BSCR | Invesco BulletShares 2027 Corporate Bond ETF

BSCR ISSUER

The Invesco, as an issuer of the BSCR, primarily invests in securities constituting the Underlying Index, with a mandate to allocate at least 80% of its total assets accordingly. Managed by Invesco Capital Management LLC, the Fund adheres strictly to guidelines set forth by Invesco Indexing LLC, the Index Provider affiliated with the Fund's investment adviser and distributor. The Underlying Index aims to gauge the performance of a portfolio of U.S. dollar-denominated investment-grade corporate bonds maturing or having effective maturities in 2027. These bonds, subject to specific eligibility criteria such as credit ratings and minimum face value outstanding, are weighted by market value, with a cap on individual issuers to ensure diversification. As of October 31, 2023, the Underlying Index comprised 411 constituents. Notably, the Fund is structured to terminate around December 15, 2027, with provisions for cash distribution of its net assets to shareholders. During its maturing year, the Fund transitions its portfolio into cash and cash equivalents, emphasizing U.S. Treasury Bills and investment-grade commercial paper. Utilizing a sampling methodology, the Fund aims to achieve its investment objective while adhering to concentration policies, avoiding excessive exposure to any single industry. As of August 31, 2023, the Fund showed significant exposure to the financial sector, although its portfolio holdings and concentration may evolve over time.

BSCR DIVIDEND

The BSCR (Broadly Syndicated Collateralized Reinvestment) dividend represents the income generated from the underlying assets held within the BSCR structure. These dividends typically stem from interest payments on the collateralized loans or securities within the BSCR portfolio. Investors in BSCR receive dividends regularly, often on a monthly or quarterly basis, depending on the terms of the investment. The amount of the dividend is influenced by factors such as the performance of the underlying assets, prevailing interest rates, and any fees or expenses associated with managing the BSCR. As such, BSCR dividends can provide investors with a steady stream of income, making them an attractive option for those seeking income-generating investments.

BSCR TRACKING

BSCR tracking refers to the process of monitoring and assessing the performance of a Broadly Syndicated Collateralized Reinvestment structure relative to its designated benchmark or index. Investors and fund managers utilize tracking to evaluate how effectively the BSCR is replicating the performance of its underlying assets. This involves comparing the returns of the BSCR to those of its benchmark over time, taking into account factors such as fees, expenses, and tracking error. Tracking aims to ensure that the BSCR accurately reflects the investment strategy and objectives outlined by its creators. A high level of tracking accuracy indicates that the BSCR is effectively mirroring the performance of its underlying assets, providing investors with confidence in its ability to deliver returns consistent with the chosen benchmark. Conversely, significant deviations from the benchmark may prompt further analysis to identify potential causes and address any discrepancies in tracking performance.

BSCR CORRELATION

BSCR correlation refers to the degree of statistical association between the returns of a Broadly Syndicated Collateralized Reinvestment (BSCR) structure and those of its benchmark or other reference indices. Investors and analysts use correlation analysis to assess how closely the performance of the BSCR tracks that of its chosen benchmark over a given period. A high correlation indicates that the returns of the BSCR closely mirror those of its benchmark, suggesting that the BSCR effectively replicates the performance of the underlying assets. Conversely, a low correlation implies that the BSCR's returns diverge significantly from those of its benchmark, potentially indicating that the BSCR is influenced by factors beyond the scope of its designated benchmark or that its investment strategy is not closely aligned with the benchmark. Understanding the correlation between a BSCR and its benchmark is essential for investors seeking to gauge the effectiveness of the BSCR in achieving its investment objectives and managing portfolio risk.

BSCR SECTOR

BSCR sector refers to the specific industry or segment of the economy in which a Broadly Syndicated Collateralized Reinvestment (BSCR) structure allocates its investments. These sectors can vary widely and may include technology, healthcare, finance, consumer goods, and energy, among others. The allocation of investments across different sectors within a BSCR is often guided by the investment strategy and objectives outlined by its creators. Diversification across sectors is typically employed to mitigate risk and enhance the overall stability of the BSCR portfolio. Investors and fund managers closely monitor sector allocations within a BSCR to assess its exposure to various segments of the economy and to ensure alignment with their investment goals and risk tolerance. Additionally, sector analysis allows investors to evaluate the potential impact of economic and market trends on the performance of the BSCR and its underlying assets.

BSCR EXPOSURE

BSCR exposure refers to the level of investment or risk exposure that a Broadly Syndicated Collateralized Reinvestment (BSCR) structure has to certain assets, sectors, or market factors. This exposure encompasses both the degree of allocation to specific assets or sectors within the BSCR portfolio and the sensitivity of the BSCR's performance to changes in market conditions or economic variables. Investors and fund managers assess BSCR exposure to understand the potential impact of market fluctuations on portfolio returns and to manage risk effectively. Exposure analysis may involve evaluating factors such as geographic regions, industry sectors, credit quality, interest rate sensitivity, and currency risk. By monitoring and adjusting exposure levels within the BSCR, investors aim to optimize portfolio performance, achieve diversification, and align the investment strategy with their risk tolerance and financial objectives.