BSJX: Invesco BulletShares 2033 High Yield Corporate Bond ETF
ETF Education Report: Invesco BulletShares 2033 High Yield Corporate Bond ETF (BSJX)
What this ETF is trying to do
This ETF, known by its ticker symbol BSJX, focuses on high-yield corporate bonds. It is designed to provide exposure to a specific group of bonds that are set to mature around the year 2033.
What the numbers show
When looking at an ETF, it is important to separate the share price from the total return.
• Price Return: This measures only the change in the ETF's share price. For the past year, the one-year price return was approximately -4.92%. Year-to-date (YTD), the price return is approximately -4.60%.
• Total Return: This includes both the share price changes and the cash distributions paid out to investors. While the share price went down over the last year, the one-year total return was actually positive at approximately 1.69%. The YTD total return is approximately -0.38%.
To visualize the price change, an investor's share price was estimated to be roughly $25.53 one year ago, compared to the current price of $24.28.
Income and distribution explanation
This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 6.99%. This means the amount of cash paid out is about 6.99% relative to the current ETF price. These distributions usually happen monthly, with 12 payments recorded over the last year. It is important to remember that a high distribution yield does not guarantee that an investor will earn that same percentage as a total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing. For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• The ETF provides a significant distribution yield of approximately 6.99%.
• The total return over the last year was positive (1.69%), even though the share price fell.
• The erosion-risk measurements suggest a stable profile.
Cons
• The share price has experienced a decline over the last year and year-to-date.
• Total returns can be lower than the distribution yield suggests.
Top Holdings
The following are some of the top holdings in this portfolio (note that this is a partial list):
• TRANSDIGM, INC. 6.375% (2.26%)
• LEVEL 3 FINANCING, INC. 6.875% (1.75%)
• MICHAELS COMPANIES INC. 8.5% (1.70%)
• SWORD PURCHASER LLC 8.25% (1.63%)
• OLYMPUS WATER US HOLDING CORP. 7.25% (1.35%)
• NEPTUNE BIDCO US INC. 9.5% (1.30%)
• CACI INTERNATIONAL INC. 6.375% (1.28%)
• QUIKRETE HOLDINGS INC 6.75% (1.28%)
• TRANSDIGM, INC. 6% (1.26%)
• SINCLAIR TELEVISION GROUP, INC. 8.125% (1.25%)
*Holdings are subject to change over time.*
Beginner takeaway
When looking at BSJX, it is helpful to distinguish between the share price and the total return. While the price of a single share has gone down recently, the cash distributions help boost the total return. Always look at the total return to see how much value was actually created or lost, rather than just looking at the share price or the yield alone.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | n/a | 2.48% |
| 2 | TRANSDIGM, INC. 6.375% | n/a | 2.26% |
| 3 | LEVEL 3 FINANCING, INC. 6.875% | n/a | 1.75% |
| 4 | MICHAELS COMPANIES INC. 8.5% | n/a | 1.70% |
| 5 | SWORD PURCHASER LLC 8.25% | n/a | 1.63% |
| 6 | OLYMPUS WATER US HOLDING CORP. 7.25% | n/a | 1.35% |
| 7 | NEPTUNE BIDCO US INC. 9.5% | n/a | 1.30% |
| 8 | CACI INTERNATIONAL INC. 6.375% | n/a | 1.28% |
| 9 | QUIKRETE HOLDINGS INC 6.75% | n/a | 1.28% |
| 10 | TRANSDIGM, INC. 6% | n/a | 1.26% |