BSMT | Invesco BulletShares 2029 Municipal Bond ETF

BSMT ISSUER

The BSMT ETF, managed by Invesco Indexing LLC, invests primarily in securities comprising the Underlying Index, which measures the performance of U.S. dollar-denominated investment-grade municipal bonds maturing in or around 2029. These bonds may include embedded issuer call options, impacting their effective maturity. The Index Provider, affiliated with the Fund's investment adviser and distributor, selects eligible bonds based on criteria such as tax exemption, fixed interest payments, and credit ratings. As of October 31, 2023, the Underlying Index consisted of 1,766 constituents, subject to a 5% individual issuer limit. Upon termination in December 2029, the Fund will distribute its net assets to shareholders. During its maturing year, proceeds from maturing or called bonds are reinvested in various instruments including VRDOs, derivatives, ETFs, money market funds, and municipal bonds. Not to be mistaken for a target date fund, the Fund employs a sampling methodology to achieve its investment objective and adheres to a concentration policy, avoiding excessive investment in any single industry.

BSMT DIVIDEND

As an ETF primarily investing in municipal bonds, BSMT (Invesco ETF) may distribute dividends to its shareholders based on the interest income earned from its underlying bond portfolio. The dividends paid out by BSMT would typically represent the interest payments received from the municipal bonds held within its portfolio, net of any expenses incurred by the fund. These dividends are usually distributed periodically, such as monthly or quarterly, and can provide investors with a source of income. The amount and frequency of dividend payments may vary depending on factors such as changes in interest rates, bond maturities, and the overall performance of the underlying municipal bond market. Investors should consult the fund's prospectus or financial statements for specific information on dividend distributions.

BSMT TRACKING

As an exchange-traded fund (ETF), BSMT (Invesco ETF) aims to track the performance of its underlying index, which consists of U.S. dollar-denominated investment-grade municipal bonds maturing or having an effective maturity in the year 2029. BSMT employs a tracking methodology to closely follow the returns of its benchmark index, typically through investments in a diversified portfolio of municipal bonds that mirror the composition and characteristics of the index. The fund may utilize various strategies, such as sampling, to replicate the performance of the index while managing costs and liquidity. However, like all ETFs, BSMT may experience tracking error, which is the divergence between its performance and that of the underlying index, due to factors such as transaction costs, fund expenses, and market fluctuations. Investors should monitor the fund's tracking performance relative to its benchmark index to assess its effectiveness in meeting its investment objectives.

BSMT CORRELATION

The correlation of BSMT (Invesco ETF) refers to the degree of statistical relationship between the returns of the ETF and those of its underlying index or benchmark. Given that BSMT primarily invests in U.S. dollar-denominated investment-grade municipal bonds with maturities in or around the year 2029, its correlation with its benchmark index would typically be high, aiming to closely track its performance. However, other factors such as expenses, trading practices, and market conditions can influence the correlation between BSMT and its benchmark. Additionally, BSMT may exhibit correlations with other asset classes or financial instruments, depending on market conditions and the broader economic environment. Investors interested in understanding the correlation of BSMT should analyze historical performance data and consult with financial professionals for insights into how the ETF may behave relative to its benchmark and other investment options.

BSMT SECTOR

As an exchange-traded fund (ETF) focusing on U.S. dollar-denominated investment-grade municipal bonds with maturities in or around the year 2029, BSMT (Invesco ETF) does not invest in traditional sectors like those found in equity-based funds. Instead, BSMT primarily allocates its assets to various municipal bonds issued by U.S. states, state agencies, territories, local governments, and other municipal entities. These bonds typically finance projects such as infrastructure development, education, healthcare, and public services. Therefore, while BSMT doesn't align with sector classifications in the same way as equity-based ETFs, its holdings are diversified across various geographic regions and municipal projects, offering exposure to the broader municipal bond market.

BSMT EXPOSURE

BSMT provides exposure to the U.S. municipal bond market, specifically focusing on investment-grade municipal bonds with maturities or effective maturities around the year 2029. By investing in BSMT, investors gain access to a diversified portfolio of U.S. dollar-denominated municipal bonds issued by entities such as U.S. states, state agencies, territories, local governments, and other municipal entities. These bonds typically finance essential public projects and infrastructure initiatives. BSMT aims to provide investors with exposure to the municipal bond market while seeking to generate income through interest payments. Additionally, BSMT's investment approach may involve sampling methodologies to replicate the performance of its underlying index while managing costs and liquidity. Investors considering BSMT should evaluate its investment objectives, risks, and potential returns in the context of their overall investment strategy and portfolio allocation.