At a glance
BSMU charges 0.18% a year, above the 0.13% average of the 7 funds most like it (the 6th cheapest of 8). It has $283.0M in assets, the 8th largest of that group; it paid 2.81% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.2% with distributions reinvested, 5th of those 8 funds; over three years it returned +4.0% a year. At its worst it fell 17.7% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high. Its ten largest positions make up 4.5% of the fund, out of 1,798 in all.
The short version
Invesco BulletShares 2030 Municipal Bond ETF (BSMU) holds investment-grade municipal bonds that are exempt from federal income tax and mature, or are expected to be repaid, in 2030. Unlike most bond funds, it has an end date: it is scheduled to close around December 15, 2030, and pay its net assets to shareholders in cash. It pays income monthly, but its 0.18% expense ratio costs more than broad muni funds such as MUB and VTEB.
Price history
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BSMU -0.2% 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 | |
|---|---|---|---|---|---|---|
| BSMU official prospectus, to Dec 31, 2024 | — | +0.22% | — | — | — | -0.96% |
| BSMU price data to Oct 27, 2026 | -0.6% | -0.2% | +4.0% | -0.7% | — | -0.4% |
- Over the year to Oct 27, 2026, BSMU returned -0.2%, 5th of 8 among similar funds.
- Its 5-year annualized return was -0.7%.
- Its worst full calendar year was 2022 (-13.8%); its best was 2023 (+6.3%).
- The deepest fall in its price history was 19.5% (Jul 19, 2021 to Oct 31, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.6% | — |
| 2025 | +4.3% | — |
| 2024 | -0.4% | +0.22% |
| 2023 | +6.3% | +6.10% |
| 2022 | -13.8% | -13.55% |
| 2021 | — | +1.46% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 16.3% over that stretch · deepest drop along the way 17.7%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5000 | |
| 2025 | $0.6200 | +1.6% |
| 2024 | $0.6100 | +1.7% |
| 2023 | $0.6000 | +27.7% |
| 2022 | $0.4700 |
What's inside
As of Aug 31, 2026, the fund held 1,798 securities; the ten largest made up 4.52% of assets.
| Holding | Weight | |
|---|---|---|
| Los Angeles Unified School District Bonds and notes | 0.60% | |
| Metropolitan Transportation Authority (Green Bonds) Bonds and notes | 0.56% | |
| Metropolitan Transportation Authority (Green Bonds) Bonds and notes | 0.53% | |
| California (State of) Bonds and notes | 0.50% | |
| California (State of) Bonds and notes | 0.41% | |
| Triborough Bridge & Tunnel Authority (MTA Bridges & Tunnels) Bonds and notes | 0.41% | |
| Los Angeles Department of Water & Power Bonds and notes | 0.38% | |
| California (State of) Bonds and notes | 0.38% | |
| Metropolitan Transportation Authority (Green Bonds) Bonds and notes | 0.37% | |
| New York State Urban Development Corp. Bonds and notes | 0.36% | |
| Triborough Bridge & Tunnel Authority (Green Bonds) Bonds and notes | 0.33% | |
| New York (City of), NY Bonds and notes | 0.29% | |
| University of California Bonds and notes | 0.29% | |
| New Jersey (State of) Transportation Trust Fund Authority Bonds and notes | 0.28% | |
| Miracosta Community College District Bonds and notes | 0.28% |
By country
United States 98.78%By issuer
Municipalities 98.78%The bonds mature in 8.8 years on average (weighted by size), with an average coupon of 4.84%.
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 $28.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.38%, -1.00%, +0.25%.
How it works
BSMU tracks the Invesco BulletShares Municipal Bond 2030 Index. Invesco Indexing LLC builds the index, and it is affiliated with the fund's adviser. To qualify, a bond must come from a US state, local government, agency, territory or the District of Columbia. It must also be exempt from federal income tax, pay a fixed rate, carry an investment-grade rating (at least BBB- or Baa3), have at least $15 million outstanding and mature in 2030. Some bonds are callable, which means the issuer can repay them early. For these, the index uses an "effective maturity": the year the bond is likely to be repaid.
Bonds are weighted by market value. No single issuer can exceed 5% at each monthly rebalance. The fund uses sampling, so it holds a representative selection of the index rather than every bond. It had 1,798 positions as of August 31, 2026. Bonds are generally held until they mature or are called, and portfolio turnover was 11%.
In 2030 the index stops adding bonds and stops rebalancing. As bonds are repaid, the fund moves the money into short-term holdings such as variable rate demand obligations (short-term munis whose rates reset often), money market funds or cash. Its yield then drifts toward cash yields. Around December 15, 2030, the fund closes and pays out its net assets in cash, with no promised amount. It is not a target-date fund.
What it really costs
- BSMU charges 0.18% a year, versus an average of 0.13% for the similar funds below (6th 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 |
|---|---|---|---|---|
| BSMU | $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
BSMU pays federally tax-exempt income every month and has a set 2030 end date, so some investors use it to set money aside for spending around that year.
BSMU could add monthly income that is generally free of federal tax. Its trailing 12-month yield was 2.81% as of October 27, 2026. That tax break matters most in a taxable account. Inside an IRA or 401(k) it adds little. The fund launched in September 2020, so it has no record for the 2008 crisis or the 2020 crash. When interest rates rose in 2022, it fell 17.7% between January 3 and September 30. Its worst calendar year was 2022, at -13.55%. Its deepest drop was 19.5%, from July 2021 to October 2022, and it had not regained that earlier high as of October 27, 2026. Anyone who had to cash out in late 2022 would have locked in losses. Costs are 0.18% a year, or $58 over three years on $10,000 in the SEC's standard example. 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 exempt from federal tax. The trailing yield was 2.81% as of October 27, 2026.
- People building a bond ladder or setting aside money for spending around 2030. The fund plans to close and return cash about December 15, 2030.
- Those who want broad municipal exposure. As of August 31, 2026, it had 1,798 holdings, and the top 10 made up only 4.52% of assets.
Look elsewhere if
- Investors focused on cost. VTEB charges 0.03% and MUB 0.05%, against BSMU's 0.18%. The average among similar funds was 0.13%.
- Investors who hold bonds mainly in IRAs or 401(k)s, where tax-exempt interest adds little benefit and taxable bonds may pay more.
- Investors who need steady prices. BSMU fell 19.5% from July 2021 to October 2022 and had not regained that high by October 27, 2026.
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 |
|---|---|---|---|---|---|
| BSMU this fund | 8.8 yrs | 0.18% | $283.0M | -0.2% | +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% |
| 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% |
| SUB iShares Short-Term National Muni Bond ETF | 3.3 yrs | 0.07% | $11.64B | +2.1% | +3.3% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| BAB Invesco Taxable Municipal Bond ETF | 14.5 yrs | 0.28% | $900.7M | -2.4% | +5.8% |
Questions investors ask
When does BSMU mature?
BSMU is scheduled to close on or about December 15, 2030. The fund's board can change that date. At closing, the fund pays its net assets to shareholders in cash. It does not promise a set amount. During 2030, maturing bonds are not replaced with new 2030 bonds. The money goes into short-term holdings such as variable rate demand obligations, money market funds and cash, so the yield tends to fall toward cash yields in that final year.
Is BSMU income tax-free?
Mostly at the federal level, but there is no guarantee. To enter the index, a bond must be exempt from federal income tax. The prospectus warns that the interest could later be ruled taxable, and that the income may not be exempt from state taxes. The holdings come from many states, and large positions include California, New York and Los Angeles issuers. Residents of other states may therefore owe state tax on much of the income. Capital gains are generally taxable.
Does BSMU pay monthly dividends?
Yes. BSMU pays distributions every month. Over the 12 months to October 27, 2026, it paid about $0.60 per share, a trailing yield of 2.81%. The amount varies over time because it depends on the interest earned by the bonds the fund holds. In 2030, the final year, payouts will likely shrink as bonds mature and the fund shifts into cash and other short-term holdings.
What's the difference between BSMU and DFNM?
DFNM (Dimensional National Municipal Bond ETF) is the closest match by average maturity and issuer mix, at 99% similarity. Both had an average time to maturity of 8.8 years. DFNM charges 0.17% and BSMU 0.18%. As of October 27, 2026, DFNM returned 0.7% over one year and 3.6% a year over three years. BSMU returned -0.2% and 4.0%. DFNM is far larger, with about $2.2 billion in net assets. BSMU's defining feature is its scheduled close around December 15, 2030.
Can you lose money in BSMU?
Yes. BSMU lost 13.55% in 2022, when rising interest rates pushed bond prices down. Its worst quarter was a 9.17% drop in the first three months of 2022. Its average annual return from launch through December 31, 2024, was -0.96%. Holding until the fund closes in 2030 does not guarantee you get your original investment back. The payout depends on what the bonds are worth, and on any defaults or early calls along the way.