Emerging Market Debt ETF Family Debuts

Today Invesco took target-maturity bond ETFs in a new direction, adding a new dimension to its BulletShares family with the rollout of four funds. The new products are:

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

Each of the four funds comes with an expense ratio of 0.29% and lists on the NYSE Arca.

The underlying indexes for each one will invest in emerging market bonds maturing in the targeted year. The bonds in question must be denominated in U.S. dollars and issued by corporations or government entities in one of 22 emerging market countries. The securities in the index can be investment-grade or high-yield debt, according to the prospectus.

Typically, the underlying indexes will each include 20 to 400 securities, the document says.

Invesco’s BulletShares family has been pitted against the iShares iBonds family, the only other target-maturity bond family. Both families have about $6 billion in assets under management.

While the BulletShares include two subgroups covering high-yield corporate debt and investment-grade corporate debt, the iBonds family covers investment-grade corporate debt and municipal bonds.

Contact Heather Bell at [email protected]