BSMQ Profile
The Invesco BulletShares 2026 Municipal Bond ETF is designed to provide investors with focused exposure to a portfolio of U.S. dollar-denominated, investment-grade municipal bonds, specifically those maturing in the year 2026. The fund commits to investing at least 80% of its total assets in securities that are included in its underlying index. This index aims to reflect the performance of municipal bonds with maturities or effective maturities aligned with the year 2026, collectively referred to as 2026 Bonds.
Municipal bonds held by the ETF are issued by state and local governments, offering tax-exempt income to investors. The bonds are selected based on their investment-grade status, ensuring a high level of credit quality and minimizing default risk. By focusing on bonds with a maturity date in 2026, the fund provides a predictable income stream and principal repayment date, catering to investors with a specific time horizon for their fixed-income investments.
As a non-diversified fund, the Invesco BulletShares 2026 Municipal Bond ETF maintains a concentrated portfolio of municipal bonds maturing in 2026. This concentrated approach aligns with the funds objective to match a precise investment timeline, offering stability and clarity for investors. However, this specialization may expose the fund to market risks associated with bonds maturing in 2026 and fluctuations in the municipal bond market.
Overall, the Invesco BulletShares 2026 Municipal Bond ETF provides a strategic investment option for those seeking tax-efficient income and a defined maturity date. By concentrating on high-quality, investment-grade municipal securities maturing in 2026, the fund aims to deliver a stable income and a predictable endpoint for bond investments. This approach is tailored to investors looking for a structured, tax-advantaged fixed-income solution aligned with a specific future maturity.
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