USFR - BSCO: Time To Crystallize Your Gains (Rating Downgrade)
2024-05-30 22:57:59 ET
Summary
- The Invesco BulletShares 2024 Corporate Bond ETF has delivered steady returns and has a shallow drawdown profile compared to other fixed income instruments.
- The fund's maturity later this year and the tight credit spread environment make it better to sell now and invest in risk-free funds as a cash alternative.
- The fund's current analytics show a 30-day yield below treasuries, making it riskier and yielding less than treasuries, with no upside potential.
- Investors should consider investing in treasury funds like the WisdomTree Floating Rate Treasury Fund ETF.
Thesis
The Invesco BulletShares 2024 Corporate Bond ETF ( BSCO ) is a fixed income exchange traded fund we covered before last year here . In our original piece we highlighted how the name was a term fund with matched maturity collateral, and thus represented a good risk/reward from a drawdown perspective for investors looking for yield. The fund has delivered since we voiced our opinion to continue holding the name:
Prior Rating (Seeking Alpha)