Invesco BulletShares 2028 USD Corporate Bond UCITS ETF GBP Hdg Dist

Issuer: Invesco

Asset Class: Fixed Income

TER: 12bps

Trading Currency: GBX

Pays Income: False

Listing Date: 05 Jul 2024

Ticker: B28G

ISIN: IE000QAO7DD4

This investment product provides exposure to a diversified portfolio of US dollar-denominated, investment-grade corporate bonds that are all scheduled to mature in the year 2028. It follows a defined-maturity or 'target date' bond strategy, which distinguishes it from traditional bond funds. Instead of maintaining a constant duration by buying and selling bonds, this fund acquires a basket of bonds and holds them until maturity. As the fund approaches its target year, its overall duration naturally decreases, which systematically reduces its sensitivity to interest rate fluctuations. At the end of its term in 2028, the fund will be liquidated, and the net proceeds will be distributed to investors.

This fund is designed for investors seeking predictable income and a specific investment horizon, mimicking the experience of owning an individual bond but with the advantages of diversification, professional management, and exchange-traded liquidity. It is particularly well-suited for those planning for a specific future financial liability or goal set for 2028. The strategy allows an investor to potentially lock in a yield for a defined period while methodically managing interest rate risk over the life of the investment. The focus on investment-grade corporate debt appeals to those looking for a balance between higher yields than government bonds and a prudent level of credit quality. This specific share class is also currency-hedged, aiming to minimize the impact of exchange rate movements on returns for investors.