What this ETF is trying to do

The Invesco BulletShares 2029 Municipal Bond ETF (BSMT) is an exchange-traded fund. While the specific holdings are not listed in this report, this type of ETF generally focuses on municipal bonds that mature in a specific year—in this case, 2029.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the change in share price and any cash distributions (dividends) paid out to investors.

For BSMT, the numbers show:

• Year-to-Date (YTD): The price return is approximately -3.61%, while the total return is approximately -1.60%.

• One Year: The price return is approximately -3.38%, while the total return is approximately -0.72%.

• Three Year: The price return is approximately 1.32%, while the total return is approximately 10.11%.

To visualize the price change, we can look at an estimated example. The estimated price from roughly one year ago was $23.10, and the current price is $22.32.

Income and distribution explanation

Some investors look at ETFs for regular cash payments, known as distributions. BSMT has a distribution yield of approximately 2.81%. These payments usually happen monthly, with the most recent data showing 12 distributions over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same amount as their total return. Total return is the most complete way to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. StockValueFinder uses an erosion-risk score to measure this risk.

BSMT has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price movement is not currently showing signs of high erosion risk according to these measurements.

Pros

• The fund provides regular monthly distributions.

• The three-year total return is positive at approximately 10.11%.

• The erosion-risk measurements suggest a stable profile.

Cons

• The year-to-date and one-year price returns have been negative.

• The total returns for the past year have also been negative.

Beginner takeaway

When studying BSMT, remember that share prices can go up or down. While the price of a share might fall, the total return tells a fuller story by including the cash distributions paid to you. Always look at both the price return and the total return to get a complete picture of performance.