This article was originally published on ETFTrends.com.
Invesco launched a new suite of defined maturity BulletShares® ETFs on Thursday with exposure to emerging markets debt to offer investors the opportunity to precisely control emerging markets duration exposure by targeting a unique entry point on the emerging markets debt yield curve.
The four ETFs are as follows:
- Invesco BulletShares 2021 USD Emerging Markets Debt ETF (NYSEArca:BSAE)
- Invesco BulletShares 2022 USD Emerging Markets Debt ETF (NYSEArca:BSBE)
- Invesco BulletShares 2023 USD Emerging Markets Debt ETF (BSCE)
- Invesco BulletShares 2024 USD Emerging Markets Debt ETF (NYSEArca:BSDE)
Dan Draper, Global Head of ETFs at Invesco, said the new BulletShares Emerging Markets ETFs continue to democratize the bond laddering process for investors, offering a convenient and liquid way to meet the market for defined income needs.
"Offering new debt exposure in the BulletShares family speaks to Invesco's commitment to accelerating growth in the decade-old suite," Draper said.
The four new ETFs offer investors a unique and easily accessible means of building or managing a specific maturity laddered income stream focused on emerging markets debt. BulletShares Emerging Markets Debt ETFs may also mitigate local currency exposure by focusing on US dollar-denominated bonds. Similar to individual emerging markets bonds, BulletShares offer the potential for monthly income and a cash distribution at the fund's termination. 1
Jason Bloom, Director of Global Macro ETF Strategy at Invesco, said investors are looking to invest in emerging markets debt.
"An increasing number of investors are seeking opportunities in emerging markets debt, which offers relatively attractive yields based on comparable credit ratings," Bloom said. "Using BulletShares as a means of holding bonds to maturity may help to insulate investors from the risk of rising rates while offering overall portfolio diversification."
With the inclusion of the newest BulletShares ETFs, the full suite of 22 ETFs now has defined years of maturity ranging from 2018 to 2028. The BulletShares ETF Suite is comprised of 10 Corporate Bond ETFs, eight High Yield Corporate Bond ETFs and four Emerging Markets Debt ETFs that each hold a portfolio of bonds that all mature in a target year. The new ETFs will track the Nasdaq BulletShares USD Emerging Markets Debt Indexes and will rebalance monthly.
Invesco also offers the BulletShares® ETF Bond Ladder Tool to provide a convenient way to build a hypothetical laddering strategy with BulletShares, based on maturity and credit criteria. The Tool uncovers specific BulletShares ETFs that enable an investor to build a customized fixed income portfolio tailored to a specific maturity profile, risk preference and investment goal.
For more news and strategy in the fixed income space, visit our Fixed Income Channel.
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