At a glance
BSMS charges 0.18% a year, above the 0.14% average of the 7 funds most like it (the 5th cheapest of 8). It has $323.5M in assets, the 8th largest of that group; it paid 2.8% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.9% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.0% a year. At its worst it fell 14.0% in the 2020 crash (S&P 500: 33.7%) and 13.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 41 months after the lows. Its ten largest positions make up 3.6% of the fund, out of 2,337 in all.
The short version
Invesco BulletShares 2028 Municipal Bond ETF (BSMS) tracks the Invesco BulletShares Municipal Bond 2028 Index, which holds investment-grade municipal bonds that are exempt from federal income tax and come due in 2028. Most bond funds run indefinitely, but this one has an end date. It plans to close around December 15, 2028 and pay its assets out in cash. It spreads that single maturity year across 2,337 holdings for 0.18% a year.
Price history
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BSMS +1.9% 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 | |
|---|---|---|---|---|---|---|
| BSMS official prospectus, to Dec 31, 2024 | — | +1.23% | — | +0.65% | — | +0.67% |
| BSMS price data to Oct 27, 2026 | +1.0% | +1.9% | +4.0% | +0.2% | — | +1.1% |
- Over the year to Oct 27, 2026, BSMS returned +1.9%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +0.2%.
- In the 2020 COVID crash it fell 14% and regained its old high 3.9 months after the low.
- Its worst full calendar year was 2022 (-9.9%); its best was 2020 (+6.7%).
- The deepest fall in its price history was 14.9% (Jul 19, 2021 to Oct 31, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.0% | — |
| 2025 | +3.5% | — |
| 2024 | +1.0% | +1.23% |
| 2023 | +4.9% | +4.80% |
| 2022 | -9.9% | -10.06% |
| 2021 | +1.5% | +1.54% |
| 2020 | +6.7% | +6.61% |
| 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 12.6% over that stretch · deepest drop along the way 14%, back to its old high 3.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.5% over that stretch · deepest drop along the way 13.8%, back to its old high 40.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5500 | |
| 2025 | $0.6400 | -1.5% |
| 2024 | $0.6500 | +8.3% |
| 2023 | $0.6000 | +57.9% |
| 2022 | $0.3800 | -3.0% |
| 2021 | $0.3916 | -14.9% |
| 2020 | $0.4604 |
What's inside
As of Aug 31, 2026, the fund held 2,337 securities; the ten largest made up 3.62% of assets.
| Holding | Weight | |
|---|---|---|
| Illinois (State of) Bonds and notes | 0.48% | |
| Triborough Bridge & Tunnel Authority Bonds and notes | 0.48% | |
| Texas (State of) Water Development Board Bonds and notes | 0.47% | |
| North Texas Tollway Authority Bonds and notes | 0.38% | |
| New Jersey (State of) Bonds and notes | 0.37% | |
| Los Angeles Department of Water & Power Bonds and notes | 0.33% | |
| Triborough Bridge & Tunnel Authority Bonds and notes | 0.29% | |
| Los Angeles Unified School District (Election of 2008) Bonds and notes | 0.29% | |
| Los Angeles (County of), CA Metropolitan Transportation Authority (Green Bonds) Bonds and notes | 0.27% | |
| Clark (County of), NV (Stadium Improvement Bonds) Bonds and notes | 0.24% | |
| Grand Parkway Transportation Corp. (TELA Supported) Bonds and notes | 0.23% | |
| Grand Parkway Transportation Corp. (TELA Supported) Bonds and notes | 0.23% | |
| New Jersey (State of) Economic Development Authority Bonds and notes | 0.23% | |
| Las Vegas (City of), NV Convention & Visitors Authority Bonds and notes | 0.22% | |
| New York (State of) Dormitory Authority Bonds and notes | 0.21% |
By country
United States 98.58%By issuer
Municipalities 98.58%The bonds mature in 7.5 years on average (weighted by size), with an average coupon of 4.91%.
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 $21.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.41%, -0.40%, +0.25%.
How it works
Invesco Indexing LLC, an affiliate of the fund's adviser, builds the index from US dollar bonds issued by states, state agencies, US territories, the District of Columbia and local governments. A bond qualifies if it is exempt from federal income tax, pays a fixed rate of interest, has at least $15 million outstanding, and is rated BBB- or Baa3 or higher. Those are the lowest investment-grade ratings. It must also mature, or 'effectively' mature, in 2028. Some bonds let the issuer repay them early, which is called a call. If an early call looks likely, the bond is counted in its call year. Pre-refunded bonds are counted in the year of their pre-refunded date.
