At a glance
BSMT charges 0.18% a year, above the 0.14% average of the 7 funds most like it (the 5th cheapest of 8). It has $290.3M in assets, the 8th largest of that group; it paid 2.73% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.1% with distributions reinvested, 5th of those 8 funds; over three years it returned +4.0% a year. At its worst it fell 15.2% in the 2020 crash (S&P 500: 33.7%) and 15.1% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 3.8% of the fund, out of 1,992 in all.
The short version
Invesco BulletShares 2029 Municipal Bond ETF (BSMT) holds investment-grade municipal bonds that are exempt from federal income tax and that mature, or are expected to be called, in 2029. The fund itself is set to close on or about December 15, 2029, and will pay shareholders their share of its assets in cash. That fixed end date is what sets it apart from most muni funds. Its 0.18% expense ratio is a little above the 0.15% average of similar funds.
Price history
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BSMT +1.1% 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 | |
|---|---|---|---|---|---|---|
| BSMT official prospectus, to Dec 31, 2024 | — | +0.67% | — | +0.46% | — | +0.42% |
| BSMT price data to Oct 27, 2026 | +0.3% | +1.1% | +4.0% | -0.1% | — | +0.8% |
- Over the year to Oct 27, 2026, BSMT returned +1.1%, 5th of 8 among similar funds.
- Its 5-year annualized return was -0.1%.
- In the 2020 COVID crash it fell 15.2% and regained its old high 4.2 months after the low.
- Its worst full calendar year was 2022 (-11.0%); its best was 2020 (+6.9%).
- The deepest fall in its price history was 16.2% (Jul 19, 2021 to Oct 31, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.3% | — |
| 2025 | +3.8% | — |
| 2024 | +0.4% | +0.67% |
| 2023 | +5.3% | +5.38% |
| 2022 | -11.0% | -11.13% |
| 2021 | +1.4% | +1.33% |
| 2020 | +6.9% | +7.08% |
| 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 13.5% over that stretch · deepest drop along the way 15.2%, back to its old high 4.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.7% over that stretch · deepest drop along the way 15.1%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5200 | |
| 2025 | $0.6400 | 0.0% |
| 2024 | $0.6400 | +6.7% |
| 2023 | $0.6000 | +62.2% |
| 2022 | $0.3700 | +6.7% |
| 2021 | $0.3469 | -27.0% |
| 2020 | $0.4753 |
What's inside
As of Aug 31, 2026, the fund held 1,992 securities; the ten largest made up 3.83% of assets.
| Holding | Weight | |
|---|---|---|
| Triborough Bridge & Tunnel Authority Bonds and notes | 0.50% | |
| Triborough Bridge & Tunnel Authority Bonds and notes | 0.50% | |
| New Jersey (State of) Bonds and notes | 0.48% | |
| Hillsborough (County of), FL Industrial Development Authority (Baycare Health System) Bonds and notes | 0.39% | |
| Harris County Cultural Education Facilities Finance Corp. Bonds and notes | 0.39% | |
| Colorado (State of) Health Facilities Authority (CommonSpirit Health) Bonds and notes | 0.35% | |
| Ohio (State of) Water Development Authority Bonds and notes | 0.31% | |
| Los Angeles Unified School District Bonds and notes | 0.31% | |
| California (State of) Infrastructure & Economic Development Bank (California Academy of Sciences) (Green Bonds) Bonds and notes | 0.30% | |
| New York (City of), NY Municipal Water Finance Authority Bonds and notes | 0.30% | |
| New Jersey (State of) Turnpike Authority Bonds and notes | 0.30% | |
| Lancaster (County of), PA Hospital Authority (Penn State Health) Bonds and notes | 0.27% | |
| Pennsylvania (Commonwealth of) Turnpike Commission Bonds and notes | 0.27% | |
| University of California Bonds and notes | 0.27% | |
| Massachusetts (Commonwealth of) School Building Authority Bonds and notes | 0.26% |
By country
United States 98.49%By issuer
Municipalities 98.49%The bonds mature in 7.7 years on average (weighted by size), with an average coupon of 4.9%.
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 $20.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.41%, -0.63%, +0.29%.
How it works
BSMT tracks the Invesco BulletShares Municipal Bond 2029 Index, run by Invesco Indexing LLC, an affiliate of the fund's adviser. The index holds US municipal bonds, debt from states, territories and local governments, that mature in 2029. It assigns callable bonds, which issuers can repay early, to the year repayment looks likely. Each bond must be free of federal income tax, pay fixed interest, carry an investment-grade rating (the higher-quality tiers, at least BBB- or Baa3) and have at least $15 million outstanding.
