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Corporate Bond ETF (BSCR) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, Invesco BulletShares 2027 Corporate Bond ETF BSCR is probably a suitable pick. The fund just hit a 52-week high and is up 22.8% from its 52-week low price of $17.89/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

BSCR in Focus

This ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Nasdaq Bulletshares USD Corporate Bond 2027 Index. It has an AUM of $209.3 million and charges 10 basis points (bps) in annual fees.

Why the Move?

The Federal Reserve has announced new initiatives to support the ailing U.S. economy. The central bank has pledged to make individual corporate bonds purchases under its Secondary Market Corporate Credit Facility (SMCCF). Notably, under the SMCCF emergency lending program that has a capacity of $250 billion, the Fed has already invested about $5.5 billion in ETFs that buy corporate bonds. The Fed has pledged to keep pumping in stimulus to support the economy and strengthen it. These factors are making funds like BSCR attractive investment options. Also, the coronavirus outbreak raising global economic slowdown concerns might spur its demand among investors.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 7.90, which gives cues of further rally.

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Invesco BulletShares 2027 Corporate Bond ETF (BSCR): ETF Research Reports
 
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