sector allocation of the BSCP reflects the composition of the broader corporate bond market, with investments spanning sectors such as financials, technology, healthcare, consumer goods, and others. Sector allocation decisions are influenced by factors such as market conditions, economic outlook, and the Fund's investment objectives. By diversifying its holdings across multiple sectors, the BSCP aims to mitigate sector-specific risks and capture opportunities for potential returns, providing investors with a well-rounded exposure to the corporate bond market while managing portfolio risk effectively. Monitoring changes in sector allocation allows investors to assess the Fund's positioning relative to sector trends and market dynamics, helping them make informed investment decisions.

BSCP EXPOSURE

The BSCP (Broadly Sourced Corporate Portfolio) exposure refers to the level of risk and potential return that investors are exposed to through their investment in the Invesco. This exposure is primarily determined by the composition of the Fund's underlying assets, which consist of U.S. dollar-denominated investment grade corporate bonds maturing around the year 2025. Investors in the BSCP are exposed to the credit risk of the issuers of these bonds, as well as interest rate risk, market risk, and other factors affecting the corporate bond market. Additionally, the Fund's sector allocation and geographic diversification contribute to its overall exposure profile, influencing its sensitivity to specific economic and market conditions. Monitoring exposure levels allows investors to assess the risk-return characteristics of the BSCP and align their investment strategy accordingly, whether seeking income, capital preservation, or growth opportunities within the corporate bond market.