It is a passive, defined-maturity bond ETF that tracks an index of US high-yield corporate bonds maturing in 2028. At maturity, the fund liquidates its assets and returns the proceeds to investors.

It suits income-oriented investors who want to hold until a set maturity date, seek high interest income, and are willing to accept the credit risk of high-yield corporate bonds.

It is an ETF managed by Invesco using a passive (index-tracking) approach.

The fund tracks an index of US dollar-denominated high-yield corporate bonds maturing in 2028. Unlike typical bond funds that continually roll over their maturities, it has a fixed maturity like an individual bond, and at maturity it liquidates its remaining assets and returns them to investors.

• A structure with a fixed maturity, like an individual bond
• A defined-maturity fund that liquidates its assets and returns them at maturity

Assets under management (AUM) stand at $772.9M, and the expense ratio is 0.42% per year.

Unlike a typical high-yield ETF, it has a fixed maturity, which makes its cash flows easier to anticipate if held to maturity. However, given the nature of high-yield corporate bonds, it is exposed to default and credit risk.

High-yield corporate bonds react sensitively to the economic cycle and to credit spread movements. As maturity approaches, duration shortens, and price swings caused by interest rate changes tend to diminish gradually. In periods of rising credit concerns, however, prices can still be volatile.

Money tends to flow into defined-maturity high-yield ETFs when demand is strong from income seekers who want a set maturity and high interest income, while outflows can occur when risk aversion toward credit grows stronger.

Its strengths are a fixed maturity and high interest income, while its weakness is the credit risk of high-yield corporate bonds.

HYG, USHY, SPHY, and others shown in the table are standard high-yield corporate bond ETFs that continually roll over their maturities and have no defined-maturity structure. For more exposure to high-yield corporate bonds, you can also compare JNK, a flagship high-yield fund, SHYG, a short-duration high-yield fund, and ANGL, which invests in upgraded (fallen angel) bonds. They differ in maturity structure, credit quality, and fees, so it is best to choose according to your investment goals.

Here are the points to review before investing in BSJS. As a defined-maturity high-yield ETF, it is important to check credit risk, maturity structure, fee level, and your reinvestment plan in advance.

Because of its heavy weighting in high-yield corporate bonds, the risk of defaults and price declines is significant during economic slowdowns or credit crunches. Since the assets are liquidated at maturity, you should also consider drawing up a reinvestment plan for the period after maturity.

It is a defined-maturity ETF suited to income-oriented investors who want to hold until a set maturity date, seek high interest income, and are willing to accept the credit risk of high-yield corporate bonds. If you want continuous exposure with no maturity, a standard high-yield ETF may be the better alternative, while if you want a fixed maturity, BSJS may be the better choice.