BSJS - BSJS: Wait For A Better Entry
2024-03-21 18:51:50 ET
Summary
- Invesco BulletShares 2028 High Yield Corporate Bond ETF provides convenient access to high yield bonds maturing in 2028.
- All-time low credit spreads do not reflect reality, as actual defaults continue to increase. This signals potential risks for high yield bonds.
- Although buy-and-hold investors can expect 5-7% p.a. forward returns, I believe the best course of action is to wait for a more favourable entry.
I am personally quite fond of the Invesco BulletShares ETFs, as they provide investors with a convenient access to a fixed duration basket of high yield bonds. Previously, I had recommended investors buy the Invesco BulletShares 2026 High Yield Corporate Bond ETF ( BSJQ ), as investors who had bought BSJQ in June 2023 may be able to lock in a ~6% p.a. forward return, assuming moderating credit defaults....
BSJS: Wait For A Better Entry