At a glance
BSMR charges 0.18% a year, above the 0.14% average of the 7 funds most like it (the 5th cheapest of 8). It has $357.8M in assets, the 8th largest of that group; it paid 2.64% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.0% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.0% a year. At its worst it fell 13.5% in the 2020 crash (S&P 500: 33.7%) and 11.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 35 months after the lows. Its ten largest positions make up 3.0% of the fund, out of 2,631 in all.
The short version
Invesco BulletShares 2027 Municipal Bond ETF (BSMR) holds investment-grade municipal bonds that are exempt from federal income tax and that mature, or are expected to be repaid early, in 2027. The fund is scheduled to close and pay out its assets in cash on or about December 15, 2027. That end date makes it act more like a single bond than an ongoing bond fund. It pays monthly, and its 0.18% expense ratio is above the 0.14% average of similar funds.
Price history
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BSMR +2.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BSMR official prospectus, to Dec 31, 2024 | — | +1.82% | — | +0.76% | — | +0.76% |
| BSMR price data to Oct 27, 2026 | +1.5% | +2.0% | +4.0% | +0.7% | — | +1.2% |
- Over the year to Oct 27, 2026, BSMR returned +2.0%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +0.7%.
- In the 2020 COVID crash it fell 13.5% and regained its old high 4.6 months after the low.
- Its worst full calendar year was 2022 (-7.6%); its best was 2020 (+5.0%).
- The deepest fall in its price history was 13.5% (Mar 2, 2020 to Mar 23, 2020), recovered by Aug 10, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.5% | — |
| 2025 | +3.1% | — |
| 2024 | +1.5% | +1.82% |
| 2023 | +4.4% | +4.21% |
| 2022 | -7.6% | -7.72% |
| 2021 | +1.1% | +1.16% |
| 2020 | +5.0% | +4.85% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 12.2% over that stretch · deepest drop along the way 13.5%, back to its old high 4.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10% over that stretch · deepest drop along the way 11%, back to its old high 35.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5200 | |
| 2025 | $0.6500 | 0.0% |
| 2024 | $0.6500 | +1.6% |
| 2023 | $0.6400 | +100.0% |
| 2022 | $0.3200 | +26.1% |
| 2021 | $0.2537 | -33.8% |
| 2020 | $0.3833 |
What's inside
As of Aug 31, 2026, the fund held 2,631 securities; the ten largest made up 3.04% of assets.
| Holding | Weight | |
|---|---|---|
| Illinois (State of) Bonds and notes | 0.47% | |
| Illinois (State of) Bonds and notes | 0.45% | |
| Hudson Yards Infrastructure Corp. Bonds and notes | 0.34% | |
| California (State of) Health Facilities Financing Authority (Kaiser Permanente) Bonds and notes | 0.33% | |
| New Jersey (State of) Bonds and notes | 0.30% | |
| New York (City of), NY Municipal Water Finance Authority Bonds and notes | 0.28% | |
| Texas (State of) Water Development Board Bonds and notes | 0.23% | |
| Houston (City of), TX Bonds and notes | 0.23% | |
| New York (City of), NY Municipal Water Finance Authority Bonds and notes | 0.22% | |
| New York (State of) Dormitory Authority (New School (The)) Bonds and notes | 0.20% | |
| Maryland (State of) Health & Higher Educational Facilities Authority (University of Maryland Medical System) Bonds and notes | 0.20% | |
| Auburn School District No. 408 of King & Pierce Counties Bonds and notes | 0.19% | |
| Geisinger Authority (Geisinger Health System) Bonds and notes | 0.19% | |
| Pennsylvania (Commonwealth of) Turnpike Commission Bonds and notes | 0.19% | |
| Oklahoma (State of) Turnpike Authority Bonds and notes | 0.19% |
By country
United States 98.66%By issuer
Municipalities 98.66%The bonds mature in 6.3 years on average (weighted by size), with an average coupon of 4.88%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $16.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.32%, -0.11%, +0.27%.
How it works
BSMR tracks the Invesco BulletShares Municipal Bond 2027 Index. Invesco Indexing LLC, an affiliate of the fund's adviser, runs the index. It starts with US dollar bonds from states, territories, local governments and their agencies. To qualify, a bond must be exempt from federal income tax, pay fixed interest and be rated at least BBB- or Baa3, the lowest investment-grade tier. It must also have at least $15 million outstanding. Finally, it must mature in 2027 or have an "effective maturity" in 2027. That means the issuer is likely to call the bond (repay it early) that year, or the bond was pre-refunded for that year.
