Invesco BulletShares 2028 High Yield Corporate Bond ETF

BSJS

Market cap $474M

Markets are steadily preparing for the Federal Reserve to begin cutting interest rates in the coming months. Recent analysis from Invesco chief global market strategist Kristina Hooper evaluated how they responded to economic indicators in March.

Both iShares and Invesco offer a series of HY bond ETFs that only hold bonds that mature within a single calendar year. Here I review & compare the iShares iBonds 2028 Term High Yield Income ETF against the Invesco BulletShares 2028 High Yield Corporate Bond ETF. After comparing these two ETFs and then their YTM value against others in both series, I gave the BSJS ETF a Buy rating; with the IBHH ETF getting a Hold.

Invesco BulletShares 2028 High Yield Corporate Bond ETF provides convenient access to high yield bonds maturing in 2028. All-time low credit spreads do not reflect reality, as actual defaults continue to increase. This signals potential risks for high yield bonds. Although buy-and-hold investors can expect 5-7% p.a. forward returns, I believe the best course of action is to wait for a more favourable entry.