Invesco BulletShares 2034 Municipal Bond ETF

Frequently Asked Questions About BSMY

What does BSMY invest in?

The Invesco BulletShares 2034 Municipal Bond ETF seeks to track the performance of the Invesco BulletShares USD Municipal Bond 2034 Index. To achieve this, the Fund commits at least 80% of its portfolio to municipal bonds that are included in this index. The underlying Index is designed to measure the returns of a collection of US dollar-denominated municipal securities, which have been issued by American state, state agency, or local governments and are slated to mature in 2034. Rather than purchasing every security in the Index, the Fund utilizes a "sampling" strategy to effectively meet its investment objective. Both the Fund and the Index are adjusted monthly. This Fund has a planned maturity year of 2034 and is set to conclude its operations on or about December 15, 2034. For more detailed information, please refer to the prospectus.

What is the expense ratio of BSMY?

Invesco BulletShares 2034 Municipal Bond ETF (BSMY) charges an expense ratio of 0.18%. This is the annual fee deducted from fund assets to cover management and operations.

What is BSMY's distribution yield?

BSMY's trailing-twelve-month yield is 3.68%, calculated from the sum of distributions over the past year divided by the current price.

How does BSMY's covered-call strategy work?

BSMY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of BSMY?

Effective duration measures BSMY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BSMY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BSMY?

BSMY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.