BSCT ETF: What Is It? — Total Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An investment-grade US dollar corporate bond ETF with a maturity set for December 2029. Upon maturity, principal is returned to investors and the fund is liquidated.
SubscribeWhat is this ETF?
This is a defined-maturity investment-grade corporate bond ETF that tracks the Nasdaq BulletShares USD Corporate Bond 2029 Index. It is differentiated from typical bond ETFs in that the fund is liquidated upon maturity in December 2029, distributing the held principal back to investors.
It is well-suited for investors planning their capital around a 2029 target date, or for those seeking diversified exposure to investment-grade corporate bonds while locking in a fixed maturity.
The ETF was launched in 2019 by Invesco and follows a passive (index-tracking) management approach.
How do you invest?
| Item | Details |
|---|---|
| Tracked Index | Nasdaq BulletShares USD Corporate Bond 2029 Index |
| Management Style | Passive (Index Tracking) |
| Rebalancing Frequency | Once per Month |
| Dividend Frequency | Monthly |
| Total Expense Ratio | 0.10% |
| Maturity / Liquidation Date | On or around December 15, 2029 |
The fund holds US dollar-denominated investment-grade corporate bonds maturing in 2029, weighted on a market-cap basis. As maturity approaches, the portfolio's duration shortens naturally, and at the December 2029 liquidation, remaining principal and interest are distributed to investors.
- Defined-maturity structure: Cash flow planning is enabled through principal repayment following the December 2029 liquidation
- Credit risk is kept below a defined threshold by holding only investment-grade corporate bonds
Size and Cost
Assets under management (AUM) stand at $3.1B, and the total expense ratio is 0.10% annually.
When paired with other BulletShares series ETFs of differing maturity years, such as BSCS (2028 maturity) and BSCU (2030 maturity), investors can construct a bond ladder strategy. Unlike the traditional bond ETF LQD, it has a fixed maturity, making duration management straightforward.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeDuring periods when rate-cut expectations are priced in, investment-grade corporate bonds broadly see price recoveries, and BSCT moves in tandem with this trend. As maturity approaches, the shorter remaining tenor reduces price sensitivity.
Steady growth in demand for defined-maturity structures has supported continued AUM expansion across the BulletShares series. Retirement account and target-date capital allocation needs have been the primary drivers of inflows.
Pros and Cons
The defined-maturity structure and low expense ratio are strengths, but investors should be mindful of price-decline risk during rate-hike cycles and the potential for losses when selling before maturity.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
LQD, shown in the table, is a representative ETF holding a broad range of investment-grade corporate bonds without a fixed maturity, and USIG is a similar broad investment-grade corporate bond ETF. USHY, HYG, and SPHY are high-yield corporate bond ETFs that pursue higher returns at the cost of greater credit risk. Additionally, other ETFs in the same BulletShares series with different maturity years, such as BSCS (2028 maturity) and BSCU (2030 maturity), can be combined to build a bond ladder strategy.
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 |
|---|---|---|---|---|---|---|---|
| ABBV | Abbvie Inc | 0.03% | $294.89 | +1.4% | $521.1B | 83.4 | 2.32% |
| CRM | Salesforce Inc | 0.01% | $229.17 | -0.8% | $188.6B | 20.9 | 0.49% |
| IBM | International Business Machines Corp | 0.02% | $257.81 | -0.2% | $243.7B | 22.0 | 2.62% |
| CNC | Centene Corp | 0.02% | $68.45 | -0.3% | $33.9B | 23.5 | - |
| T | AT&T Inc | 0.01% | $21.41 | +2.3% | $144.2B | 11.5 | 5.18% |
| VZ | Verizon Communications Inc | 0.01% | $44.73 | +2.5% | $185.4B | 11.4 | 6.31% |
| BUD | Anheuser-Busch InBev SA/NV ADR | 0.01% | $80.38 | +1.1% | $140.6B | 17.3 | 1.81% |
Investor Checkpoints
Key points to verify before investing in BSCT. Given the defined-maturity structure, it is important to clearly confirm in advance whether you intend to hold through 2029 and align that with your target date for using the capital.
| Checkpoint | Verification | Current Status |
|---|---|---|
| Maturity Date Alignment | Confirm that the ETF's liquidation date aligns with your 2029 capital plan | Liquidation scheduled for December 2029 |
| Expense Ratio | Review the fee burden under passive management | Maintained at a low level |
| Credit Rating Distribution | Check the investment-grade corporate bond weighting and rating distribution in the portfolio | Held to investment-grade standards |
| Currency Impact | Assess how dollar exchange rate movements affect won-converted returns for a USD-denominated asset | Currency-hedging not applied |
Changes in the interest rate environment directly affect bond prices, and selling before maturity can result in losses relative to the purchase price. Credit rating changes at individual issuers also affect portfolio value.
This is a defined-maturity bond ETF suited for investors planning to deploy capital in 2029. The principal repayment structure at maturity is clear, and the low expense ratio combined with the investment-grade filter supports stable management.
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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