Bonds are weighted by market value, and the index caps any single issuer at 5% at each monthly rebalance. The fund doesn't buy every bond. Instead it holds a representative sample: the index had 2,259 bonds as of October 31, 2025, and the fund held 2,337 positions as of August 31, 2026. Bonds are generally held until they mature or are called, and portfolio turnover was 11%.
During 2028 the index adds no new bonds and stops rebalancing. As bonds mature, the fund puts the money into cash, money market funds, variable rate demand obligations (short-term munis whose rates reset often) and similar holdings. Its yield then drifts toward cash rates. The fund then closes and pays out its net assets. It does not promise any set amount, and it is not a target-date fund.
What it really costs
- BSMS 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 |
|---|---|---|---|---|
| BSMS | $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 investment-grade munis that all come due in 2028, and its price swung only 2.1% over the year to October 27, 2026, though it still lost ground when rates rose sharply.
BSMS could provide monthly income that is exempt from federal income tax, plus a known end date. That may help someone setting money aside for an expense around 2028. Its yield over the previous 12 months was 2.8% as of October 27, 2026. Its 0.18% expense ratio is slightly above the 0.15% average of similar funds. It launched in 2019, so it has no 2008 record. In the 2020 COVID crash it fell 14% and recovered in about four months. In 2022, as interest rates rose, it fell 13.8% and took 40.8 months to recover. Its official 2022 return was -10.06%. Its deepest drop was 14.9%, from July 2021 to October 2022, and it had not fully regained that earlier peak as of October 27, 2026. Anyone forced to sell in 2022 would have locked in losses. 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 an expense around 2028 who want a diversified bond holding that pays out cash near December 15, 2028.
- Investors in taxable accounts wanting monthly income that is exempt from federal tax; the 12-month yield was 2.8% as of October 27, 2026.
- People wanting investment-grade munis spread across 2,337 positions, with the top 10 under 4% of assets as of August 31, 2026.
Look elsewhere if
- Those wanting a permanent, cheaper muni fund: SUB charges 0.07% and, like SHM, has no end date.
- Anyone needing a guaranteed amount back: BSMS promises no set payout at closing and returned -10.06% in 2022.
- IRA or 401(k) holders, since tax-exempt income offers little extra benefit inside accounts that are already tax-deferred.
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 |
|---|---|---|---|---|---|
| BSMS this fund | 7.5 yrs | 0.18% | $323.5M | +1.9% | +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% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| 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
What happens when BSMS matures in 2028?
BSMS is scheduled to close on or about December 15, 2028, and pay out its net assets in cash, though the fund's board can change that date. The payout isn't a fixed amount; it depends on what the holdings are worth. In the final 12 months, maturing bonds aren't replaced with new 2028 bonds. Instead the money can go into cash, money market funds and variable rate demand obligations (short-term municipal debt whose rate resets often), so the yield tends to drift toward cash yields.
Does BSMS pay monthly dividends?
Yes. BSMS pays distributions monthly. In the 12 months through October 27, 2026, it paid about $0.65 per share, a trailing yield of 2.8% (the past year's income divided by the share price). The payments come mainly from municipal bond interest and vary over time; unlike a single bond's fixed coupon, they aren't set in advance. In the fund's final year, as bonds mature and the money shifts into cash-like holdings, the yield tends to drift lower.
Is BSMS tax-free?
For federal income tax, largely yes. Its index only admits bonds whose interest is exempt from federal income tax, issued by states, local governments and public agencies such as the State of Illinois and the Triborough Bridge & Tunnel Authority. But the prospectus warns there is no guarantee the income will be free of federal or state tax, since a bond can be ruled taxable after it's issued, even retroactively. Profits from selling shares are generally taxable, and state taxes depend on where you live.
BSMS vs SHM: what's the difference?
The main difference is structure. BSMS holds municipal bonds maturing in 2028 and is set to close and return cash around December 15, 2028, while most bond funds run indefinitely. SHM, the closest match by maturity and issuer mix, costs 0.20% a year versus 0.18% for BSMS. As of October 27, 2026, BSMS returned 1.9% over one year and 4% a year over three, against 1.2% and 3.3% for SHM. SHM has far more assets, about $3.5 billion versus $324 million, per mid-2026 filings.
Can you lose money in BSMS?
Yes. Bond prices fall when interest rates rise, and BSMS lost 10.06% in 2022 as rates climbed. Its worst quarter was a 7.08% drop in the first quarter of 2022. Because the fund winds down in 2028, rate swings matter less as that date nears, but the final payout isn't guaranteed. Credit risk is spread thin: as of August 31, 2026, the fund held 2,337 positions. The largest, an Illinois general obligation bond (backed by the state's taxing power), was under 0.5% of assets.