What Is the BSCS ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A defined-maturity investment-grade corporate bond ETF set to mature in 2028. A target-date bond product that combines monthly distributions with a return of principal at termination.
SubscribeWhat Is This ETF?
The fund tracks the Invesco BulletShares Corporate Bond 2028 Index, which measures the performance of a portfolio of US dollar-denominated investment-grade corporate bonds maturing in 2028. It has a defined-maturity structure: the fund is scheduled to liquidate around December 15, 2028, and distribute principal to shareholders.
It suits investors who need funds at a specific point around 2028, as well as bond investors who want the defined maturity of an individual bond while still benefiting from diversification.
Invesco launched the ETF in 2020, and it is passively managed (index-tracking).
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Invesco BulletShares Corporate Bond 2028 Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Monthly |
| Distribution Frequency | Monthly |
| Total Expense Ratio | 0.10% |
| Scheduled Termination Date | Around December 2028 |
The fund holds investment-grade corporate bonds concentrated in 2028 maturities, providing a defined-maturity cash flow similar to holding bonds directly. When the fund matures, it liquidates and distributes principal to investors, effectively implementing an individual bond ladder strategy in ETF form.
- Defined 2028 maturity: useful for planning funds for a target date
- Diversified holdings of investment-grade corporate bonds reduce issuer credit concentration risk compared with individual bonds
Size and Costs
Assets under management (AUM) stand at $3.5B, and the expense ratio is 0.10% per year.
Compared with high-yield series of the same maturity, it focuses on investment-grade bonds and therefore carries relatively lower credit risk. Unlike perpetual investment-grade corporate bond ETFs such as LQD and USIG, its maturity is fixed, so interest rate sensitivity gradually declines.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIn a rising-rate environment, mark-to-market losses on an existing bond portfolio are unavoidable. However, because of its defined-maturity design, duration declines naturally the longer the fund is held, easing sensitivity to interest rate changes. Yield volatility also tends to narrow as maturity approaches.
Amid expectations of rate cuts and tightening investment-grade credit spreads, inflows tend to move into short- and medium-term target-maturity bond ETFs, and steady demand for building portfolio bond ladders continues to support this series.
Strengths and Weaknesses
The fund combines two advantages, a defined maturity and diversification, but investors must plan a separate reinvestment strategy for after maturity.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
LQD and USIG, which are compared in the table, are perpetual ETFs that continuously invest in investment-grade corporate bonds with no maturity limit. They lack a defined-maturity structure but offer large assets under management and high liquidity. HYG and USHY are high-yield bond ETFs rather than investment-grade, and carry relatively higher credit risk, while SPHY is a low-cost high-yield ETF. Other funds in the same Invesco BulletShares series with different maturities, such as BSCR (2027) and BSCT (2029), can also be considered when building a bond ladder.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | $104.27 | +0.1% | $32.0B | 0.14% | 4.84% | -6.6% |
 USHY | iShares Broad USD High Yield Corporate Bond ETF | $35.76 | -0.3% | $26.8B | 0.08% | 7.13% | -4.8% |
 USIG | iShares Broad USD Investment Grade Corporate Bond ETF | $49.55 | +0.1% | $18.0B | 0.04% | 4.91% | -5.2% |
 HYG | iShares iBoxx USD High Yield Corporate Bond ETF | $77.43 | -0.2% | $17.8B | 0.49% | 6.07% | -4.2% |
 SPHY | State Street SPDR Portfolio High Yield Bond ETF | $22.60 | -0.2% | $11.9B | 0.05% | 7.38% | -5.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| CVS | CVS Health Corp | 0.04% | $90.25 | -0.1% | $115.4B | 23.8 | 3.02% |
| AMGN | AMGEN Inc | 0.03% | $466.01 | +1.1% | $251.9B | 28.9 | 2.17% |
| CI | Cigna Group | 0.03% | $298.23 | -0.1% | $78.8B | 12.3 | 2.08% |
| CRM | Salesforce Inc | 0.01% | $229.17 | -0.8% | $188.6B | 20.9 | 0.49% |
Investor Checkpoints
Before investing in BSCS, it is important to understand the characteristics of the defined-maturity structure and investment-grade credit risk in advance. Check whether you have a 2028 target-date funding need, along with the interest rate environment.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📅 Investment Target Date | Confirm whether your need for funds around 2028 matches the maturity | Scheduled to terminate in December 2028 |
| 💵 Expense Ratio | Check the fee level relative to the category average | Low fee level |
| 📊 Credit Quality | Share of investment-grade bonds and credit rating distribution of holdings | Focused on investment grade |
| 💱 Exchange Rate | Because the bonds are dollar-denominated, exchange rates affect returns when converted to won | No currency hedge applied |
In a rising-rate environment, valuation losses can occur before maturity, and there is also a risk of principal loss if the credit quality of a held bond's issuer deteriorates. Overall investment results may vary depending on the interest rate level at the time of reinvestment after maturity.
This is a defined-maturity ETF suited to investors who want diversified investment-grade corporate bond exposure with 2028 as the target date. Unlike perpetual bond ETFs, it has a clear termination date, making it highly useful for fund planning and bond ladder strategies.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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