The Invesco BulletShares 2022 High Yield Corporate Bond ETF (BSJM) is managed by Invesco Indexing LLC, the Index Provider affiliated with Invesco Capital Management LLC, the Fund's investment adviser, and Invesco Distributors, Inc., the Fund's distributor. BSJM seeks to track the performance of a portfolio of U.S. dollar-denominated high yield corporate bonds with maturities or effective maturities in the year 2022, commonly referred to as junk bonds. To be included in the Underlying Index, bonds must meet specific criteria, including a maximum credit rating of BB+ from S&P Global Ratings or Fitch Ratings, or a maximum credit rating of Ba1 from Moody's Investors Service, and a minimum average credit rating of CCC-. As of August 31, 2021, the Underlying Index consisted of 153 constituents, and the Fund is scheduled to terminate on or about December 15, 2022, with cash distributions to shareholders at that time. BSJM does not follow a predetermined cash distribution plan but instead aims to provide exposure to the 2022 high yield corporate bond market.
While the primary focus of the Invesco BulletShares 2022 High Yield Corporate Bond ETF (BSJM) is on tracking the performance of U.S. dollar-denominated high yield corporate bonds maturing in 2022, it also offers a dividend distribution to its investors. The ETF generally invests in bonds that meet specific credit rating criteria and must have at least $200 million in face value outstanding to be eligible for inclusion in its underlying index. Bond selection is market value weighted, with a 5% limit on individual issuers, and the ETF typically holds bonds until maturity or until they no longer meet eligibility requirements. As the ETF approaches its termination date in December 2022, its portfolio will transition to cash and cash equivalents, providing investors with potential cash distributions. It's important to note that the ETF does not seek to distribute a predetermined amount of cash at maturity, and investors should consider this in their investment strategy.
Tracking the Bloomberg Barclays 2022 Maturity High Yield Index is central to the strategy of the Invesco BulletShares 2022 High Yield Corporate Bond ETF (BSJM). This ETF seeks to invest at least 80% of its assets in securities that make up the Underlying Index, which primarily consists of U.S. dollar-denominated high-yield corporate bonds set to mature in 2022. The Index Provider, Invesco Indexing LLC, is closely associated with the ETF's investment adviser and distributor, ensuring alignment in investment objectives. BSJM provides investors with a way to gain exposure to a diversified portfolio of high-yield bonds with targeted maturity, making it a suitable option for those seeking income potential with a defined end date.
The correlation aspect of the Invesco BulletShares 2022 High Yield Corporate Bond ETF (BSJM) is primarily related to the performance of its underlying index, which consists of U.S. dollar-denominated high yield corporate bonds with maturities or effective maturities in the year 2022. Given its focus on junk bonds with a specific maturity profile, BSJM's correlation tends to be influenced by factors affecting the high yield bond market. Typically, it exhibits a higher correlation with the broader fixed income market, particularly other high yield bond ETFs, as it seeks to track the performance of a specific maturity target. To gain a deeper understanding of BSJM's correlations with other assets or sectors, investors can utilize the ETF Insider web app, which provides comprehensive data and visualization tools to assess overlaps and relationships with other U.S. ETFs, facilitating more informed investment decisions.
The Invesco BulletShares 2022 High Yield Corporate Bond ETF (BSJM) is primarily involved in the high yield corporate bond sector. This ETF focuses on U.S. dollar-denominated high yield corporate bonds, often referred to as junk bonds, with maturities or effective maturities in the year 2022. The selection process for the underlying index begins with an investment universe of bonds issued by companies in the U.S., Canada, Western Europe, or Japan, with specific eligibility criteria related to credit ratings and outstanding face value. BSJM offers investors exposure to higher-yield debt instruments, potentially providing higher income potential but also carrying higher credit risk.
The exposure characteristic of the Invesco BulletShares 2022 Municipal Bond ETF (BSJM) revolves around U.S. dollar-denominated high-yield municipal bonds with maturities or effective maturities in the year 2022. These bonds are commonly known as junk bonds and are selected based on specific criteria, including their credit rating, fixed taxable interest, and minimum average credit rating. BSJM provides investors with access to a diversified portfolio of municipal bonds set to mature or be called in 2022, offering exposure to this segment of the fixed income market.
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