BulletShares

The Precision of Individual Bonds. The Advantages of ETFs.

BulletShares® ETFs are an innovative suite of fixed-term exchange-traded funds (ETFs) that provide defined-maturity exposure. BulletShares ETFs encompass both investment-grade and high yield corporate bonds, enabling investors to build customized portfolios tailored to specific maturity profiles, risk preferences and investment goals.

Each BulletShares ETF comprises a diversified1 portfolio of individual bonds that mature or are anticipated to be called in a specific year. Once its maturity date has been reached, the BulletShares ETF will return its net assets to shareholders.2

ladder graphic ladder graphic
Build bond ladders

Benefits of BulletShares® ETFs

BulletShares® ETFs are designed to combine the benefits of individual bonds with the advantages of ETFs. These innovative products provide:

Bond-like Experience in an ETF

Combine the benefits of bonds—monthly income potential, final distribution at maturity2, as well as control of portfolio maturity, yield, and credit quality—with the advantages of ETFs—broad diversification1, liquidity, transparency, convenience, and cost-effectiveness.

Precise Exposure

Provide targeted investment grade and high yield exposure, enabling investors to build customized portfolios tailored to specific maturity profiles, risk preferences and investment goals.

Ease of Use

Provide a cost-effective and convenient way to build bond ladders and help manage interest rate risk, via fixed-income ETFs with consecutively maturing years ranging from 2018 to 2027.

BulletShares® ETFs vs. Bonds and Bond Funds

  BulletShares ETFs Traditional Fixed-Income ETFs Traditional Fixed-Income Mutual Funds Individual Bonds
Final Distribution at Maturity
X
X
Exchange-Traded Liquidity & Transparency
X
X
Precise Maturity Profile
X
X
Access/Ease of Use
X
X
X
Professional Portfolio Management
X
X
X

For illustrative purposes use only. The characteristics described above represent general attributes of typical investments of the types indicated. Specific investments may have different characteristics. Please consult a prospectus.

Explore BulletShares® Portfolio Applications

BulletShares® ETFs allow you to customize your corporate bond portfolios to specific risk preferences, maturity profiles and investment goals. They can be used in a variety of portfolio applications.

Fill Gaps in existing portfolios
Fill gaps in existing portfolios
Use BulletShares® ETFs to fill gaps left in existing portfolios or to enhance a portfolio's overall diversification1.
Obtain targeted yield-curve exposure
Obtain targeted yield-curve exposure
BulletShares ETFs® offer access to different segments of the bond market by targeting particular points on the yield curve.
Create Laddered Portfolios
Create laddered portfolios
BulletShares® ETFs offer a convenient and cost-effective approach to bond laddering by allowing investors to construct fixed income portfolios with specific maturity profiles3.
barbell approach
Barbell approach
Anticipating rising rates? Employ a barbell strategy by simultaneously overweighting BulletShares® ETFs with short-term and long-term maturity dates. The longer-term ETFs may lock into higher interest rates, while the shorter-maturity ETFs can potentially be reinvested in higher-yielding assets as rates rise.
Liability driven investing
Liability driven investing
Because of their defined maturity dates, BulletShares® ETFs can be used to fund common life-stage expenses, such as buying a house, paying for college or funding retirement.

BulletShares® ETFs

BulletShares® ETFs are unlike traditional ETFs in that they have a defined maturity date similar to bonds. This allows ETF proceeds to be returned to shareholders at maturity.

The BulletShares® Maturity Process

BulletShares ETFs comprise individual bonds that mature or are expected to be called in a specific year. While a traditional fixed income ETF or mutual fund regularly buys and sells underlying bonds to maintain a fixed duration, BulletShares ETFs hold bonds until they mature. This results in a more bond-like experience with a BulletShares ETF's duration shortening as it nears maturity.

From Bonds to Cash

As the bonds underlying BulletShares ETFs approach maturity, bond proceeds are typically invested in cash or cash alternatives. As the final year progresses, the ETF's cash and US Treasury positions grow and its bond exposure decreases. This results in a lower current yield than when the portfolio was more fully composed of bonds.

BulletShares® Corporate Bond ETFs begin moving to cash in the final six months of the maturity year.

Flow chart showing maturity over time Flow chart showing maturity over time

BulletShares® High Yield Corporate ETFs start to move to cash in the final 12 months.

