Invesco BulletShares 2028 High Yield Corporate Bond ETF (BSJS) seeks to track an index of high-yield corporate bonds that mature in 2028, providing investors with exposure to below-investment-grade corporate debt with a defined maturity date. This target-date bond ETF holds junk bonds from companies with credit ratings below BBB-, offering higher yields in exchange for increased credit risk.
How It Works
BSJS uses a passive, buy-and-hold approach that purchases high-yield corporate bonds maturing in 2028 and holds them until maturity or the fund's termination date. The fund does not actively trade bonds or attempt to time the market, instead maintaining a portfolio that naturally decreases in duration as bonds approach maturity. Holdings are weighted by market value and the fund will liquidate and distribute proceeds to shareholders around the 2028 maturity date, providing a defined investment timeline.
Key Features
- Target-date structure eliminates interest rate risk by 2028 as bonds mature at par value regardless of market fluctuations
- 5.54% dividend yield significantly exceeds investment-grade bonds and money market funds in current rate environment
- Self-liquidating design provides natural exit strategy, automatically returning principal plus final distributions to shareholders in 2028
Risks
- This ETF can lose value if underlying companies default on their bonds, with high-yield bonds experiencing 2-4% annual default rates historically
- Credit spread widening during economic stress could cause 10-20% temporary declines even though bonds eventually mature at par
- Early fund termination before 2028 could force sales at unfavorable prices if credit markets are distressed at liquidation time
Who Should Own This
Best suited for income-focused investors with 4-6 year time horizons seeking higher yields than investment-grade bonds. Medium-to-high risk tolerance required due to credit risk and potential volatility. Works as satellite holding (5-15% of fixed income allocation) for investors comfortable with junk bond exposure and wanting defined maturity date structure.