New BulletShares ETFs Planned

May 24, 2018

Invesco PowerShares, which will soon drop the PowerShares name from its brand, has filed for two more additions to the well-known BulletShares lineup of target-maturity fixed-income ETFs. The Invesco BulletShares 2028 Corporate Bond ETF and the Invesco BulletShares 2026 High Yield Corporate Bond ETF, like the other BulletShares products, will track indexes provided by Nasdaq that target bonds maturing in a certain year.

The proposed ETFs will replace the two existing funds set to mature in 2018, the PowerShares BulletShares 2018 Corporate Bond Portfolio (BSCI) and the PowerShares BulletShares 2018 High Yield Corporate Bond Portfolio (BSJI).

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There are currently 18 funds in the BulletShares family, with eight tracking the high-yield corporate bond space and 10 tracking investment-grade corporate bonds. They range in size from the smallest, the $22.6 million PowerShares BulletShares 2027 Corporate Bond Portfolio (BSCR), to the largest, the $1.1 billion PowerShares BulletShares 2020 Corporate Bond Portfolio (BSCK). The whole family of 18 ETFs has nearly $10 billion in assets under management.

The filing does not include tickers or expense ratios. However, all the high-yield funds in the BulletShares family charge expense ratios of 0.42%, while all the investment-grade funds charge 0.10%. Given that the tickers tend to go in alphabetical order, one could extrapolate that the high-yield fund will likely use the ticker BSJQ, while the investment-grade fund will likely use BSCS.

However, those two features could change given that PowerShares purchased BulletShares issuer Guggenheim earlier this year and is clearly going through some transformations itself, as the issuer is dropping the PowerShares brand in favor of parent company Invesco’s brand name. These will be the first BulletShares launched under the “Invesco” brand. Given those changes, it doesn’t seem far-fetched that Invesco might tinker with the ticker symbols and expense ratios.

Both of the proposed funds are slated to list on the NYSE Arca.

Contact Heather Bell at [email protected]

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