BSCQ | Invesco BulletShares 2026 Corporate Bond ETF

BSCQ ISSUER

The BSCQ issuer, Invesco ETF, focuses on maintaining a portfolio primarily composed of securities aligned with the Underlying Index, investing at least 80% of its assets accordingly. Spearheaded by Invesco Indexing LLC, an entity affiliated with both Invesco Capital Management LLC and Invesco Distributors, Inc., the Index Provider diligently curates and sustains the Underlying Index. This index primarily gauges the performance of U.S. dollar-denominated investment grade corporate bonds maturing or having effective maturities in 2026, with specific attention to bonds featuring embedded issuer call options. Eligible bonds for inclusion must meet stringent criteria including maturity, credit ratings, and face value. The index is meticulously constructed, with a market value weighting approach and limits on individual issuers to maintain diversification. As the Fund nears its termination date in December 2026, it gradually transitions its holdings to cash equivalents, adhering to a distinctive investment strategy not akin to target date funds. Utilizing a sampling methodology, the Fund seeks to realize its investment objectives effectively while adhering to concentration policies, maintaining a prudent approach to sector exposure.

BSCQ DIVIDEND

The BSCQ dividend policy reflects the underlying investment strategy of the Invesco ETF, emphasizing income generation from its portfolio of U.S. dollar-denominated investment grade corporate bonds. As an exchange-traded fund (ETF), BSCQ aims to provide shareholders with regular income distributions derived from the interest payments on its bond holdings. These dividends are typically paid out periodically, providing investors with a steady stream of income. The fund's dividend payouts are influenced by various factors, including prevailing interest rates, bond yields, and the performance of the underlying securities. Investors can expect BSCQ to deliver dividends in line with its investment objective of seeking income from high-quality corporate bonds while maintaining a disciplined approach to risk management.

BSCQ TRACKING

BSCQ, as an Invesco ETF, places a significant emphasis on tracking the performance of its underlying index, the Invesco BulletShares 2026 Corporate Bond Index. With a commitment to closely mirroring the index's movements, BSCQ employs rigorous tracking methodologies to ensure that the fund's performance aligns closely with that of its benchmark. Invesco utilizes sophisticated portfolio management techniques and rebalancing strategies to minimize tracking error, aiming to keep deviations between the fund's returns and those of the index as low as possible. Through diligent monitoring and adjustments, BSCQ seeks to provide investors with an investment vehicle that effectively captures the performance of the selected corporate bond market segment while offering the liquidity and convenience of an exchange-traded fund.

BSCQ CORRELATION

BSCQ's correlation strategy revolves around maintaining a close relationship between its performance and that of its underlying index, the Invesco BulletShares 2026 Corporate Bond Index. By design, the fund seeks to exhibit a high correlation with the index, ensuring that fluctuations in the index are reflected in BSCQ's returns. This correlation is achieved through a combination of meticulous portfolio construction, asset allocation, and risk management techniques. Invesco continuously monitors the composition of the index and adjusts the fund's holdings accordingly to minimize deviations from the index's performance. As a result, investors can expect BSCQ to closely track the movements of its benchmark, providing a reliable investment option for those seeking exposure to the specific segment of the corporate bond market targeted by the index.

BSCQ SECTOR

BSCQ, an Invesco ETF, implements a sector strategy focused on maintaining diversified exposure to various industries while aligning with the composition of its underlying index, the Invesco BulletShares 2026 Corporate Bond Index. As of recent data, the fund has significant exposure to the financials sector, reflecting the sector's representation within the index. While BSCQ does not concentrate its investments in any single industry unless reflected by the index, its sector allocations may evolve over time as market conditions and index composition change. Invesco employs prudent sector allocation strategies to manage risk and capitalize on opportunities within different industries, aiming to provide investors with a balanced portfolio that captures the performance of U.S. dollar-denominated investment grade corporate bonds across diverse sectors as outlined by the index.

BSCQ EXPOSURE

BSCQ, an Invesco ETF, offers exposure to the U.S. dollar-denominated investment grade corporate bond market through its underlying index, the Invesco BulletShares 2026 Corporate Bond Index. The fund's exposure is primarily concentrated on bonds with maturities or effective maturities in the year 2026, reflecting the index's focus. By investing at least 80% of its assets in securities comprising the index, BSCQ provides investors with a convenient and efficient way to gain exposure to a diversified portfolio of investment-grade corporate bonds. Additionally, the fund's exposure may include bonds with embedded issuer call options, as permitted by the index methodology, which can impact the effective maturity of the bonds held in the portfolio. With a disciplined approach to tracking the index and managing risk, BSCQ aims to deliver returns that closely reflect the performance of the U.S. dollar-denominated investment grade corporate bond market within the specified maturity range.