BSCV ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A maturity-matched bond ETF that invests in investment-grade corporate bonds maturing in 2031 and returns principal and interest to shareholders upon liquidation. It is useful for building a fund toward a specific goal.
SubscribeWhat Is This ETF?
BSCV is a defined-maturity ETF designed to liquidate around December 15, 2031. Its portfolio consists of investment-grade corporate bonds, and as maturity approaches, its duration shortens, which reduces price risk from interest rate changes.
It suits investors who want to build a target fund needed around 2031, or who want predictable interest income while managing interest rate risk.
Invesco launched this passive (index-tracking) ETF in 2021.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Invesco BulletShares USD Corporate Bond 2031 Index |
| Management Style | Passive (maturity-matched) |
| Expected Liquidation Date | Around December 15, 2031 |
| Distribution Frequency | Monthly |
| Total Expense Ratio | 0.10% |
The fund holds investment-grade corporate bonds maturing in 2031 on a market-capitalization-weighted basis. As maturity nears, the bonds it holds are converted to cash, and at final liquidation the fund distributes its net asset value to shareholders and then terminates.
- Predictability from a fixed liquidation date
- Interest rate sensitivity that automatically declines as maturity approaches
Size and Costs
Assets under management (AUM) stand at $1.9B, and the total expense ratio is 0.10% per year.
A typical bond ETF maintains a constant maturity range, but the maturity of BSCV shortens over time, producing an effect similar to holding individual bonds.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBond prices fluctuate with changes in the interest rate environment, but given the maturity-matched structure, if you hold to maturity, the yield at the time of initial entry has a greater impact on final performance than market price movements.
As the perception grows that interest rates have peaked, demand to lock in interest income for a specific period has increased, and money has been flowing into the maturity-matched ETF market. The product is especially popular for managing retirement funds, for investors who prefer stable cash flow.
Strengths and Weaknesses
Its strengths are a predictable maturity and stable interest income, but you should consider issuer credit risk and the risk of market price fluctuations if you sell before maturity.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
While LQD, USIG, and others shown in the table are perpetual ETFs that maintain a constant maturity, BSCV is a finite-life product that terminates in 2031. If you are building a bond ladder, you can pair it with BSCT, which matures in 2030, or BSCW, which matures in 2032, and BlackRock's iBonds series product IBMW is also a competing option. If you want the higher yields of below-investment-grade bonds, you can consider high-yield ETFs such as USHY, HYG, and SPHY, but the risk is higher.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 LQD | iShares iBoxx USD Investment Grade Corporate Bond ETF | $104.22 | +0.1% | $30.6B | 0.14% | 4.84% | -7.2% |
 USHY | iShares Broad USD High Yield Corporate Bond ETF | $35.86 | +0.0% | $26.6B | 0.08% | 7.11% | -4.8% |
 USIG | iShares Broad USD Investment Grade Corporate Bond ETF | $49.48 | +0.2% | $18.0B | 0.04% | 4.92% | -5.7% |
 HYG | iShares iBoxx USD High Yield Corporate Bond ETF | $77.58 | -0.0% | $17.7B | 0.49% | 6.06% | -4.2% |
 SPHY | State Street SPDR Portfolio High Yield Bond ETF | $22.64 | -0.1% | $11.8B | 0.05% | 7.37% | -5.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| ABBV | Abbvie Inc | 0.02% | $290.79 | +1.7% | $513.9B | 82.2 | 2.36% |
| MSFT | Microsoft Corp | 0.02% | $530.14 | -0.2% | $3.94T | 27.7 | 0.74% |
 IVZ | Invesco Ltd | 0.02% | $29.02 | +1.2% | $12.8B | - | 2.96% |
| WFC | Wells Fargo & Co | 0.01% | $84.81 | +1.4% | $254.6B | 11.9 | 2.24% |
| ORCL | Oracle Corp | 0.01% | $139.56 | -3.5% | $422.0B | 21.9 | 1.41% |
| MS | Morgan Stanley | 0.01% | $190.00 | -0.1% | $298.4B | 15.1 | 2.27% |
| JPM | JPMorgan Chase & Co | 0.02% | $343.58 | +1.3% | $913.3B | 14.4 | 1.86% |
| C | Citigroup Inc | 0.01% | $125.76 | +1.3% | $211.0B | 12.3 | 2.04% |
| GS | Goldman Sachs Group Inc | 0.01% | $927.73 | +0.3% | $270.1B | 13.3 | 2.06% |
Investor Checkpoints
BSCV is a useful tool for investors who want to build funds for a specific point in time or who want stable cash flow. Please review the following points before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| ⏳ Target Horizon | Confirm whether you plan to hold until 2031 | Needs confirmation |
| 📉 Rate Outlook | Satisfaction with the expected yield at the current entry point | Holding steady |
| 💵 Expense Ratio | Check the cumulative cost burden over a long holding period | Very good |
| 🏢 Issuer Credit | Investment-grade composition and degree of credit risk diversification | Adequate |
Maturity-matched products are designed on the premise that you hold them to maturity, so you should be aware that liquidating early during sharp market swings can lead to unexpected losses.
For investors with a clear target date of 2031, it is a good alternative that removes the complexity of investing in individual bonds. With stable interest income and a predictable liquidation date, it is well suited to efficient asset allocation.
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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