BSJU vs IBHI

BSJUBInvesco BulletShares 2030 High Yield Corporate Bond ETF

IBHIAiShares iBonds 2029 Term High Yield and Income ETF

In short

BSJU A junk-bond ladder rung with an expiration date: roughly 200 high yield corporate bonds all maturing around 2030, monthly payouts, then the fund winds up in December 2030 and hands back what the portfolio is worth.

IBHI Bond ladders are usually an investment-grade game. IBHI takes the iBonds defined-maturity wrapper down into high yield: a basket of dollar-denominated junk and other income bonds that all mature in 2029, then the fund winds down and pays out.

Stated mandate

BSJU The fund seeks to track the investment results of the Invesco BulletShares USD High Yield Corporate Bond 2030 Index before fees and expenses. It invests at least 80% of total assets in corporate bonds in that index.

IBHI The fund seeks to track an index of U.S.-dollar-denominated, high-yield and other income-generating corporate bonds maturing in 2029.

Why people hold it

• BSJU Designed to terminate in December 2030 and distribute its net assets in cash, so the rung ends itself. No roll decision, no reinvestment homework.invesco.com
• One ticket spreads default risk across roughly 200 high yield issues, the kind of diversification that is hard to build buying junk bonds one at a time.
• Pays monthly, and duration shrinks on a schedule as 2030 approaches, which is the whole point of a dated bond fund.invesco.com
• Index-tracking and plain: at least 80% of assets sit in the corporate bonds of its 2030 high yield index. What you see in the name is what you own.

• IBHI A maturity date on junk bonds: it tracks an index of U.S.-dollar high-yield and other income-generating corporates maturing in 2029, then terminates and distributes at term.ishares.com
• Roughly 400 bonds behind it, so one issuer stumbling is a dent rather than a hole in a corner of the market where stumbles are part of the deal.
• Sits on the same 2029 rung as investment-grade IBDU and Treasury IBTJ, so you can move credit risk up or down without touching the maturity date.
• Coupons land monthly rather than quarterly, which matters if the point of the ladder is spending the income.

Worth knowing

• BSJU The 0.42% fee is the price of the junk-bond niche. Invesco's own 2030 investment grade rung (BSCU) runs 0.10%.
• No par value waiting at the end. The final payout is whatever the bonds are worth, and high yield issuers can default or call early.prnewswire.com
• In the maturity year's final stretch, holdings mature or get called and the portfolio drifts to cash and T-bills, so income tapers before the close.invesco.comprnewswire.com

• IBHI The credit risk is the point, and it cuts both ways: high-yield issuers can default, so the 2029 date sets the schedule, not what comes back.ishares.com
• 0.35% a year is above the typical target-maturity bond fund; the investment-grade neighbors IBDU and BSCT run 0.10%.
• Late in life it stops looking like a high-yield fund: as bonds mature, proceeds park in cash-like instruments until the fund closes and pays out.ishares.com

Full BSJU profile⁠

Full IBHI profile⁠