Bonds are weighted by market value, with a 5% cap per issuer at each monthly rebalance. The fund holds a sample of the index rather than every bond. It held 2,631 positions as of August 31, 2026, against 2,765 index bonds as of October 31, 2025. It generally keeps bonds until they mature or are called.
During 2027, the index adds no new bonds and stops rebalancing. As bonds pay off, the fund moves the money into short-term holdings. These include variable rate demand obligations (municipal debt whose rate resets often), money market funds and cash, and the fund may also use futures or swaps. On or about December 15, 2027, the fund closes and pays its net assets to shareholders in cash. The payout is not a set amount, and BSMR is not a target-date fund.
What it really costs
- BSMR charges 0.18% a year, versus an average of 0.14% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $229 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BSMR | $18 | $58 | $101 | $229 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds short-dated, investment-grade, tax-exempt bonds with a fixed end date, so its swings have mostly been small, though it has still had real losses.
BSMR may help cover a known expense in late 2027 and pay tax-exempt income until then. It launched in 2019, so it has no 2008 record. In the 2020 COVID sell-off it fell 13.5% from March 2 to March 23, 2020, and recovered by August 10, 2020. When rates rose in 2022, it dropped 11% and did not regain its peak until September 8, 2025, about 35 months later. Its worst calendar year was 2022, at -7.72%. Selling in a year like that would have locked in a loss. It yielded 2.64% over the 12 months to October 27, 2026, paid monthly. In 2027 that yield will tend to drift toward cash rates. The fund costs $18 a year on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Savers with a spending need around late 2027 who want bonds maturing then, with the fund paying out cash on or about December 15, 2027.
- Investors with taxable accounts who want monthly income generally free of federal income tax, spread across 2,631 investment-grade positions as of August 31, 2026.
- People building a bond ladder (bonds maturing in different years) who want a 2027 municipal rung without picking individual bond issues.
Look elsewhere if
- People investing through IRAs or other tax-deferred accounts, where tax-exempt income brings no extra benefit and muni yields may trail taxable bonds.
- Investors focused on cost: the 0.18% expense ratio is above the 0.14% peer average and well above SUB's 0.07%.
- Investors who want a permanent bond holding, since the fund closes around December 15, 2027, and its yield will tend to fall toward cash rates during 2027.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| BSMR this fund | 6.3 yrs | 0.18% | $357.8M | +2.0% | +4.0% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| DFNM Dimensional National Municipal Bond ETF | 8.8 yrs | 0.17% | $2.24B | +0.7% | +3.6% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| MEAR iShares Short Maturity Municipal Bond Activ… | 13.1 yrs | 0.25% | $1.36B | +1.9% | +3.3% |
Questions investors ask
Does BSMR pay monthly dividends?
Yes. BSMR pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.62 per share, a yield of 2.64%. The amount changes from month to month because the fund's bonds mature, are called and get replaced. The index only includes bonds whose interest is exempt from federal income tax. However, the prospectus warns that tax-exempt status is not guaranteed and state taxes may apply.
What happens when BSMR matures in 2027?
BSMR is scheduled to close on or about December 15, 2027, and pay its net assets to shareholders in cash. The fund's board can change that date. Throughout 2027, money from maturing bonds goes into short-term holdings such as variable rate demand obligations, money market funds and cash. As a result, the yield will tend to fall toward cash rates. The final payout is not a set amount; it depends on what the portfolio is worth at the end.
BSMR vs SHM: what's the difference?
SHM, the SPDR Nuveen Bloomberg Short Term Municipal Bond ETF, is the closest match by average maturity and issuer mix. It charges 0.20%, compared with 0.18% for BSMR. As of October 27, 2026, BSMR returned 2.0% over one year and 4.0% a year over three years. SHM returned 1.2% and 3.3%. SHM is much larger, at $3.47 billion as of June 30, 2026. BSMR's main difference is its fixed December 2027 end date.
Is BSMR income tax-free?
Mostly from federal income tax, but with limits. To join the index, a bond must be exempt from federal income tax. Still, the prospectus says there is no guarantee the income will be exempt from federal or state taxes. A bond's status can be ruled taxable later, even back to the date it was issued. Any gains from selling shares at a profit are generally taxed. A tax professional can confirm how state taxes apply.
Can you lose money in BSMR?
Yes. BSMR fell 7.72% in 2022 as interest rates rose. That year it took about 35 months to regain its earlier peak. It also dropped 13.5% in March 2020 before recovering by August. Bond prices fall when rates rise, and municipal issuers can face financial trouble. As of December 31, 2024, the fund's average annual return was 1.82% over one year and 0.76% over five years.