Invesco Launches New Emerging Markets BulletShares Suite

Four new ETFs offer defined maturity exposure in emerging markets

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Oct 04, 2018, 08:30 ET

ATLANTA, Oct. 4, 2018 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) a leading global provider of exchange-traded funds (ETFs), announced today the launch of a new suite of defined maturity BulletShares® ETFs with exposure to emerging markets debt. BulletShares Emerging Markets ETFs will for first time 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 launching are as follows:

Invesco BulletShares 2021 USD Emerging Markets Debt ETF (Ticker: BSAE)
Invesco BulletShares 2022 USD Emerging Markets Debt ETF (Ticker: BSBE)
Invesco BulletShares 2023 USD Emerging Markets Debt ETF (Ticker: BSCE)
Invesco BulletShares 2024 USD Emerging Markets Debt ETF (Ticker: BSDE)

"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," explained Dan Draper, Global Head of ETFs at Invesco. "Offering new debt exposure in the BulletShares family speaks to Invesco's commitment to accelerating growth in the decade-old suite."

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, offers more background, "An increasing number of investors are seeking opportunities in emerging markets debt, which offers relatively attractive yields based on comparable credit ratings. 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."²

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.

About Invesco Ltd.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.

Risks and other Important Information

1 These ETFs do not seek to return any predetermined amount at maturity, and the amount an investor receives may be worth more or less than their original investment. In contrast, when an individual bond matures, an investor typically receives the bond's par (or face value).

2 Diversification does not ensure a profit or eliminate the risk of loss.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The funds' return may not match the return of the underlying index. The funds are subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the funds.

Investments focused in a particular sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The funds are non-diversified and may experience greater volatility than a more diversified investment.

Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

During the final year of the funds' operations, as the bonds mature and the portfolio transitions to cash and cash equivalents, the funds' yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the funds and/or bonds in the market.

An issuer may be unable or unwilling to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating.

The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Income generated from the funds is based primarily on prevailing interest rates, which can vary widely over the short- and long-term. If interest rates drop, the funds' income may drop as well. During periods of rising interest rates, an issuer may exercise its right to pay principal on an obligation later than expected, resulting in a decrease in the value of the obligation and in a decline in the funds' income.

An issuer's ability to prepay principal prior to maturity can limit the funds' potential gains. Prepayments may require the funds to replace the loan or debt security with a lower yielding security, adversely affecting the funds' yield.

The funds currently intend to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the funds' investments. As such, investments in the funds may be less tax efficient than investments in ETFs that create and redeem in-kind.

Unlike a direct investment in bonds, the funds' income distributions will vary over time and the breakdown of returns between fund distributions and liquidation proceeds are not predictable at the time of investment. For example, at times the funds may make distributions at a greater (or lesser) rate than the coupon payments received, which will result in the funds returning a lesser (or greater) amount on liquidation than would otherwise be the case. The rate of fund distribution payments may affect the tax characterization of returns, and the amount received as liquidation proceeds upon fund termination may result in a gain or loss for tax purposes.

During periods of reduced market liquidity or in the absence of readily available market quotations for the holdings of the fund, the ability of the fund to value its holdings becomes more difficult and the judgment of the sub-adviser may play a greater role in the valuation of the fund's holdings due to reduced availability of reliable objective pricing data.

The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.

Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 100,000 or 150,000 shares,

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.

Nasdaq BulletShares^® USD Emerging Markets Debt Indexes are trademarks of Invesco Indexing LLC (index provider) and have been licensed for use by Invesco Capital Management LLC (investment adviser). Invesco Indexing LLC, Invesco Capital Management LLC, and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd.

Note: Not all products are available through all firms.

Not FDIC insured | May Lose Value | No Bank Guarantee

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund call 800.983.0903 or visit invesco.com for the prospectus/summary prospectus.