BSJP | Invesco BulletShares 2025 High Yield Corporate Bond ETF

BSJP ISSUER

The INVESCO ETF, as the issuer of the BSJP fund, primarily focuses on investing in securities constituting the Underlying Index, with at least 80% of its assets allocated accordingly. Managed by Invesco Indexing LLC, an affiliate of both Invesco Capital Management LLC and Invesco Distributors, Inc., the Fund's aim is to track the performance of U.S. dollar-denominated high yield corporate bonds maturing in 2025, commonly referred to as junk bonds. This selection includes bonds with embedded issuer call options, adjusting their effective maturity based on the likelihood of early redemption. The Index Provider applies stringent criteria for inclusion, such as credit ratings and face value requirements, resulting in a diversified portfolio of 113 constituents as of October 31, 2023. With a termination date set around December 15, 2025, the Fund will distribute its net assets to shareholders upon termination, with the portfolio transitioning to cash and equivalents during its final operational year. Notably, the Fund employs a sampling methodology rather than purchasing all securities in the Underlying Index, while adhering to concentration policies to manage industry exposure effectively, as demonstrated by its notable position in the consumer discretionary sector as of August 31, 2023.

BSJP DIVIDEND

The BSJP dividend, offered by the INVESCO ETF, provides investors with a means of participating in potential income generated by the Fund's underlying assets. As the Fund predominantly invests in U.S. dollar-denominated high yield corporate bonds maturing in 2025, commonly known as junk bonds, dividends are derived from the interest payments made by these bonds. Investors can expect periodic distributions reflecting the interest income earned by the Fund's portfolio holdings. The dividends are typically distributed to shareholders on a regular basis, providing them with a source of income over the investment period. Investors seeking both income generation and exposure to high yield corporate bonds may find the BSJP dividend an attractive component of their investment strategy, offering the potential for consistent returns in line with the Fund's underlying assets.

BSJP TRACKING

The tracking of the BSJP ETF, managed by INVESCO, involves closely monitoring the performance of its underlying index, which consists primarily of U.S. dollar-denominated high yield corporate bonds maturing in 2025, commonly referred to as junk bonds. The Fund aims to replicate the performance of this index by investing at least 80% of its total assets in securities that comprise it. To achieve this objective, the Fund employs rigorous tracking methodologies, including periodic rebalancing and adjustments to ensure alignment with the index's composition and weighting. Additionally, the Fund may utilize sampling techniques to replicate the performance of the index while maintaining cost efficiency. By closely adhering to its benchmark index, the BSJP ETF endeavors to provide investors with investment returns that closely mirror the performance of the underlying high yield corporate bond market, offering a transparent and reliable tracking mechanism for investors seeking exposure to this asset class.

BSJP CORRELATION

The correlation of the BSJP ETF, managed by INVESCO, refers to the degree to which its performance aligns with movements in its benchmark index, comprised primarily of U.S. dollar-denominated high yield corporate bonds maturing in 2025, often known as junk bonds. Investors analyze correlation to gauge the extent to which the ETF's returns fluctuate in tandem with changes in the underlying index. A high correlation indicates that the ETF closely tracks the index's performance, offering investors a reliable means of exposure to the high yield corporate bond market. Conversely, a low correlation suggests that the ETF's returns may deviate significantly from those of the index, potentially offering diversification benefits. By understanding the correlation between the BSJP ETF and its benchmark index, investors can better assess its suitability within their investment portfolios and manage risk effectively.

BSJP SECTOR

The sector allocation of the BSJP ETF, managed by INVESCO, reflects its exposure to various industries within the high yield corporate bond market. As of the latest available data, the fund's sector allocation may vary over time, depending on market conditions and the composition of its underlying index. However, as of August 31, 2023, the BSJP ETF had notable exposure to the consumer discretionary sector, indicating a significant portion of its holdings were concentrated in companies within this industry. Sector allocation plays a crucial role in determining the ETF's risk and return characteristics, as different sectors may perform differently under various economic conditions. Investors should monitor the BSJP ETF's sector allocation to ensure it aligns with their investment objectives and risk tolerance, allowing them to effectively diversify their portfolios and manage sector-specific risks.

BSJP EXPOSURE

The exposure of the BSJP ETF, managed by INVESCO, provides investors with access to the U.S. dollar-denominated high yield corporate bond market, specifically targeting bonds maturing in 2025, commonly referred to as junk bonds. This exposure enables investors to participate in the potential returns and income generated by these bonds, which typically offer higher yields compared to investment-grade bonds but come with increased credit risk. By investing at least 80% of its total assets in securities that comprise its benchmark index, the Fund aims to replicate the performance of this market segment. The BSJP ETF's exposure to high yield corporate bonds allows investors to diversify their portfolios and potentially enhance overall returns, while carefully managing risk through the Fund's adherence to its investment objectives and tracking methodologies.