Flow chart showing maturity over time Flow chart showing maturity over time

As a BulletShares ETF approaches maturity, its duration will move lower, helping to minimize portfolio volatility.

The charts below show the real life example of the final year of the Guggenheim BulletShares® ETFs.

The Guggenheim BulletShares 2017 ETFs matured on Dec. 31, 2017, and are no longer offered for sale. This information does not constitute an offer to sell or a solicitation of an offer to buy units of the funds.

Chart Chart Chart Chart

Finally, at the end of the calendar year, the BulletShares® ETF terminates and the fund assets, less any fees and expenses of the fund, are distributed to shareholders.

Opportunities for Reinvestment

As your 2018 BulletShares® ETFs near maturity, you may transfer your bond proceeds into another BulletShares® ETF. BulletShares ETFs are available in a variety of maturities ranging from 2019 to 2027 to help investors meet their lifestyle and portfolio needs. View available BulletShares ETFs.

Matured BulletShares ETF Summary

To date, all of the 11 maturing BulletShares® ETFs have successfully transitioned.

The following matured Guggenheim BulletShares ETFs are no longer offered for sale. This information does not constitute an offer to sell, or a solicitation of an offer to buy units of the fund.

Ticker ETF Name Maturity Date Final Net Asset Value Per Share
BSCH Guggenheim BulletShares 2017 Corporate Bond ETF 12/31/2017 $22.6290
BSJH Guggenheim BulletShares 2017 High Yield Corporate Bond ETF 12/31/2017 $25.7230
BSCG Guggenheim BulletShares 2016 Corporate Bond ETF 12/31/2016 $22.08361
BSJG Guggenheim BulletShares 2016 High Yield Corporate Bond ETF 12/31/2016 $25.81599
BSCF Guggenheim BulletShares 2015 Corporate Bond ETF 12/31/2015 $21.67973
BSJF Guggenheim BulletShares 2015 High Yield Corporate Bond ETF 12/31/2015 $25.74107
BSCE Guggenheim BulletShares 2014 Corporate Bond ETF 12/31/2014 $21.15144
BSJE Guggenheim BulletShares 2014 High Yield Corporate Bond ETF 12/31/2014 $26.25136
BSCD Guggenheim BulletShares 2013 Corporate Bond ETF 12/31/2013 $20.76709
BSJD Guggenheim BulletShares 2013 High Yield Corporate Bond ETF 12/31/2013 $25.56137
BSCC Guggenheim BulletShares 2012 Corporate Bond ETF 12/31/2012 $20.45780
BSJC Guggenheim BulletShares 2012 High Yield Corporate Bond ETF 12/31/2012 $25.41900
BSCB Guggenheim BulletShares 2011 Corporate Bond ETF 12/30/2011 $20.11990

The funds do not seek to return any predetermined amount at maturity, and the amount an investor receives may be worth more or less than their original investment. In contrast, when an individual bond matures, an investor typically receives the bond's par (or face value). The funds have designated years of maturity and will terminate on or about December 31st of their respective maturity year. In connection with such termination, each fund will make a cash distribution to then-current shareholders of its net assets after making appropriate provisions for any liabilities of the fund. The funds do not seek to return any predetermined amount at maturity. Please see the prospectus for more information about the funds' termination.

BulletShares Corporate Bond ETFs

Total Expense Ratio: 0.10% / Distribution Frequency: Monthly (if any) NYSE Arca Ticker
Invesco BulletShares 2018 Corporate Bond ETF BSCI
Invesco BulletShares 2019 Corporate Bond ETF BSCJ
Invesco BulletShares 2020 Corporate Bond ETF BSCK
Invesco BulletShares 2021 Corporate Bond ETF BSCL
Invesco BulletShares 2022 Corporate Bond ETF BSCM
Invesco BulletShares 2023 Corporate Bond ETF BSCN
Invesco BulletShares 2024 Corporate Bond ETF BSCO
Invesco BulletShares 2025 Corporate Bond ETF BSCP
Invesco BulletShares 2026 Corporate Bond ETF BSCQ
Invesco BulletShares 2027 Corporate Bond ETF BSCR
Invesco BulletShares 2028 Corporate Bond ETF BSCS

BulletShares Corporate Bond ETFs - each with a designated year of maturity ranging from 2018 through 2028 - seek investment results that correspond generally to the performance, before the funds' fees and expenses, of the corresponding Nasdaq BulletShares® USD Corporate Bond indices.

