Invesco has entered the fixed-maturity bond ETF market with the launch of five target-dated corporate bond ETFs.
The five ETFs, tracking US dollar-denominated corporate bonds, are listed on the London Stock Exchange with a total expense ratio (TER) of 0.10%.
The five ETFs are:
Invesco BulletShares 2026 USD Corporate Bond UCITS ETF (BS6A)
Invesco BulletShares 2027 USD Corporate Bond UCITS ETF (BS7A)
Invesco BulletShares 2028 USD Corporate Bond UCITS ETF (BS8A)
Invesco BulletShares 2029 USD Corporate Bond UCITS ETF (BS9A)
Invesco BulletShares 2030 USD Corporate Bond UCITS ETF (BS0A)
The range tracks Bloomberg indices, measuring the performance of US-denominated investment-grade corporate bonds ranging from 2026 to 2030.
Companies will excluded from the index if they are involved in “controversial business activities” or have a "severe ESG-related issue”.
The ETFs will use a sampling strategy that will aim to represent the characteristics of the entire index.
Once an ETF reaches maturity the proceeds will invest in US Treasury debt.
Gary Buxton (pictured), head of EMEA ETFs and indexed strategies at Invesco, said: “Institutional investors often employ a strategy where they build a portfolio of bonds that produces an income stream that closely matches their liabilities.
“These ETFs could help pension funds match their liabilities but equally provide a simple, low-cost solution for parents needing to plan for school fees or someone saving for a house purchase.”
Paul Syms, head of EMEA fixed income and commodity ETF product management at Invesco, said: “Investors can use our BulletShares ETFs for longer-term financial planning through what is known as bond laddering.
This would provide a more predictable income to either be taken by the investor every quarter or be automatically accumulated within the fund.”
Invesco follows BlackRock, DWS and Amundi in launching a range of fixed maturity ETFs.
Earlier this month, Amundi launched the first fixed maturity German bund ETF.