The index weights bonds by market value, so bigger issues count more, and caps each issuer at 5% at the monthly rebalance. The fund invests at least 80% of its assets in index bonds but uses sampling, holding a representative mix rather than every bond. Holdings generally stay until they mature, are called or leave the index.
In 2029, the final year, the index stops adding bonds and rebalancing. Cash from maturing bonds then goes into short-term holdings such as variable rate demand obligations (municipal debt whose rate resets often), money market funds, cash and some derivatives. The fund is set to close on or about December 15, 2029, and pay out its net assets in cash; the Board can change that date. The payout is not a fixed amount.
What it really costs
- BSMT 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 |
|---|---|---|---|---|
| BSMT | $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 pays monthly income that is generally free of federal income tax and returns cash around a known date, which could match a planned expense near the end of 2029.
BSMT pays income every month. Its trailing 12-month yield was 2.73% as of October 27, 2026. That interest is generally exempt from federal income tax, which helps most in a taxable account. Because the fund winds down around December 15, 2029, it can work like one rung of a bond ladder. Costs are modest: the SEC's standard example puts them at $18 in the first year on a $10,000 investment.
Prices can still fall sharply. The fund launched in 2019, so it has no record from 2008. In the 2020 COVID crash it fell 15.2% in March, then recovered by late July, about four months later. As interest rates rose in 2022, it lost 11.13%, its worst calendar year. Its deepest drop, 16.2% between July 2021 and October 2022, had not been fully recovered as of October 27, 2026. Anyone who had to sell in 2022 locked in a loss. 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
- Investors with taxable accounts who want monthly income that is generally free of federal income tax. The trailing yield was 2.73% as of October 27, 2026.
- People planning for an expense around late 2029. The fund is set to close on or about December 15, 2029 and pay out cash.
- Investors who want wide spread: about 1,992 muni bonds, with the 10 largest only 3.83% of assets as of August 31, 2026.
Look elsewhere if
- Investors who hold bonds mainly in IRAs or 401(k)s. Tax-exempt income adds no extra benefit inside those accounts.
- Cost-focused investors: the 0.18% expense ratio is above the 0.15% peer average. MUB charges 0.05% and SUB charges 0.07%.
- Anyone wanting a permanent muni holding. BSMT closes in 2029, and in its final year its yield drifts toward cash rates.
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 |
|---|---|---|---|---|---|
| BSMT this fund | 7.7 yrs | 0.18% | $290.3M | +1.1% | +4.0% |
| DFNM Dimensional National Municipal Bond ETF | 8.8 yrs | 0.17% | $2.24B | +0.7% | +3.6% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| 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% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| JMST JPMorgan Ultra-Short Municipal Income ETF | 2.7 yrs | 0.18% | $7.36B | +2.5% | +3.3% |
| MEAR iShares Short Maturity Municipal Bond Activ… | 13.1 yrs | 0.25% | $1.36B | +1.9% | +3.3% |
Questions investors ask
Does BSMT pay monthly dividends?
Yes. BSMT pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.62 per share, a trailing yield of 2.73%. The amount changes over time because the fund's bonds mature, get called or are replaced. In its final year, as bonds pay off and the fund moves into cash-like holdings, its yield will tend to fall toward cash rates.
What happens to BSMT when it matures in 2029?
The fund is set to close on or about December 15, 2029, and the fund's Board can change that date. In 2029 the fund stops buying new bonds. As its bonds mature or are called, the money goes into cash, money market funds and short-term muni notes. Shareholders then receive their share of the remaining net assets in cash. The fund does not promise any set amount at the end.
Is BSMT income tax-free?
Mostly at the federal level. The index includes only bonds that are exempt from federal income tax. However, the prospectus warns there is no guarantee that the fund's income will be free of federal or state income taxes. A bond's tax status can change after it is issued, even retroactively. State taxes depend on where you live and which states issued the bonds, so a tax professional can help.
What's the difference between BSMT and DFNM?
The biggest difference is that BSMT has a fixed end date in 2029. DFNM was matched to BSMT on maturity and issuer mix, not on having an end date. Costs are nearly equal: 0.17% for DFNM versus 0.18% for BSMT. DFNM is much larger, with $2.24 billion in net assets compared with BSMT's $290 million. As of October 27, 2026, BSMT returned 1.1% over one year and 4% a year over three years. DFNM returned 0.7% and 3.6%.
Can you lose money in BSMT?
Yes. Bond prices fall when interest rates rise, and municipal issuers can run into trouble. BSMT lost 11.13% in 2022, and its worst quarter was a 7.81% drop in early 2022. From July 2021 to October 2022 it fell 16.2% in total, and that drop had not been fully recovered as of October 27, 2026. Its holdings are investment grade, but the payout at the end in 2029 is not guaranteed.