BulletShares High Yield Corporate Bond ETFs

Total Expense Ratio: 0.42% / Distribution Frequency: Monthly (if any) NYSE Arca Ticker
Invesco BulletShares 2018 High Yield Corporate Bond ETF BSJI
Invesco BulletShares 2019 High Yield Corporate Bond ETF BSJJ
Invesco BulletShares 2020 High Yield Corporate Bond ETF BSJK
Invesco BulletShares 2021 High Yield Corporate Bond ETF BSJL
Invesco BulletShares 2022 High Yield Corporate Bond ETF BSJM
Invesco BulletShares 2023 High Yield Corporate Bond ETF BSJN
Invesco BulletShares 2024 High Yield Corporate Bond ETF BSJO
Invesco BulletShares 2025 High Yield Corporate Bond ETF BSJP
Invesco BulletShares 2026 High Yield Corporate Bond ETF BSJQ

BulletShares High Yield Corporate Bond ETFs - each with a designated year of maturity ranging from 2018 through 2026 - seek investment results that correspond generally to the performance, before the funds' fees and expenses, of the corresponding Nasdaq BulletShares® USD High YieldCorporate Bond indices.

1 Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

2 The funds do not seek to return any predetermined amount at maturity, and the amount an investor receives may be worth more or less than their original investment.

3 BulletShares® ETFs offer a specific or defined maturity date vs a traditional fixed-income ETF or mutual fund that has a perpetual maturity.

The funds have designated years of maturity ranging from 2018 to 2028 and will terminate on or about December 31st of their respective maturity year. In connection with such termination, each fund will make a cash distribution to then current shareholders of its net assets after making appropriate provisions for any liabilities of the fund. The funds do not seek to return any predetermined amount at maturity. In the last six months when bonds held by the Fund mature, the portfolio will transition to cash and cash equivalents, including without limitation U.S. Treasury Bills and investment grade commercial paper. The Funds will terminate without requiring additional approval by its board or shareholders. The Board may change the termination date to an earlier or later date without shareholder approval if determined the change to be in the best interest of the Fund.

Please see the prospectus for more information about the funds' termination.

Risk & Other Information

Liquidity: Shares are not individually redeemable and owners of the shares may acquire those shares from the fund and tender those shares for redemption to the fund in creation unit aggregations only, typically consisting of 100,000 or 150,000 shares.

Transparency: ETFs disclose their full portfolio holdings daily.

Cost-effectiveness: Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed income investment to a change in interest rates. Duration is expressed as a number of years.

Volatility is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The funds' return may not match the return of the underlying index. The funds are subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the funds.

Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The funds are non-diversified and may experience greater volatility than a more diversified investment.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. During the final year of the funds' operations, as the bonds mature and the portfolio transitions to cash and cash equivalents, the funds' yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the funds and/or bonds in the market.

An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds' income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds' income.

An issuer's ability to prepay principal prior to maturity can limit the funds' potential gains. Prepayments may require the funds to replace the loan or debt security with a lower yielding security, adversely affecting the funds' yield.

The funds currently intend to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the funds' investments. As such, investments in the funds may be less tax efficient than investments in ETFs that create and redeem in-kind.

Unlike a direct investment in bonds, the funds' income distributions will vary over time and the breakdown of returns between fund distributions and liquidation proceeds are not predictable at the time of investment. For example, at times the funds may make distributions at a greater (or lesser) rate than the coupon payments received, which will result in the funds returning a lesser (or greater) amount on liquidation than would otherwise be the case. The rate of fund distribution payments may affect the tax characterization of returns, and the amount received as liquidation proceeds upon fund termination may result in a gain or loss for tax purposes.

During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the fund, the ability of the fund to value its holdings becomes more difficult and the judgment of the sub-adviser may play a greater role in the valuation of the fund's holdings due to reduced availability of reliable objective pricing data.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Nasdaq BulletShares® USD Corporate Bond Indexes and Nasdaq BulletShares® USD High Yield Corporate Bond Indexes are trademarks of Invesco Indexing LLC (index provider) and have been licensed for use by Invesco Capital Management LLC (investment adviser). Invesco Indexing LLC, Invesco Capital Management LLC, and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd.