BSJU vs IBHJ

BSJUBInvesco BulletShares 2030 High Yield Corporate Bond ETF

IBHJAiShares iBonds 2030 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.

IBHJ A junk-bond fund with an end date. IBHJ holds roughly 300 high-yield corporate bonds all maturing around 2030, then winds up and pays out: the maturity-date discipline of a single bond, spread across a portfolio.

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.

IBHJ The fund seeks to track an index of high-yield and income-generating corporate bonds maturing in 2030.

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.

• IBHJ Defined maturity is the whole point. The fund terminates on or about December 15 of its named year and distributes substantially all net assets to then-current holders, a bond-style end date on a high-yield sleeve.ishares.com
• About 300 bonds instead of one issuer's fate. In high yield, that spread matters: a single default is a dent in the portfolio rather than the whole position.ishares.com
• Pays monthly, and it sits in a full iBonds lineup of maturity years, so rungs can be built around it without leaving the same index family.ishares.com

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

• IBHJ At 0.35% a year, it charges more than the plain investment-grade target-maturity rungs (IBDU and BSCU run 0.10%). That gap is the price of the high-yield version.
• Thinly traded next to the larger target-maturity funds, so bid-ask spreads can be wider and bigger orders take more care to fill.
• These are non-investment-grade bonds, with greater default and price risk than higher-rated debt. Distributions vary rather than acting like a fixed coupon, and the portfolio shifts to cash in the final months.ishares.com

Full BSJU profile⁠

Full IBHJ profile⁠