The BSMV ETF is managed by Invesco Indexing LLC, the same organization responsible for compiling and maintaining the Underlying Index that this ETF seeks to replicate. Invesco Indexing LLC operates in close affiliation with Invesco Capital Management LLC, which serves as the fund's investment adviser, and Invesco Distributors, Inc., the distributor of the ETF. The underlying index for this ETF aims to gauge the performance of a portfolio of U.S. dollar-denominated investment-grade municipal bonds with maturities or effective maturities in the year 2031.
The BSMV Dividend ETF aims to replicate the performance of the Indxx Hedged Dividend Income Index, a long/short index where the long positions carry approximately twice the weight of the short positions. This ETF's dividend distributions are dependent on the difference in total returns between its long and short positions. If the long positions outperform the short positions, the fund generates a positive return, and vice versa. The fund typically invests at least 80% of its net assets in long positions of the Target Hedged Dividend Index while shorting at least 80% of the short positions. It prioritizes high dividend income with a secondary objective of capital appreciation while seeking to limit drawdown during market declines. The Index's universe includes the largest 1000 U.S. listed issuers, focusing on those consistently paying high dividends. While the ETF aims to replicate the Index's weightings, it may employ a sampling strategy and invest in additional instruments to track the Index's performance effectively. The Target Hedged Dividend Index rebalances quarterly, with sector weightings capped at 25% for long components and half that for short components. This ETF may concentrate its investments in specific industries to a similar extent as the Index.
Tracking the Performance of U.S. Dollar-Denominated 2031 Municipal Bonds The BSMV ETF primarily aims to mirror the performance of a portfolio of U.S. dollar-denominated investment-grade municipal bonds with maturities, or effective maturities, in the year 2031, collectively referred to as 2031 Bonds. These bonds are exempt from federal income tax and must have fixed interest payments, along with minimum credit ratings of BBB- by S&P Global Ratings, Baa3 by Moody's Investors Service, or equivalent ratings by Fitch Ratings. The ETF employs a market value-weighted approach to select and maintain its constituents, with a 5% limit on individual issuers at each monthly rebalance. In the final year of operation (2031), the fund may invest in a combination of variable rate demand obligations (VRDOs), derivatives, exchange-traded funds (ETFs), and municipal bonds not included in the underlying index, to track the index's performance effectively. Please note that this ETF does not follow a predetermined cash distribution strategy at maturity, making it distinct from target date funds. Additionally, it employs a sampling methodology and is classified as non-diversified under the Investment Company Act of 1940. To be included in the index, bonds must meet specific criteria, such as being tax-exempt, paying fixed interest, and having at least a BBB- rating from S&P Global Ratings, Baa3 from Moody's Investors Service, Inc., or equivalent ratings from Fitch Ratings Inc. The BSMV ETF follows a market value-weighted approach with a 5% limit on individual issuers, and it generally holds bonds until they mature, are called, or no longer meet the index's eligibility requirements. The fund is scheduled to terminate on or about December 15, 2031, with the possibility of the Board of Trustees altering the termination date. In its final months of operation, the fund may invest the proceeds from maturing or called bonds in various instruments, including variable rate demand obligations (VRDOs), derivatives, ETFs, cash, and municipal bonds not included in the underlying index, all with the goal of tracking the index's performance. To be included in the index, bonds must meet specific criteria, such as being tax-exempt, paying fixed interest, and having at least a BBB- rating from S&P Global Ratings, Baa3 from Moody's Investors Service, Inc., or equivalent ratings from Fitch Ratings Inc. The BSMV ETF follows a market value-weighted approach with a 5% limit on individual issuers, and it generally holds bonds until they mature, are called, or no longer meet the index's eligibility requirements. The fund is scheduled to terminate on or about December 15, 2031, with the possibility of the Board of Trustees altering the termination date. In its final months of operation, the fund may invest the proceeds from maturing or called bonds in various instruments, including variable rate demand obligations (VRDOs), derivatives, ETFs, cash, and municipal bonds not included in the underlying index, all with the goal of tracking the index's performance.
The correlation aspect of the BSMV ETF, or the specific correlations it has with other assets or market sectors, is not readily available in the provided information. However, understanding correlations is crucial for making informed investment decisions. To explore BSMV's correlations and gain deeper insights into its behavior, investors can use the ETF Insider web app. This tool offers simple visualization and detailed data for various US ETFs, helping investors identify overlaps and assess potential portfolio diversification opportunities.
The BSMV Sector ETF primarily focuses on U.S. dollar-denominated investment-grade municipal bonds with maturities or effective maturities in the year 2031, known as 2031 Bonds. These bonds are exempt from federal income tax and pay fixed amounts of interest. To be eligible for inclusion in the ETF, these bonds must have credit ratings of at least BBB- by S&P Global Ratings, Baa3 by Moody's Investors Service, Inc., or equivalent ratings by Fitch Ratings Inc. The ETF follows a market value-weighted approach with a 5% limit on individual issuers, and it utilizes a sampling methodology to achieve its investment objective. The ETF is non-diversified and may concentrate its investments in specific industries to the extent reflected in the underlying index.
The exposure characteristic of the BSMV ETF (assuming it exists) could not be determined based on the provided information. For accurate and comprehensive information about the BSMV ETF's exposure, investors can use the ETF Insider web app. This tool offers deep and insightful data for various U.S. ETFs, including market focus, regional allocations, sector weightings, overlap analysis, and correlation metrics. Gain a better understanding of the BSMV ETF's exposure through this powerful visualization tool to make informed investment decisions.
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